Starting a bank account for a child is helpful to teach financial responsibility and money management. Bank accounts can be opened for children of any age, including newborns. Many banks have programs specially designed for children to teach them about money and how to save it. Janet Bodnar, a financial expert with Babycenter website, recommends parents open a bank account when the child is between 8 and 10 years old. At that age, the child is old enough to understand the lessons being taught.
Step 1
Choose a bank to open the account. Although it is convenient to have each member of the family bank at the same place, it's not necessarily a requirement. Compare programs that the banks offer geared toward children and choose the one you feel most comfortable with. Be sure to make a note of any fee's that may be charged on your child's account, interest rates and minimum balance requirements.
Step 2
Take your child with you to the bank to open the account. The Nasdaq website explains that allowing the bank representative to explain the account to the child will allow him to become a part of the process and take more ownership of the account and the experience.
Step 3
Assist your child in filling out the necessary paperwork required to open the account, or fill it out for him if he's not old enough. Present all required documentation, such as the Social Security card and birth certificate, to the representative with the paperwork. As the legal guardian to a minor, you may be required to apply jointly on the account until your child reaches the age of 18.
Step 4
Allow your child to give his initial deposit to the bank associate to finalize the opening of the account. Teach your child how to record the deposit in his savings or checking account register.
Step 5
Set savings goals with your child and make a plan to deposit money frequently into the account. To encourage savings, consider matching your child's savings contributions. Discuss with your child the purpose of the money in the account, and make sure he understands what it is for. Money being saved for a car or for college, for example, cannot be withdrawn to buy a new skateboard or pair of sneakers.
Things You'll Need
- Deposit
- Social Security card
- Birth certificate
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