How to Open a Bank Account for Your Teenager

There's nothing like a bank account to help teenagers understand the value of money. And with people paying for everything from babysitting to lawn care with online apps, cash isn’t exactly king anymore. 

If your teen is earning money, they’ll need a place to put it. Here's how to get started. 

Look for Banks With Teen or Student Accounts

When you’re figuring out how to open a bank account for a minor, the first step is to find banks with options for young people. If your bank has that option, that could be a good place to start since you’re familiar with how they operate. If not, you can check other banks in your area if having a brick-and-mortar location is important to you. You can also find online banks with teen accounts. 

How old do you have to be to open a bank account? Many banks allow teens as young as 13 or 14 to open a bank account and some are designed for kids as young as 8. 

Find the Features Your Child Wants and Needs

Your child or teen is probably going to bank almost exclusively online, most likely with their phone. So, you’ll want an account that has a well-designed app that’s easy for your child to understand and use.

Your teen will probably want a debit card so they can make purchases at stores and restaurants. Most teen checking accounts include debit cards, so those can be options for kids aged 8 and older. 

A way to transfer money to others is also a desirable feature. Many banks offer Zelle, and your child may also be able to link their account to other peer-to-peer transfer apps and services like Venmo, PayPal or Cash App. 

Check the Parental Controls

Teen bank accounts require a co-signer, and as a parent of a teen, that will probably be you. So, you should carefully review the account terms to see what your teen is allowed to do. 

Young people are learning how to manage money, and they’re likely to make mistakes along the way. You may want an account where you can:

• View activity
• Set limits
• Get alerts
• Lock a debit card

Teach Your Teen About Finances

In most cases, you’ll want your teen to open two accounts — a checking account, which some banks now call a spending account, and a savings account. As your child starts to manage their own money, you can help them build good habits like resisting spending and putting money away regularly. They can start to build a budget for any expenses they have and learn to save for short-term goals like concert tickets or new shoes as well as longer-term goals like paying toward college.

You’ll want your teen to learn about fraud as well. You’ve almost certainly received spam texts that say things like “Your account is on hold” or “A transfer has been scheduled. Not you?” You know to ignore, filter or block these texts — but does your teen? Be sure they know to talk to you before responding to any messages like these.

As your teen develops financial skills, help them understand the difference between a debit card and a credit card. Your teen may get offers for credit cards as soon as they turn 18, and you won’t be able to supervise their spending. So, it’s important for you to guide them on how to manage their money while you can.

Get the Financial Support You Need

Teens aren’t the only ones who need to understand their financial options. As an adult, you may want to save for vacations, your child’s college education, retirement or other big-ticket expenses. A Farm Bureau financial planner can review your income, expenses and savings and help you create a plan to reach your goals. Schedule a review today.