Teaching your child financial responsibility starts with a simple question many parents ask: “Can I open a bank account for my child?" The answer is yes, and the sooner, the better.
Whether your 6-year-old is saving their allowance in a piggy bank or your teenager just got their first job, a bank account turns pocket money into practical financial skills. Your child will be able to watch their savings grow, set short- and long-term goals, and earn interest.
Below, we’ll discuss the benefits of bank accounts for kids, which documents you’ll need, and step-by-step instructions for opening an account both online and in-branch.
Why Open a Bank Account for a Child?
A bank account gives your child hands-on experience with money management that you just won’t get with a piggy bank. They’ll learn to make consistent deposits, track their balance, and make smart spending decisions. By the time they’re young adults, these skills will be second nature as they handle car payments and living expenses.
Financial Literacy
Opening a bank account for a minor gives your child experience with the pillars of financial literacy:
- Earning: Making deposits from chores, jobs, and gifts.
- Saving: Setting money aside for short- and long-term goals.
- Spending: Using a debit card to make transactions while tracking and staying within balance.
- Investing: Understanding how money grows over time through interest.
- Protecting: Learning about online banking safety.
Independence
Children’s bank accounts are a safe training ground for financial independence. Your 12-year-old learns to deposit and track the money they make from mowing lawns, while your 17-year-old manages their own debit card for gas and lunch money.
Responsibility
Having their own account creates responsibility habits like checking balances, making consistent deposits, and tracking progress toward goals. This shifts their mindset to think, “Can I afford this right now?” instead of asking, “Can you buy this for me?”
Safe-Storage
Piggy banks teach about savings, but they don't protect against lost allowance or theft. A bank account protects your child’s money while teaching them important habits like password protection and account monitoring.
What to Look for In a Child’s Bank Account
When opening an account for your child, you'll want a credit union or bank that has:
- Low Monthly Fees: $0 monthly fees and penalty-free banking for ATM usage is preferable.
- Low Minimum Balance: $0 minimum balance is best for children because they typically make smaller deposits and shouldn’t be penalized for low balances.
- Online Banking: Safe and easy to use online banking apps help kids check their balances, track goals, and watch their savings grow.
- ATM Cards: Cards with withdrawal limits and no overdraft help children spend responsibly and avoid fees.
- Educational Resources: Articles and interactive tools that guide children through the basics of financial literacy and personal banking.
- NCUA/FDIC Insurance: Look for banks that have FDIC insurance or credit unions that have NCUA coverage. Both will keep your child's money safe for up to $250,000.
What Type of Account Should You Choose for Your Child?
The type of account you choose comes down to your child's age, whether they plan to save or spend more, and the goal of the account.
Savings Account
A savings account works well if your child is younger or is an older child saving for particular goals, such as college, a car, or a laptop. Golden 1 Credit Union’s Youth Savings Account has what your child needs to get started on savings. This account has a $0 minimum balance requirement while balances up to $1,000 earn 4.00% APY (annual percentage yield).*
Goal: Save for short- and long-term goals while earning interest.
Checking Account
For older children (teens 13-17) who want to track their spending and have access to a debit card, a checking account is a good introduction to banking. Golden 1 Credit Union offers a Student Checking Account with a $0 deposit to open and $0 monthly maintenance fees. This account helps students develop smart spending habits, learn basic budgeting, and manage their financial independence.
Goal: Learn how to use a debit card and manage daily spending.
Custodial Account
A parent or guardian manages investments and financial decisions for this account until the child reaches legal age in their state. These accounts are often set up for long-term growth and typically hold larger sums.
Goal: A parent manages and invests money on the child's behalf.
What You Need to Open an Account
If you want to know how to open a bank account for a minor, here are the documents you and your child will need to open an account:
Parent/Guardian:
- Government issued photo ID (driver’s license or passport)
- Social Security number
- Proof of address (utility bill, lease, or bank statement)
- Basic contact information
Child:
- Social Security number
- A form of identification (Social Security card, birth certificate, school ID)
- Basic contact information
- Opening deposit (varies by institution, e.g., $1 to $50)
Step-by-Step: How to Open a Bank Account for Your Child
Here's the step-by-step overview showing you how to open a bank account for your child:
1. Choose the account type. Start with a Youth Savings Account, then consider adding a Student Checking account as your child gets older and needs a debit card. If you'd like to save long-term funds for your child that you'll transfer over to them when they are of age, look into setting up a custodial account.
2. Gather required documents. Different documents are required for the parent/guardian and child to open an account.
Parent/guardian: Photo ID, SSN, proof of address, and contact information.
Child: SSN and form of ID (birth certificate, Social Security card, school ID).
3. Apply online, in branch, by phone. Fill out the required information, verify identities of child and parent, fund the initial deposit, and enable online or mobile banking if applicable.
4. Involve your child in setting up their account. Guide your child through the process and help them create their login. Talk to them about checking balances, setting goals, and following simple rules, like putting 20% of their deposits into savings.
5. Set parental controls and deposits. Set up alerts and spending/ATM limits. Disable overdraft so withdrawals and purchases that exceed the balance are denied to prevent penalty fees.
Tips for Managing Your Child’s Bank Account
Make Deposits a Routine
Encourage your child to deposit money, whether that be allowance or gifts, the day they receive it. Consistency creates habits which always beat willpower. Consider automating their allowance from your account to theirs and having them put 20% right into savings.
Make Opening an Account Fun
Work with your child to set up a goal and track their progress visibly through the mobile banking app. For their first small goal, match their deposits to get them excited about saving. This is similar to how employers match 401k contributions and teaches them that saving often comes with rewards and incentives.
Teach Tradeoffs Between Saving vs. Spending
Teach them the value of making smart purchases so they can start asking themselves questions like:
- “Can I afford this?”
- “Does this delay my goal?”
- “How many weeks of saving would this set me back?”
Having a 24-hour waiting period on non-essential items will help stop impulse buying.
Celebrate Milestones
Celebrate your child's first deposit, their first saved $100, and the first goal they hit. Talk with them weekly about their finances and see if they’re having any struggles or concerns. Give them kudos on their hard work because positive reinforcement will keep them engaged.
Start Saving for Your Child
Opening a bank account for your child gives them the gift of practical financial skills that will serve them for life. Learning how to work with a budget, set saving goals, and understanding the difference between wants and needs gives your child the hands-on experience they need to become financially responsible adults. Ready to get them started on the road toward financial independence? Apply for a Golden 1 Credit Union Youth Savings account today and give your child access to real-world banking experience.
