What’s A Good Age To Open A Checking Account?

Are you trying to decide the best age to open a checking account for your child? Here are some considerations and tips.

Many parents and guardians start their children off with a savings account to teach them the importance of saving early on but worry about the potential pitfalls of introducing a checking account. Have no fear – with the proper guidance, your child can learn how to use all of their financial accounts responsibly.

In today’s digital world, personal banking is convenient and interactive, making it a great tool to monitor your child’s progress while instilling a sense of responsibility. As your child begins earning their own income, they can build upon the foundation that’s already been established.

Questions To Consider When Opening A Checking Account

What’s A Good Age For A Checking Account?

There isn’t a straightforward answer to this question. Ultimately, it’s up to you, the parent or guardian, to decide the best age to open a checking account. You know if your child is ready and likely to learn or benefit from the experience. Typically, youth ages 13 and up can open a checking account with a joint account holder. Some financial institutions will have a minimum age restriction; if they don’t, then the parent or guardian is the deciding factor in opening the checking account.

Sometimes, it’s helpful for your child to see it as a milestone that coincides with another, such as learning to drive or getting a part-time job. Tying it to events such as these can help your child grasp the depth of the responsibility that comes with their own checking account.

What Are Checking Accounts?

Checking accounts are the bank accounts you use daily to make deposits and withdrawals, as well as in-person and online purchases. They cover everyday expenses like rent, groceries, etc.

Many financial institutions will have different types of checking accounts based on your needs. However, a simple plan will be an excellent start for a child or young adult. For the most part, checking accounts don’t pay interest and often don’t charge monthly or overdraft fees.

Can A 16-Year-Old Open A Checking Account Without A Parent?

Most banks require that a person be at least 18 years old to open a checking account, but this rule can vary by state. That said, many banks will allow youth checking accounts if they are opened with a parent.

A+FCU offers a different option to many young people eager to learn about financial management – our youth savings account option. An A+FCU Youth Membership Savings Account can help kids and teens understand how putting money away in a savings account protects it and helps it grow. Teens aged 13 and up can open an account online, while youth aged 12 and under must visit an A+FCU branch location to get started.

How Will I Keep Track Of My Child’s Money?

With today’s technology, you can track your child’s savings and spending with online banking or a mobile banking app. Ensure they know how to balance their accounts, review statements, actively monitor their account, and report discrepancies.

It’s common to worry your child will experience challenges and make mistakes when managing money – this is to be expected. Mistakes will happen, but that creates an opportunity for them to learn and understand how they can make better choices next time. Also, if necessary, the checking account can be closed as easily as it was opened.

What Will My Child Learn From Having A Checking Account?

This is a formative time for youth. Opening a checking account is a vital tool for gaining money management skills and understanding how debit cards, deposits, withdrawals, and budgets work. It’s a chance to learn and confidently grow.

This opportunity also allows children to learn to avoid low balances, overdraft fees, returned checks, and the like. The goal is for these lessons to extend beyond banking and positively impact other aspects of their financial journey – like saving for college or buying a car.

Open Up Your Child’s First Checking Account At A+FCU

Bottom line, it’s important for children to acquire and cultivate basic money management skills. Whether through opening a checking account of their own or involving them in yours, fostering a solid grasp of personal financial knowledge and skills will only benefit them in the long run.