When it comes to money, it is never too early to start teaching your kids about the importance of it. There is no reason to wait until they are out of high school in order for them to open their first bank account. In fact, you can work with them from an early age to establish a good banking history, building on their savings. You can contribute your own money if you want, but this is their chance to also save whatever money they are able to earn or receive over the years. They can watch it grow, access the account on the Internet, and so much more. There are many types of bank accounts that you can consider for your young children and teenagers alike. Some of them put you in total control over the account, while others just have you as a joint owner. That is up to your individual parenting style. Some have fees attached, while others do not. In short, it pays to do your homework when it comes to choosing the right bank account for your children. Here are five suggestions to get you headed in the right direction.
1. Bank of America – Child Savings Account
There are actually two options for children when it comes to banking at Bank of America. You can get either a savings account for minors or you can open a custodial savings account. The minor savings account will allow members under the age of 18 to have complete access to all of the money deposited to their account. They will even be able to set up automatic transfers, and the account will be fully insured by the FDIC. With a custodial savings account, the member under the age of 18 will not have full access to the money in the account until they turn 18. However, transfers can still be arranged to made automatically and the account is also insured by the FDIC. The minor savings account incurs no monthly service fee and can be opened for a low opening deposit of $25. A minimum daily balance of $500 is required to avoid the $8 monthly service fee charged for the custodial savings account.
2. Chase Bank – High School Checking Account
Chase has an account specifically tailored for high school students. This is a great way for students who have a job to gain a mechanism to save much of their money in preparation for college. The minimum age to open the account is 13, with the account being available until one turns 19, at which point it will automatically convert over to the Total Checking Account offered by Chase. One will want to keep in mind that there is not an option for a debit card with this account, and there is no overdraft protection offered. The account will be owned jointly by the student and at least one parent, who must also have a Chase account. There is no monthly service fee and there is not actually a minimum deposit to open the account.
3. PNC Bank – S is for Savings
You might not have heard of PNC Banko before, but it is growing in popularity. The account we are talking about here is for children and it is based on Sesame Street. This is an account that aims for the child to learn all about banking by offering a complete learning center that is based on the Sesame Street cast of characters. You will find that the entire experience associated with this account is designed to be interactive. They will set their own goals, learn how to save, and monitor their own spending habits. Elmo and his gang will also enter the scene every once and a while to give the child some tips about money. Once you make an initial deposit of $25 into the account, there is no monthly fee attached to the account. No money actually has to be in the account for it to remain active.
4. Wells Fargo – Way2Save Savings Account for Children
Wells Fargo also offers a savings account specifically for children. Once this account is opened, online transfers can be made for free from one Wells Fargo account to another. There are also free online statements that each child can access to better learn and track their own money. The account will be jointly owned by the child and at least one parent who also has a Wells Fargo account. There is only a minimum deposit of $25 required to open the account, but no balance is required to waive a monthly fee, as there is not one. This account can be held until the child turns 18 years of age, after which it will convert to another type of account.
5. TD Bank – Student Checking Account
You might have heard of TD Bank and assumed it was just for stock investing. That is no longer the case. They have developed a checking account that is just for students between the ages of 17 and 23. This is a great way to help a teenager learn the basics of money towards the end of high school and then have a solid banking situation already established as they head off to college. Account holders can use a debit card, while the bank offers students a number of educational resources to help them. There is no minimum deposit required, and there is no monthly fee.
These are five great bank accounts that you will want to consider if you’re looking for a way for your children and teenagers to begin saving. There are also some practical reasons for your children to have a bank account of their own. It is helpful to keep their money separate from your own and to give them a sense of ownership over the account. Get them involved in every stage of the process so they can better understand how their role in the savings process will work over time