1st time bank account (16 years old)

Li0nhead

No not mine but been looking on the guides on this site for best bank accounts and notice there is no advice for those just starting out (other than a basic account).

Basically the advice/suggestion for account is for my Nephew.
Hes 16 and getting a part time job for the 1st time in the next few weeks (has the offer already). So just talking a few things through with him (N.I number, fact he will need money for transport etc) I realised he has not got a bank account.

So 1st thought is to check here. Apart from the basic accounts (Looking at the Co-Op one as the option so far) its not really covered so thought I would ask in the forum.

Basically hes an naive borderline idiot who would be trusted with any sort of overdraft as he would think it is free money.
Perfect example of how stupid/inexperienced he is was shown about 6 months ago when in a shop he wanted a can of pop. He picked up a can of Coke, his friend said 'Its 50p for one, £1 for 3, why not get 3?' My Nephew's response: 'I only want one though'.
Lots of head shaking from me and I ask him 'then when you want one tomorrow and the day after you would have spent £1.50 rather than £1'.
*blank look on Nephews face*.
Remember he is 16 (15 then) not 6-8.

I think this part time job will help him finally get the concept of money.
So the account I am looking to point him in the direction of has to be very basic one where he cannot get himself into trouble with an overdraft and ideally cannot sign up to 50 direct debits. Even though I think the latter would not be possible to find an account for and we will just have to explain to him 'things have to be paid for so do not sign up'.

Any suggestions of accounts (other than 'don't have a Nephew who is an idiot')

pmduk

A savings account with an ATM card would stop him using debit transactions and, usually, direct debits. Whilst this would serve in the short term it avoids the long term issue of his financial education.

You need to get him to want to learn to manage money, perhaps to the extent that he will accept some form of help/supervision. That may be the time to move to a current or even basic account. Remember there are occasions when bank charges can push a basic account into overdraft.

There used to be a pdf guide on the site for educating teenagers.

ETA This page and the guides are well worth a read.

Aquamania

Li0nhead wrote: »

No not mine but been looking on the guides on this site for best bank accounts and notice there is no advice for those just starting out (other than a basic account).

Basically the advice/suggestion for account is for my Nephew.
Hes 16 and getting a part time job for the 1st time in the next few weeks (has the offer already). So just talking a few things through with him (N.I number, fact he will need money for transport etc) I realised he has not got a bank account.

So 1st thought is to check here. Apart from the basic accounts (Looking at the Co-Op one as the option so far) its not really covered so thought I would ask in the forum.

Basically hes an naive borderline idiot who would be trusted with any sort of overdraft as he would think it is free money.
Perfect example of how stupid/inexperienced he is was shown about 6 months ago when in a shop he wanted a can of pop. He picked up a can of Coke, his friend said 'Its 50p for one, £1 for 3, why not get 3?' My Nephew's response: 'I only want one though'.
Lots of head shaking from me and I ask him 'then when you want one tomorrow and the day after you would have spent £1.50 rather than £1'.
*blank look on Nephews face*.
Remember he is 16 (15 then) not 6-8.

I think this part time job will help him finally get the concept of money.
So the account I am looking to point him in the direction of has to be very basic one where he cannot get himself into trouble with an overdraft and ideally cannot sign up to 50 direct debits. Even though I think the latter would not be possible to find an account for and we will just have to explain to him 'things have to be paid for so do not sign up'.

Any suggestions of accounts (other than 'don't have a Nephew who is an idiot')

What's wrong with that?

He saved himself from spending 50p he didn't need to.
(How do you know what he want's tomorrow or the next day? :huh:)

I guess you're they type of person who comes back from the sales laden down with goods telling everyone how much money you've saved. :cool:

Anyway, to answer the main point of your question:

Try a local building society (or even possibly a credit union) with a passbook operated account.

Li0nhead

Aquamania wrote: »

What's wrong with that?

He saved himself from spending 50p he didn't need to.
(How do you know what he want's tomorrow or the next day? :huh:)

I guess you're they type of person who comes back from the sales laden down with goods telling everyone how much money you've saved. :cool:

Anyway, to answer the main point of your question:

Try a local building society (or even possibly a credit union) with a passbook operated account.

He drinks pop daily. He would have bought a 3rd can within the week.

The sort of person he is: A few months back he asked me how i can buy clothes without a label on. I could have gone down a really long winded route of showing him claims of the brand/labels coming out of the same factories as non labels online but could not be bothered and just said 'Wait till your the one playing for your clothes and see if your still only buying labels.'

Credit Union sounds a good idea and there is one in town that covers the entire area and does indeed offer current accounts (monthly fee i believe).

System

Some 16 years olds are childish and need brands to 'fit in'.

I would suggest either of the TSB, Lloyds or Nationwide 'Youth' accounts.
All are free to use, can come with a debit or ATM card and minor perks.

Li0nhead wrote: »

He drinks pop daily. He would have bought a 3rd can within the week.

The sort of person he is: A few months back he asked me how i can buy clothes without a label on. I could have gone down a really long winded route of showing him claims of the brand/labels coming out of the same factories as non labels online but could not be bothered and just said 'Wait till your the one playing for your clothes and see if your still only buying labels.'

colsten

Li0nhead wrote: »

Credit Union sounds a good idea and there is one in town that covers the entire area and does indeed offer current accounts (monthly fee i believe).

Why should the poor kid pay for a credit union current account (that presumably pays no interest and has no perks) when there are free current accounts (that pay interest and have perks)? I hope he does his own research.

No accounts for under 18s offers overdrafts, btw.

LittleMissGiggles123

My 14 year old has a Santander 123 Mini account. No overdraft obviously, comes with a debit card & online banking so she can log in & check the balance whenever she needs to.

Li0nhead

Heng_Leng wrote: »

Some 16 years olds are childish and need brands to 'fit in'.

I would suggest either of the TSB, Lloyds or Nationwide 'Youth' accounts.
All are free to use, can come with a debit or ATM card and minor perks.

Finally settled on the Lloyd's one. Thanks.