Banks for Kids - Choosing That First Account

Finding banks that offer accounts for children is easy enough to do. Many of these financial institutions realize that children are some of their best customers. Since most people do not move bank accounts very often, those financial institutions that allow teens and preteens to open accounts can establish a long-term relationship with them. As you consider where to open that first account with your children, be sure to learn what the facility can offer, or if there are any limitations.

Non-Checking Accounts

Checking accounts often come with fees and they provide very few, if any, benefits to kids. Rather, look for banks that offer other options for teens and preteens. The main focus is likely to be a savings account. Student accounts can be ideal if they have low- or no-fee options. They should not require a minimum balance to open or to maintain. In addition, they should offer some form of interest earning method, if possible.

Educational Benefits

There is no doubt that kids that have their own accounts learn money management sooner than they would otherwise. However, sometimes, the bank itself can be a resource. Ensure it offers online access to accounts so kids can learn what is happening with their money. Some programs even have opportunities for students to go into school to make a deposit. It is also a good idea to consider programs that can strengthen financial knowledge, such as by offering courses on how to balance a checkbook. Even if it does not offer a specific course, the tellers as well as consultants should be willing to explain this to the student first hand.

To Card or Not to Card

Ultimately, parents have to decide if their child should have an ATM card to access their funds. However, just having one does not have to be a problem. Providing access to funds means the child can make his or her own decisions about how to use and manage money. However, it is important to learn about fees and limitations depending on the type of account available.

Banks offer a variety of programs for teens and young adults. Learn as much as you can about the offer before you decide to enroll in it. This will, ultimately, give you the best opportunity to find a bank your child wants to stay at for a long time. In doing so, he or she may be able to get a student loan, first car loan, or even buy a home based on the good relationship established at a young age with the lender.