Introduction
In this day and age, no child’s education is considered complete without some financial awareness.
One of the ways that you can start your child down the road to financial literacy is to set them up with a checking account for kids. Unlike most financial products, which can be used exclusively by adults, a kids checking account is designed for use by children and teenagers under the age of majority. With a child checking account, your child can access funds when they need to, and you can manage their spending and place limits on their account as needed.
Every child is different, and it’s up to you to determine if your child is mature enough to manage their own finances. Most banks offer kids checking accounts for minors age 13 or older, but some include accounts for children as young as 6.
Choosing Checking Accounts for Kids
When choosing a checking account for children, you’ll want to make sure the account has a good mix of child-friendly features and adult supervision. Look for accounts that offer simple dashboards and easy-to-read statements. You’ll want an account that allows you to monitor and limit your child’s spending and restrict certain kinds of transactions. Ideally, the bank you use will have a learning center where your children can access articles, videos, games, and quizzes that incentivize them to learn more about finances.
If a child checking account does not sound like the right option for your child, there are other options available that can still help teach your child good financial behaviors. For younger children, giving them an allowance and a piggy bank to save their cash is a good start. For older children, a prepaid debit card which you reload periodically via a bank transfer can give them access to pocket and emergency money. Then, once your child is ready, you’ll be able to set them up with one of the best checking accounts for kids.
Best Checking Accounts for Kids
Chase
The Chase First Banking debit card is made exclusively for teens and kids aged 6 to 17. This child-friendly debit card and checking account is designed to help teach children good money habits. All you need to open a Chase First Banking account is a qualifying adult Chase checking account. You can manage both of your accounts within the Chase mobile app, which makes it easy to monitor your child’s spending and transfer funds between the accounts when necessary.
One of the major benefits of the Chase First Banking account is that it charges no monthly service fees, which means your money goes further. You can set up alerts that tell you when and how your child is spending money, and put limits on where and how much your child can spend. Additionally, the account comes with a debit card that can access no-fee withdrawals at over 16,000 Chase ATMS nationwide.
Greenlight
Greenlight is a banking app that offers a debit card for kids of all ages. With Greenlight, kids can set savings goals and even earn money by doing chores. As a parent, you can access flexible controls that allow you to block unsafe transactions, restrict ATM withdrawals, and turn the card on or off from within the Greenlight app. Additionally, you can get notifications in real time when your child uses their account, so you’ll always know how your child is spending their money.
Access to Greenlight’s core plan costs $4.99/month. For $7.98/month, your kids can also access Greenlight Invest, a platform inside the app where they can learn about investing. Greenlight core and Greenlight Invest users earn 1% interest on savings up to $5,000. Or, for $9.98/month, you get access to Greenlight Max, which includes all of Greenlight’s features plus 2% interest on savings and 1% cash back on purchases per month. Greenlight accounts also benefit from no ATM fees, overdraft fees, trading fees, or commissions.
The Greenlight debit card can be used almost anywhere that accepts Mastercard, whether online or in-store. You can also use the card internationally with no foreign transaction fees. Plus, Greenlight debit cards are FDIC-insured, and you can protect your account with fingerprint or facial recognition safety features.
Copper
Copper is a digital bank that aims to teach teens financial responsibility and good spending habits. With Copper’s banking app and debit card, your teen can shop anywhere that Mastercard is accepted, including online or in-store. As a parent, you can connect accounts for up to five children within the copper app and transfer funds anytime and anywhere.
Copper doesn’t charge any overdraft fees or monthly service fees, require minimum balances, or ask for a credit check. Through the app, you can automate allowance payments, and teens with jobs can access paychecks in only a few days by signing up for direct deposit. While it does not offer cash back on purchases and only provides 0.001% interest on your cash balance, you can use the Copper debit card at over 50,000 ATMs nationwide for free, and deposits with Copper are FDIC-insured. Additionally, Copper offers a range of articles, videos, and quizzes meant to help your teen become more financially savvy.
Visit Copper
Advantages and Disadvantages of Kids Checking Accounts
There are many advantages to opening a checking account for your child. It’s never too early to give your kid a head start on managing their money and a bank account. Operating a checking account helps teach kids about earning interest and the importance of saving. These are essential skills that everyone must learn if they hope to budget for expenses and participate in society.
Best of all, a checking account for kids comes with built-in safeguards that allow you to supervise your child’s spending while also ensuring that your child can make and learn from their mistakes.
However, there are some disadvantages to checking accounts for children. Even the best checking accounts for kids cannot completely protect your child from financial losses or fraud. There’s always the potential that your child spends their funds unwisely or that their financial or personal information gets compromised.
Luckily, most kids checking accounts contain security features to help protect both your child’s information and their money from potential fraudsters. Available security features include protections like spending limits, 2-factor authentication, and spending notifications.
Conclusion
Financial responsibility is one of the best skills that you can teach your child. By investing time in their financial education now, you'll teach them the behaviors they need to manage their spending, build credit, grow their investments, and avoid getting into debt.
Before picking a checking account for your child, make sure that you do your research to ensure that the account you choose has all the features that you’ll need to help you manage your child’s spending.
Thankfully, there’s never been a better time to set your child up for financial success. With so many excellent kids checking accounts, such as those offered by Chase, Copper, and Greenlight, available on the market, you’re sure to find something that fits your needs and your child’s abilities.
Disclaimers
Chase
The Chase First Banking Account is for parents/guardians interested in teaching their child how to manage money using a debit card with the child’s name on it. The parent/guardian is the owner of this account and must have an online profile and one of these other checking accounts at account opening: a Chase Secure CheckingSM, Chase Total Checking®, Chase Premier Plus CheckingSM, Chase SapphireSM Checking, Chase Better Banking® Checking, Chase Premier CheckingSM or a Chase Private Client CheckingSM account. Benefits offered to these checking accounts do not apply to Chase First Checking accounts. Only the parent/guardian who opened the account can fund, view or manage this account. You can open a Chase First Checking account for your child who is 6-17 years old.
The Chase Mobile® app is available for select mobile devices. Enroll in Chase OnlineSM or on the Chase Mobile app. Message and data rates apply.
Account Alerts: There's no charge from Chase, but message and data rates may apply. Delivery of alerts may be delayed for various reasons, including service outages affecting your phone, wireless or internet provider; technology failures; and system capacity limitations. Any time you review your balance, keep in mind it may not reflect all transactions including recent debit card transactions.
Greenlight
Greenlight and Greenlight + Invest families can earn monthly rewards of 1% per annum and Greenlight Max families can earn 2% per annum on an average daily savings balance of up to $5,000 per family. Only Greenlight Max families can earn 1% cash back on spending monthly. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.
© 2022 Greenlight Financial Technology, Inc. Patents Pending. The Greenlight card is issued by Community Federal Savings Bank, member FDIC, pursuant to license by Mastercard International.
