Teens With Checking Accounts: Be Careful With Auto-Pay
Over 60% of Americans use the automatic bill pay feature with their checking account. Why? It’s convenient, it ensures that bills get paid on time and eliminates the need to worry about writing a check every month for that expense.
It is all of those things, however, this article from Daily Finance highlights some of the issues that can arise when you set up this feature, including:
- Being short of funds when bills are paid.
- Continued withdrawals even if you stop using the service
- Errant payments
Check out the Next Gen Personal Finance activity on Managing your Online Checking Account to familiarize students with the mechanics of using an online account.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.