Most parents are aware of the importance of teaching a child financial responsibility. Teaching children the importance of money helps them learn to budget and plan for the future. For this reason, some parents choose to open bank accounts, usually savings accounts, for their children. Opening a bank account for your child is typically a simple task, although laws and banking practices vary from state to state.
Step 1
Talk to a bank's branch manager about your state's laws and the bank's practices. Some states allow joint accounts, and others permit banks to ignore "age of majority" laws, which allows you to open the account solely in the child's name, according to the Banking Questions website. Still other states require custodial accounts, which you manage until the child reaches the age of majority.
Step 2
Review and choose from the types of accounts available. Savings accounts are an easy and popular choice, because you and your child can deposit and withdraw money just as you would from your own bank accounts. However, most banks offer low interest rates, which may not represent the best use of your child's money. Ask about other types of accounts, such as high-yield savings and certificate of deposit accounts before making your choice.
If your child is old enough to understand the differences among accounts, involve your child in the selection process to give him a sense of account ownership.
Step 3
Review the account agreement. This will ensure that you are aware of fees and other bank practices that can affect your child's account. Provide the necessary signatures to authorize the opening of the account. Depending on your state's laws and your bank's practices, you, your child or both may have to sign the agreement.
Step 4
Provide the teller with identification information. United States anti-terrorism laws require banks to identify every person who opens an account. If you will be a joint owner or a custodian of the account, you will need to provide your driver's license or other state-issued identification card. You may also need to provide your Social Security identification card.
You will also have to provide the child's Social Security card. If your child is old enough to drive, you may need to provide the child's driver's license as well.
Step 5
Give the teller your opening deposit. Each bank has different requirements for minimum opening deposit amounts. Obtain a receipt for the deposit in case there are any complications with opening the account.
Tips and Warnings
- Involve your child when documenting deposits and withdrawals. Your child will learn how banking works, and will most likely be ready to manage the account herself as she gets older. Purchase a binder for your child after opening the account. This provides a safe place for you and your child to keep and organize bank statements.
Things You'll Need
- Identification card
- Social Security identification card
- Child's Social Security identification card
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