Opening a bank account for a child introduces hands-on financial literacy through real-world saving, spending tracking, and interest earning. Children of any age can have a savings account, but a parent or guardian must be a joint owner on accounts for minors.
10 steps across 1 sections
1. Steps Process
- Decide on the account type:
- Savings account Best for younger children learning to save; earns interest; limited withdrawals
- Checking/debit account Better for teens learning to budget and manage spending; comes with a debit card
- Kid-focused fintech account Greenlight, GoHenry, Copper — offer debit cards, savings goals, parental controls, and educational features
- Compare banks and credit unions — Look for no monthly fees, no minimum balance, competitive interest rates, youth-specific programs, and educational resources; credit unions often offer better rate...
- Gather required documents — Child's Social Security number, child's birth certificate or proof of identity, parent/guardian government-issued photo ID, parent/guardian Social Security number, proof...
- Visit the bank or open online — Many banks allow online account opening; some require an in-person visit for minors; bring your child to make it a learning experience
- Make the initial deposit — Minimums range from $0-100 depending on the institution; let your child hand over the money to make the experience tangible
- Set up savings goals — Many youth accounts and fintech apps allow setting specific savings goals (new bike, vacation spending money, college fund); visual progress motivates children
- Teach account management — Show your child how to check the balance, track deposits and withdrawals, read a bank statement, and understand interest earned
Common Mistakes
- Choosing an account with monthly fees
- Not involving the child in the process
- Using the account as a parental piggy bank
- Forgetting about UTMA/UGMA tax rules
- Not teaching about fees and charges
Pro Tips
- Credit unions often have the best youth programs
- High-yield online savings accounts maximize earnings
- Kid fintech apps combine banking with education
- Match your child's savings
- Use the account to teach about compound interest