Teenage Terms and Conditions

Hi Scott,

Recently my 13-year-old son received a letter from the ANZ bank with a new debit card and the promise of a PIN to follow. The problem is, his mum and I knew nothing about it! My son had organised the whole thing by himself, from the initial online application to the in-branch ID verification. We were horrified — how is this possible? So I went with my son to the bank and asked the teller if this was true. They called the manager, who said ‘yes’. I still don’t believe it!

Chris

Hi Chris,

I spoke to the ANZ and they said:

“Customers from 12 years old are able to open an everyday account; however, we only offer EFTPOS cards rather than VISA debit cards for anyone under the age of 14 years.”

In other words, they’re like any business looking for customers. And their aim is to convert these kids into highly profitable customers, which is where the problems begin.

Sure, it would be dandy if all the banks signed a charter that they won’t push products on kids under the age of, say, 21. Yet that’s a pipedream. Besides, there are plenty of other sharks that will bite our kids (hello Nimble).

A more practical approach is to build the financial confidence of every Australian kid before they leave school.

(I’m working on that.)

But, Chris, this isn’t about ANZ. Please don’t make it about them.

This is about your son being a total go-getter.

Seriously.

You should be bragging about his initiative to anyone who listens. Let him overhear how proud you are.

How many parents of a teenager would LOVE to have this problem?

In my book The Barefoot Investor for Families, one of the challenges in the Barefoot 10 — the 10 things you want your kid to do before they leave home — is to set up a low-fee bank account. Another is giving them your utility bills and bank bills and paying them a commission if they can get a cheaper rate.

Embrace it!

Scott.