Note: this article is not intended to provide investment, legal, tax, or accounting advice. Before making decisions with investing, legal, tax, or accounting ramifications, you should consult appropriate professionals for advice that is specific to your situation.

Over the course of a lifetime, managing your personal finances may require the use of a variety of financial accounts including: bank accounts, credit cards, loans, mortgages, retirement savings and investments. Here is a quick overview for parents to share with their teens of the many different types of financial accounts available.

Checking Accounts 
Think of this as a financial hub. It's where a paycheck lands, and is designed for everyday financial transactions such as paying bills, making purchases, and withdrawing cash.

Savings Accounts
Savings accounts are designed to earn modest interest on money set aside for emergencies (ex: car trouble, medical situations, unexpected bills) or for major expenses (vacations or travel, a new car, a security deposit on a new apartment). Unlike a checking account, there may be  limits on how often you can withdraw money and you can not use this account for day-to-day purposes.

Credit Cards 
When using a credit card to make a purchase, instead of paying with a debit card, cash, or a check, the user is borrowing money up to a certain limit. Paying off a credit card balance in full each month helps to avoid interest charges.

Brokerage Accounts
A brokerage account is a type of investment account that allows you to buy and sell a variety of investments; including stocks, ETFs, and mutual funds.

Money Market AccountsMoney market accounts offer higher interest rates than a typical savings account. They may require a higher minimum balance, and are not FDIC-insured, but they can provide better returns.

Individual Stocks and Bonds 
Buying individual stocks means owning a piece of a company. Bonds, on the other hand, are loans you give to companies or governments in exchange for interest over time. Stocks are generally riskier but can offer higher returns, while bonds are more stable.

‍Exchange-Traded Funds (ETFs)
ETFs are like baskets of investments—stocks, bonds, or other assets—traded on an exchange, just like a stock. They offer more diversification compared to purchasing an individual stock, meaning your risk is spread across multiple investments, not just one.

‍Robo-Advisors
If investing sounds daunting, robo-advisors can help. These automated platforms create and manage a diversified portfolio for you, based on your risk tolerance and goals, with minimal effort on your part. It is worth noting that robo-advisors typically charge a fee on the total value of assets they manage, in addition to any fees charged by the ETFs they invest in. 

‍Certificates of Deposit (CDs)
CDs represent an agreement to lock your funds for a set period (from a few months to several years) in exchange for a higher interest rate than a regular savings account. The catch? Early withdrawals often come with penalties.

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