Saving money can start at any age. Some parents want to begin teaching their children healthy money management skills and habits at a young age and provide an allowance and/or small avenues for making money. Some of the money earned can then be saved for bigger purchases in the future. One of the most popular investment opportunities for children is a savings account. Many banks offer these accounts for children and feature low deposit minimums to encourage young people to get into banking and saving. Most children's savings accounts are very similar, but there are still differences to examine before opening a new account.
Step 1
Call or visit different banks in your area and ask if they feature savings accounts for children. If they do, you should ask about the minimum opening deposit, annual percentage yield, and minimum age--if any--before taking the bank into consideration. The minimum opening deposit will help determine what accounts your child is eligible for, and asking about the APY will let you get the best interest rate. You should also ask what fees, if any, are involved with the account. Some banks feature accounts for children without any fees, while others may want to charge various fees in an effort to make money off an account featuring very little money.
Step 2
Select the bank account that best suits your child and visit the bank in person along with your child. This helps your child to understand where the money will be stored and help visualize their understanding of the banking system. Some banks also feature visual aids, such as posters, to help children understand where their money will be going.
Step 3
Sit down with a banker and fill out the necessary forms required to open a bank account for your child. You will have to provide personal information for your child, including their date of birth and Social Security Number. Some banks may also request to see the child's Social Security card as a form of identification. Lastly, you and your child will both sign the application form for an account--your signature will be required because all bank accounts must be attributed to an adult, even if they are a children's savings account. This holds you responsible for whatever happens in association with the account.
Step 4
Fill out a deposit slip provided by the banker. It will ask for the amount of the opening deposit you are making. Return the deposit slip and the money to the banker to be credited to your account.
Step 5
Review and take home any pamphlets or handouts associated with the account. These materials can help answer questions as they arise and further help your child understand the new savings account.
Tips and Warnings
- Many parents prefer to open their child's savings account at their own bank, eliminating the need to make special trips to a new location. However, you should still check your bank's policies before making any investments to avoid losing money through the account.
Things You'll Need
- Child's Social Security card
- Opening deposit money
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