Children as young as six can now get debit cards from banks. The best age for a child to open a first direct bank account varies. Some young children can manage a debit card, especially with parental controls, but others may not be ready until their teens. You should consider several factors when opening your child's bank account.

Child Age Assessment

A toddler should not have a debit card. Younger or older people may be able to manage a financial account. This account uses debit cards instead of checks like a checking account.

To decide if your child is ready for their first bank account, ask yourself:

• Do they grasp the concept of money?
• Do they have their own money, like allowance or birthday cash, to deposit?
• Can they make wise buying choices?

Children can have a college savings account from birth. Younger kids might find it fun to watch their savings grow in a custodial account managed by a parent or guardian. Around middle school, kids often start learning about money management, making it a good time for their first bank account opening with a debit card.

Financial Responsibility

Banks may give children debit cards as young as 6, but many don't understand their use until they age. Your child must understand banking and be financially responsible.

Do not expect young children to know when to save or spot a good deal. They will learn these skills using their debit card. Before opening a bank account, people should see the value of goods and basic financial concepts.

Your Financial Capacity

When setting up a bank account or a prepaid debit card for your child, ensure you can fund it. They might use gift money until they have a job, or you can provide an allowance. If opting for an allowance, choose an amount that fits your budget, even if it's as little as $5. This careful planning helps smoothly manage your child’s first bank account opening.

Involving Parents in Financial Management

In the initial stages, especially for younger children, it's beneficial for parents to monitor their spending closely. Many kids' checking accounts have features that limit ATM withdrawals and debit purchases in general and specific categories. Receiving alerts for your child’s transactions can also help you stay informed.

For example, if you provide your child with $20 for a weekend outing, you can adjust the settings in their account's app to ensure the money is spent appropriately, like at a restaurant. This level of control and oversight is crucial in teaching them responsible financial habits.

Why Open a First Bank Account for Your Child?

When choosing an initial bank account for your child, consider your goals. Are you looking for a simple and safe way for your child to get money? You could also teach them about saving and investing or banking. Another common reason is to help people save for college. Your purpose will significantly influence your account.

Early custodial account opening can be wise for long-term goals like college funding or home ownership. Teaching your child to save a portion of their birthday or holiday money effectively teaches them about saving over time.

Many parents use spending accounts for convenience. This is convenient if your child frequently needs trip funds. Using a debit card for your teen or preadolescent is practical. A youth first bank account opening with a mobile app is ideal for your allowance-receiving child. Task allocation and reward transfers are available in Chase, GoHenry, and Greenlight accounts.

Online Banking Safety for Your Child's First Bank Account

Your child's first direct bank account should be with a secure bank like any adult account. Find FDIC- or NCUA-insured banks. This safeguards their funds.

Consider a banking app for debit card control. Switching the card on and off is helpful if lost or stolen. Secure websites and apps are essential for children's financial privacy. Choose a bank with fraud and purchase alerts for you and your child. You'll be notified immediately of any suspicious transactions.

Children's Debit Card Costs

Using a debit card can help your child manage money. Children's accounts often have no monthly, overdraft, or ATM fees. However, Greenlight, GoHenry, and Famzoo prepaid debit cards for kids have service fees.

Greenlight charges up to $14.98 monthly but offers 1% cash back on spending and 5% savings APY. When choosing your child's first bank account, consider whether these extra features are worth it. A free online bank account can give parents the convenience and security they want for their child's first bank account.

Teaching Different Age Groups About Money

Ages 2 – 5

Once they start talking and forming an identity, you can teach your child money management. Toddlers can begin by putting coins in a piggy bank. Preschoolers benefit from counting and wrapping coins for bank deposits.

Custodial savings accounts at local banks and credit unions are recommended. Saving and banking become more natural for kids after this experience. Use a traditional bank with your child. Show them how to talk to bank tellers and deposit and withdraw money. Many banks welcome kids and offer lollipops.

Ages 6 – 11

Children can use specialized savings and spending accounts at 6. Parents may wait longer to give their child a debit card. This is the perfect age to teach your child about bank selection. High interest rates, debit card cash-back, and innovative saving tools are standard in online banks.

Comparing fees, minimum balance requirements, and ATM accessibility is crucial. The online or traditional bank should have parental controls and insurance. Look for an institution that makes transferring money from your account to your child's easy, making financial management more effortless.

Ages 12 – 17

Allowing your teen to manage their finances helps them develop a money mindset. Encourage them to choose an online bank with high-yield savings accounts and relevant features.

Features like savings subaccounts become essential. As a parent, consider rewarding chores with money and categorizing spending. Most banking apps allow parental debit card locking. Check this functionality to secure and manage your child's first bank account.