Some banks allow persons under age 18 to open checking and savings accounts. However, some require the written permission of a parent or guardian for withdrawals.
39. What are interest rates?
Interest rates determine the amount of money that is paid either by a borrower or by a bank institution for the use of money. The rate of interest varies according to the type of account used. The interest rate is usually higher for long-term deposits than it is for a simple savings account. It is important to explore the options available before placing money into an account.
40. May someone under age 18 obtain a credit card?
In North Carolina, persons wishing to obtain a credit card must be at least 18 years old.
41. May a person under age 18 obtain a bank loan?
Generally, someone under age 18 may get a bank loan if he/she has an adult to co-sign and accept responsibility for the debt if the minor fails to satisfy it.
42. What do the abbreviations on paycheck stubs mean?
The abbreviations on paycheck stubs generally indicate where earnings have been deducted for various reasons. FICA and OASDI are deductions for Social Security. FWH indicates federal income tax withheld. The amount of money withheld under FWH depends on how much is earned and on how many dependents or deductions are claimed on the worker's W-4 form. North Carolina's income tax withholding is indicated by SWH. There may be other deductions depending on the employer and the type of job. These other deductions may be for savings, medical insurance, retirement or a variety of other reasons. It is important to understand the purpose of each deduction.
43. Who is legally financially responsible for youths under age 18?
In North Carolina, both parents are equally financially responsible for their children under 18. For this reason, parents have a right to their children's earnings unless the parents and the child agree otherwise.
44. May someone under age 18 enter into a valid contract?
Laws about contracts are designed to protect young people and to prevent them from assuming debts and obligations that they cannot meet. Generally, minors are not bound by any contracts they enter. This prevents most businesses from contracting with minors. However, sometimes businesses will enter into a contract with a minor if an adult co-signs to assume liability for the obligation if the minor fails to do so.