How to Teach ATM Card Usage to Children

Explain an ATM̵7;s Function

• Explain the purpose of an ATM to your child. According to Mary Hunt̵7;s 2012 book ̶0;Raising Financially Confident Kids,̶1; compare an ATM to a robot -- a machine that performs the functions of a teller and helps you to deposit and withdraw money from your bank account. An ATM rarely makes mistakes and doesn̵7;t go on vacation. An ATM also works around the clock and in any type of weather. While the benefit to a bank is automation of small tasks, the advantage for you is convenience. You can access your bank account from multiple ATM locations at any time. As for disadvantages, describe the fees associated with ATM use to your child so she understands that it is not always a free service.

Practice Using an ATM

• Take your child on a field trip to an ATM. Walk her through the steps of inputting a PIN number, explaining how PIN is a secret code and used for security reasons. Show her ATM screens, pointing out how withdrawals subtract money from your account; use the receipt to show the new balance. Try to withdraw an amount that̵7;s over your limit, explaining how a bank restricts the cash amount you can access. If you have to stand in line to use the ATM, describe proper etiquette to your child. Explain why you shouldn̵7;t hover over another ATM user and peek at that person̵7;s transaction.

Track Transactions Together

• Conduct a meeting with your child to track ATM transactions -- a lesson in money management. According to Dinaro, have your child keep her own notebook of ATM transactions, so she can see how withdrawal fees accumulate as well as how withdrawals affect the cash balances in your account. If your child is about to enter college and has her first ATM card, show her that ATM transactions may require a few days for processing. Emphasize that she needs to track her account balances independent of her online account, so she doesn̵7;t go into overdraft. Show her ̶0;pending̶1; ATM transactions on your online account, explaining that these transactions aren̵7;t done until the vendor finishes his accounts.

Provide Instruction on Safety

• If you̵7;ve given your child an ATM card, establish guidelines on using the card in a safe and secure way. Explain that thieves want nothing more than your PIN number. Stanford University warns college students about calls from thieves posing as bank officers or police and asking for PIN numbers. Advise your child to memorize the PIN number but avoid keeping a written record of it. Also, have your child tear up the ATM receipt or keep it. Tell your child to avoid using an ATM at night or an ATM that̵7;s poorly lit or tucked away from pedestrian traffic. Have her keep an eye out for strangers loitering around ATMs.