Money Tips for Parents: Opening a Bank Account for Kids

As a parent, you always want what’s best for your kid. That includes making sure they’re ready for the wonderful world of money management. Getting started as early as possible gives them an advantage later on in life. Opening a bank account for your child is a great way to introduce them to financial responsibility and help them build healthy money habits.

From learning how to save to understanding the basics of budgeting, the right bank account can serve as a foundation for your child’s financial future. Once you’ve decided to open a bank account for your child, what’s the best way to go about it?

Choose the right account

• Look around at different banks for a custodial or joint account that you can manage until they reach 18. Most banks have accounts that are specifically designed with kids in mind.
• Compare monthly fees or minimum balances. Make sure you won’t be paying unnecessary fees.
• Look for features like Zelle, mobile banking apps, and budgeting tools that can make the introduction to finances easier.
• Explore what kind of control features the account has. Apps like SecurLOCK™ Equip give you greater control over the account. You can set spending limits, limit locations where the card can be used, easily switch the card on and off if it’s misplaced, and receive instant transaction alerts.

Make them an active participant

• Help set goals. This will look different depending on age, but if your child is younger, encourage them to save for something that’s a wish list item or meaningful to them, like a toy or a game. If your child is teenaged, entice them to save for something like a car or college.
• Make a day out of it! Go do their favorite activity, stop by their favorite place to eat before, or stop for a treat after. If they received a rewards debit card, allow them to use it there to start earning.

Make it a team effort

• “Gamify” saving by creating challenges like “No-Spend Week” where they avoid spending or “Save the Change” where they set aside all the change they find. If they achieve the challenge goal, reward them with a savings match, extra screen time, a later curfew, or a sweet treat.
• Be an example of good budgeting and disciplined spending to show that you have financial goals, too, and they’re not in it alone.

Teach them about debit cards

• As your child gets older, it’s helpful to introduce them to a debit card. Some banks offer prepaid debit cards designed for kids that allow parents to set limits and monitor transactions. Other accounts, like our Shining Star savings, may be structured as a savings account, but are able to have a debit card.

Make it an ongoing conversation

Opening the account is just the beginning. Keep checking in to see if savings goals are being met, how their money is growing in an interest-bearing account, and whether their budget is on track. Talk to your kids about your own savings goals, how you’ve achieved them, any mistakes you’ve made that they should avoid, and how you manage your income and expenses. As your kids grow older, help them identify short and long-term financial goals making money management a natural part of their everyday conversations.

Thinking about money might not be at the top of your child’s interests. But thinking about what that money can do for them is a great way to get them interested. No matter how old your child is, opening a bank account helps demystify money management and sets them up to have healthy money habits that they will carry into adulthood.

Questions? We’re here to answer them.

Stop by any of our banking centers or schedule an appointment today.