Setting Up a Savings Account for Your Child

Helping your child open their first savings account is more than just a practical move—it’s a powerful lesson in financial responsibility. In a world where spending is easy and saving often feels optional, establishing early habits around money can set the tone for a lifetime of smart financial decisions.

Whether your child is five or fifteen, opening a savings account offers an ideal opportunity for teaching kids to save, understand the value of money, and set future goals. But before you head to the bank, it’s helpful to know what to look for in children’s savings accounts and how to use them as an educational tool.

Why Open a Savings Account for a Child?

Early Financial Literacy Starts With Action

Reading about saving is one thing—doing it is another. A savings account provides children with a real-world way to watch their money grow, make deposits, and track progress toward goals. It’s hands-on learning with a lasting impact.

Builds Healthy Money Habits

Regularly saving, even in small amounts, teaches discipline, patience, and delayed gratification. These lessons are fundamental in a society often driven by instant purchases and on-demand spending.

Encourages Long-Term Thinking

Children who get used to setting aside money for the future are more likely to carry that mindset into adulthood. Whether they’re saving for a toy, a bike, or even college, banking for minors introduces goal setting and planning early on.

When Should You Open a Child’s Savings Account?

There’s no minimum age to start, and some parents choose to open accounts as soon as their child receives birthday money or begins earning a small allowance. Others wait until their child expresses interest in saving for something specific.

A good indicator is when your child starts to understand basic money concepts—like the difference between coins and bills or how buying something reduces their total amount. This usually happens between ages 5 and 7, but every child is different.

What to Look for in Children’s Savings Accounts

Not all bank accounts are created equal—especially when it comes to banking for minors. Here are a few key features to consider when choosing the right account:

No Monthly Fees

Look for accounts that don’t charge monthly maintenance fees. Children’s balances are usually small, so fees can eat into savings quickly.

Low or No Minimum Balance Requirements

Choose an account that doesn’t require a high opening deposit or ongoing balance. The goal is to make saving accessible and stress-free.

Interest-Earning Capability

Some savings accounts offer a small amount of interest, allowing kids to see their money grow over time. This can be a great motivator and an easy way to introduce the concept of compounding.

Parental Controls and Joint Access

Most banks require that an adult co-own the account. This gives parents the ability to monitor transactions, transfer funds, and guide the process while still giving the child a sense of ownership.

Online and Mobile Access

Many modern banks offer kid-friendly apps that help track balances and savings goals in a visual, engaging way. This digital access is especially helpful for older kids and teens who are already tech-savvy.

FDIC or NCUA Insured

Ensure the institution is federally insured so your child’s money is protected up to the legal limit.

How to Open a Savings Account for Your Child

The process is generally straightforward, but it helps to be prepared. Here’s what you’ll typically need:

• Your child’s Social Security number
• Parent or guardian ID (driver’s license or passport)
• Proof of address (a utility bill or lease may be requested)
• An initial deposit, depending on the bank’s requirements

You can open an account in person or, with many institutions, online. Credit unions, traditional banks, and online-only banks all offer children’s savings accounts, so compare options to find the best fit.

Turning the Account Into a Teaching Tool

Make Deposits a Ritual

Turn allowance day, birthday gifts, or earnings from small jobs into savings opportunities. Encourage your child to put aside a portion of their money regularly, reinforcing the idea that saving is a habit—not a one-time event.

Set Goals and Celebrate Progress

Help your child identify a savings goal—a new toy, book, or even a class trip. Break it down into manageable steps and track progress together. Some banks even offer digital tools or printable charts to help visualise goals.

Review Statements Together

Use monthly or quarterly bank statements as a conversation starter. Look at interest earned, discuss spending (if the account includes withdrawals), and celebrate smart decisions.

Introduce Basic Concepts

Even with younger kids, you can begin discussing:

• Why it’s important to save
• How banks protect your money
• What interest means
• The difference between short-term wants and long-term goals

As they get older, expand into more advanced topics like budgeting, investing, and debit cards.

Consider Upgrading to a Teen Account Later

As your child matures, their financial needs will change. Around age 13 to 15, many banks allow a transition to teen checking or hybrid accounts that include a debit card and limited online spending access. These accounts come with more responsibility and should be accompanied by lessons in budgeting, spending limits, and account security.

Top Banks Offering Children’s Savings Accounts

Here are a few popular options (always confirm with the provider as offerings can change):

• Capital One Kids Savings Account – No fees or minimums, solid mobile access, and interest-earning
• Chase First Banking – A parent-managed account tied to the Chase app, designed specifically for kids
• Alliant Credit Union Kids Savings – Offers a higher interest rate with no monthly fees
• Bank of America Minor Savings Account – Accessible, with automatic conversion to an adult account at 18
• Greenlight or GoHenry (debit card apps with savings features) – Great for teens learning budgeting and digital banking

Compare features like interest rates, account access, and parental controls before deciding.

Final Thoughts: A Small Start With Big Impact

Opening a savings account may seem like a simple step, but for a child, it’s a giant leap into understanding money. It teaches discipline, planning, and confidence. Most importantly, it builds a foundation for financial independence that can last a lifetime.

By guiding your child through banking for minors, encouraging smart decisions, and celebrating every saving milestone, you’re not just putting away dollars—you’re investing in your child’s future.