Your Complete Guide to Checking Accounts for Kids

Did you know that “just 23% of youth in a recent survey responded that they talk to their parents frequently about money” (financialeducatorscouncil.org)? That’s a sad statistic. It’s time for us parents to break the mold and start helping our kids learn how to save and how to spend. We need to teach our kids about money. Kids who learn to be money savvy from a young age are more likely to succeed financially as adults.

One of the first ways kids often learn about managing money is by learning to use a checking account. In this article, we’re talking about opening a checking account for kids. This is your complete guide, so read on to learn all about how to open and manage a checking account for your children.

Thinking of opening a checking account for your child? Here’s what you need to know:

First thing’s first: Can you even open a checking account for your child?

The quick answer is yes. Children can have checking accounts. As mentioned, it’s one of the first ways kids often learn that money doesn’t grow on trees – and how to manage it. Filling out a checkbook register – and looking at online statements – are great ways to see what comes in, versus what goes out, and learn what happens if you spend too much.

But here are some basic rules for opening a checking account for your kids:

Children need a parent to open the account as a joint account or custodial account. A child can’t just open their own checking account without a parent’s involvement.

Opening a joint or custodial account requires the parent to share in the responsibility of their children. For example, if your child spends more than is in the account, you’ll be responsible for the overdraft charges.

In some cases, you may decide to start teaching your child good spending habits by giving them a pre-loaded debit card until you’re comfortable they’ve built up some responsibility. There are plenty of options for this, whether it’s directly through your bank, or through a fintech like Go Henry or one some other top money apps.

When is my child ready for a checking account?

Kids start learning about money at a very young age. They love to receive gifts and they love to join you on your Target Runs. They’re used to receiving, and there’s that saying that kids think money grows on trees.

So it’s a valuable skill to teach kids how to spend their money wisely from a very young age. We like to talk about setting fnancial goals. And the earlier they learn fnancial responsibility, the better equipped they’ll be to handle money and make smart fnancial decisions throughout their life.

According to Bank of America, “at most banks, you can open a teen checking account when your child is 13.”

However, you also have another option for younger kids: rather than give them their own kids checking account, you can give them access to yours with a debit card. Many banks allow this for kids as young as 6. This will help you teach solid financial habits, but well within your control.

Can I open a children’s checking account online?

As with most things these days, you can open a children’s checking account online. It will just depend on your particular bank. According to NerdWallet, “Some teen checking accounts, such as the Capital One MONEY account, are only available online. Others may require that the child go to a branch to open their account.”

There are other financial literacy apps, like GoHenry, that allow kids ages 6-18 the opportunity to learn money spending skills before you take the plunge to get them their own account. An app like this is a baby step – or the first step – toward financial literacy in many households. With GoHenry, you can track things like chores, add allowance earnings, and allow them to spend with the debit card that filled from your own bank account.

What are the minimum balances for kids checking accounts?

This answer depends on your bank. And in some cases, you may not even need to keep a minimum dollar amount in the checking account. Check with your particular fnancial institution for all of their rules and regulations.

What are the best kids checking accounts?

According to The College Investor, the best checking accounts for kids include:

• The Fidelity Youth Account
• Copper
• Axos First Checking
• Chase First Banking℠
• Chase High School Checking
• Alliant Teen Checking

Check into the above as a starting point – and compare their offerings to what your current bank offers to see which is the best kids checking account for your family. Through a simple compare and contrast exercise of all of their features, you’ll fnd the solution that’s right for you.

Additional Kids Checking Account Resources from Around the Web:

Here are some other resources we’ve gathered for you from around the web. Give these a read to compare some other options for your kids. We hope you have fun with this exercise in teach your kids some great money skills.

MONEY: Teen Checking Account with Debit Card – A teen checking account with zero fees and a fee-free debit card for kids. Help your teen take the first step towards managing their own money with a bank account from Capital One. (capitalone.com)

14 Best Bank Accounts for Kids Under 18 (Checking & Savings)

• Rates for 2022 – Are you wondering what the best bank account is for your child? We cover the best checking and savings accounts for minors. Get started here. (moneycrashers.com)

Chase First Banking: Debit Card for Kids and Teens | Chase.com

• Chase First Banking is available exclusively for Chase checking customers to help teens and kids build good money habits. (account.chase.com)

Youth Checking: No Monthly Service Fees | USAA – With a youth checking account you’re both in control. Set ATM withdrawal limits, sign up for text alerts and more. (usaa.com)