Do your children have their own bank accounts?

[Susan in TN]

My ds is 15 today and he asked if he could get his own bank account. He doesn't have a "regular" job, but has saved up quite a bit of money from odd jobs at our house and birthday money. I do think he is mature and responsible enough to handle this.

 

Just wondering what kind of account would be best, what kind of safety precautions are warrented, etc.

[NanceXToo]

Mine's only 9 1/2 and she doesn't have one (nor has she asked for one) but if she got to be like 12, 13 or so and she asked for a bank account, I would let her start her own savings account. You don't even need a minimum for a kid's savings account, I don't think. And they can accrue interest and will get statements telling them what they've accrued, I'm sure it's very educational :D

 

ETA: Happy birthday to your son!

[patchfire]

My oldest (almost 10) just recently got a savings account. She, of course, promptly asked when she could have "that other kind of account." I told her we'd look at it around 14, though I would prefer it if she could have an ATM card without it also being a debit card, at least at first. I think a bank account in the teen years is a good practice for adulthood while the stakes are relatively low.

[Big Buckin' Longhorn]

My son, who's 17, has had a regular checking account since he was about 14, I think. He cuts yards in the neighborhood and usually gets cash for birthdays and stuff. He had too much money laying around to just keep in his wallet.

 

We just opened it up at the same bank we bank at. I have to have my name on it too since he's a minor, but when he turns 18, I'll take my name off of it.

 

He likes to shop at Amazon (don't we all) and other online stores, so having a debit card is nice. Also his money seems to last longer when he doesn't physically have it on him.

 

I like he'll already have been balancing a checkbook for several years by the time he is out on his own.

[KS_]

My kids have had their own accounts since they were very small. Ds since he was 1 or 2 and dd shortly after she was born. My grandpa gives his kids/grandkids/greatgrandkids money for birthdays and Christmas, and that money has always gone into my dc's saving accounts. At this point, it's only a savings account and they've been told all along that this money was for the future (college, a house, etc.).

 

When they get older and get a job, I plan to add a checking account.

[BridgeTea]

My daughter (11) has a savings account. She makes money pet-sitting for a few families and finds things to save up for, so the account gives her a place to put her money until she needs it. She fills out her own deposit and withdrawal slips, and knows how to handle the statements that come in the mail.

 

My kids all got plenty of practice paying bills and balancing the checkbook on Mom and Dad's account first, then got their own checking account when they held regular jobs. If they were minors at the time, Mom's name went on as joint account holder. (I've always had the kids sit in on meetings with mortgage loan officers, accountants, and the financial advisor, also. Takes the mystery out and helps teach them what questions to ask.)

[Geek]

My kids have had their own accounts since they were very small. [snip]

 

When they get older and get a job, I plan to add a checking account.

Same here. We opened up TUTMA accounts for them within days of each birth.

 

We'll attach a checking account when their income warrants it.

[AngieW in Texas]

All three of our kids have had minor savings accounts since they were very tiny. Those aren't really their accounts though. That's money that we've saved up to give to them when they leave home.

 

Our bank offers teen checking/savings accounts for 13-18yo. The account is linked to ours. It doesn't have any fees. Money cannot be withdrawn from savings without parent approval. At 18yo, the account becomes a college-bound account. At that point, the savings account is unlocked. The account is no longer linked to the parent's acccount. It has minimal fees that can be waived pretty easily.

 

My kids get accounts as soon as they turn 13yo. I transfer allowance money over monthly (much easier than keeping cash on hand). I have just 11 more months to wait before my youngest is finally able to get her account.

[Plucky]

My kids get checking/savings accts. around 12. We are on their accts. as well. My 16 & 13 year olds have debit cards and manage their acct. online. It is a great learning experience.

[Jen500]

My kids get savings accounts around k/1st grade.

[HRAAB]

All my children have had a savings account since they were young. When my oldest (16 yrs) started working she wanted a checking account. We were told she couldn't have one in her name only until she was 18, so I put my name on her account, but she was responsible for it.

[StephanieZ]

Our 13 year old does have her own bank account, but it is savings only. We opened it for her at 12 yo when she had over $1000 saved. She earns quite a bit of $$ regularly playing harp, and frankly we *wanted* her money separate b/c seeing it in our regular accounts would be confusing for me, lol.

 

For our other kids who don't have so much $$ of their "own", I'd still want them to have their own account by age 15 or so, just so they'll get good practice using it before college. I'd say I'd like them to have a debit card and checking account by age 16 to get in the habit of being responsible with it and keeping it balanced. I'll want them to have a paypal account and credit card for a year or so before leaving home as well.

[Jennifer in MI]

We just opened an account with a debit card for our 14 yo. He has a regular job and earns quite a bit of money. It's nice that he can pay for things by himself and not have to pay us back.

[Wyndie]

My kids have had their own accounts since they were very small. Ds since he was 1 or 2 and dd shortly after she was born. My grandpa gives his kids/grandkids/greatgrandkids money for birthdays and Christmas, and that money has always gone into my dc's saving accounts. At this point, it's only a savings account and they've been told all along that this money was for the future (college, a house, etc.).

 

When they get older and get a job, I plan to add a checking account.

 

Same here.

[rafiki]

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[Guest Virginia Dawn]

My children get a savings account, with my husband as co-owner, the year they are born. The money trickles in untill they start making money on their own then we encourage them to make deposits as it accumulates. When they get a regular paying job, about 16yo, we sign them up for an atm card for their account so they can access their money. That's the way we've always done it and it works fine for us.

[lisamarie]

My kids have had their own accounts since they were very small. Ds since he was 1 or 2 and dd shortly after she was born. My grandpa gives his kids/grandkids/greatgrandkids money for birthdays and Christmas, and that money has always gone into my dc's saving accounts. At this point, it's only a savings account and they've been told all along that this money was for the future (college, a house, etc.).

 

When they get older and get a job, I plan to add a checking account.

 

:iagree: This is what we've done. The kids all have minor savings accounts that I put any gift money into. Occasionally I will use their gift money to buy something they specifically need that is just out of our budget (bunk beds, a bike), but usually all the money goes into their accounts. When they are older I will open joint checking accounts for them with me as a cosigner. This is what my parents did for me and I think it was a great idea.

 

Just a bit of a story to help you decide--my grandparents give equal amounts of money to all their grandkids every holiday. My parents put our money into an account and we knew about it and had access to it for things we needed (mostly clothes). My aunt and uncle chose to not tell their kids about it until they were 18. So when my oldest cousin hit 18 and discovered he had all this money sitting in the bank, he went out and blew it on a truck that he didn't need. He already had a working car that he just didn't like the looks of. My next cousin hit 18 and made similar poor financial choices with her money.

 

My parents also gave us a joint credit card when we hit 16 to buy gas with. I think between these 2 things, and with my parents teaching us about being responsible with our money over the years before we moved out, how to use a credit card responsibly (only for necessities and only if you can pay it off every month), how to manage a checking account, that we were way ahead of the game when we moved out. All 3 of us kids are frugal, money smart, and actually manage the money in our homes. None of us have ever gone into debt outside of a house--we all paid cash for our cars and college. My DH was not taught these things which is surprising because his dad is the most annoyingly frugal person I know. DH is terrible with money and can't be bothered with a budget or paying bills and my BIL and SIL are the same way.

 

All that to say--give the kid a joint checking account with you on it and teach him how to be money smart. Emphasize saving up for his future--as my parents taught, our money was there for a down payment on a house, to give us cushion so the wife could stay home with the kids if she wanted, for a car if needed down the road. It's hard for a 15 yr old to grasp saving for his future, so it's key to teach him now when you still have influence over how he spends his money.

[WishboneDawn]

Mine, almost 12 and 8 will each have one soon.

 

Then we will be able to set up weekly transfers from our account to their for their allowances. That way we won't forget and end up owing them ridiculous amounts of money. :)

[Photo Ninja]

My dc got checking accounts and debit cards about age 14 - 16, depending on the child. My name had to be on the account because they are minors, but they were free accounts. When they turn(ed) 18 I remove my name. No problems. They were transferred into the free college accounts.

 

We opened the checking accounts because my dc were traveling and I didn't want them to need to carry a lot of cash. The debit card solved that problem because they could pay for things that way, and I liked that if there was a need, I could deposit money in their accounts and they would be able to use it. That didn't happen, but I felt better knowing I could do it.

 

My dc have handled their checking accounts well, and realized quickly that swiping that debit card was an easy way to spend more money than they planned. I prefer they learn that lesson early in life.

[Pamela H in Texas]

My children have had their own "savings" acct for years. My daughter got her own everything when she started college full time. My son will get a teen acct when he gets a job and a student acct when/if he starts college full time.

 

There are a number of safeties put in place for student and teen accts which is nice. I don't have anything to do with any of their accts. I feel it's important that they learn naturally and with general guidance (or advice asked for) while they are still at home.

[dirty ethel rackham]

My children get a savings account, with my husband as co-owner, the year they are born. The money trickles in untill they start making money on their own then we encourage them to make deposits as it accumulates. When they get a regular paying job, about 16yo, we sign them up for an atm card for their account so they can access their money. That's the way we've always done it and it works fine for us.

 

Similar thing here. My FIL gives us money when the kids are born to open a savings account. (Since they are minors, I am on the account.) As they get money for gifts and accumulate allowance money, they deposit it. I require that with all money they receive, they bank half, tithe 10% and are free to do what they want with the rest.

 

We have opened a mutual fund account in their names when they get over $1000 in there. Our plan is that the kids get checking accounts with a debit card when they get regular outside jobs. Our oldest will be there soon, we hope. He is not really motivated by money, so we will have to strongly encourage that:).

[JFSinIL]

Yes, but the bank has me as custodian on the account since the kids are minors. Just a couple weeks ago I went in with ds, 18 now, and switched him to a student account of his very own.

[MissKNG]

Yes, both girls have junior savings accounts.

[Hannah C.]

I got a checking account at 16, when I got my first job. At the time, the rules said that I wasn't supposed to have a full checking account as a minor. However, my mom also put her name on the account and so I ended up with a full, adult account complete with debit card. However, when we wanted to have my mom removed from the account after I turned 18 we were told that wouldn't be possible.

 

I still have that account, actually..I keep it open just in case I need to transfer money to my mom or she to me. I got my own account by myself after I turned 18.

[DarlaS]

I just took my youngest two to the bank to open their first savings accounts yesterday.

 

My older two have had theirs for years--probably since they were about 5 & 8.

[JFSinIL]

I got a checking account at 16, when I got my first job. At the time, the rules said that I wasn't supposed to have a full checking account as a minor. However, my mom also put her name on the account and so I ended up with a full, adult account complete with debit card. However, when we wanted to have my mom removed from the account after I turned 18 we were told that wouldn't be possible.

 

I still have that account, actually..I keep it open just in case I need to transfer money to my mom or she to me. I got my own account by myself after I turned 18.

 

H'mm... I think you (and your mom) would have had to close that account and then open a new one in your name only. That is what ds and I did a short time ago.

[Photo Ninja]

H'mm... I think you (and your mom) would have had to close that account and then open a new one in your name only. That is what ds and I did a short time ago.

 

That is what has to happen. Banking rules changed (according to our bank) and they are not allowed to just remove one name from an account. When I wanted to remove my name from my oldest dc's accounts the bank just closed out those accounts and opened new, free college accounts.

 

That's all you need to do.

[AnitaMcC]

My ds is 15 today and he asked if he could get his own bank account. He doesn't have a "regular" job, but has saved up quite a bit of money from odd jobs at our house and birthday money. I do think he is mature and responsible enough to handle this.

 

Just wondering what kind of account would be best, what kind of safety precautions are warrented, etc.

 

My 15 yr old twins have a student checking account (with me as a joint holder) since they were 14. They have checks and a visa check card for purchasing things.

 

My 11yr old also has the student checking account. I have his visa check card... but didn't get it activated.

 

All my kids have a minor child savings account with me as a joint holder.

[elise1mds]

My kids have had savings accounts since they were tiny. My grandmother sends them money for their birthdays, and it's quite a bit. She wants me to buy them gifts with it, but they already have more than enough "stuff," so I save it for them. I also insist they save half their allowance, and once a year I split all our saved change 50/50 between them. Our bank requires an adult to be on a 'minor' account, so I get all the statements and can change the account at will. The kids have to have my permission to change anything, so they can't close it or make account transfers without my permission, for example.

 

This might be completely crazy-sounding, but you never know how handy a cushy savings account may be when they get older. I got married when I was 18. I was NOT planning on that. I had scholarships to several excellent colleges and was planning to become a journalist. However, the only thing that carried us through the first few months till DH got a job (immigration issues... long story) was my savings and checking accounts that I had saved my money in. I'm not saying - or hoping - that your child will ever NEED the savings, but it's very handy to have. :)

[Kate CA]

My ds is 15 today and he asked if he could get his own bank account. He doesn't have a "regular" job, but has saved up quite a bit of money from odd jobs at our house and birthday money. I do think he is mature and responsible enough to handle this.

 

Just wondering what kind of account would be best, what kind of safety precautions are warrented, etc.

 

Yes, all five do. They have savings accounts through Schools Credit Union at a really great APR. I will allow my older two to have checking accounts when it is necessary that they do. I think I had my first one around 15 or so because I had a job.

[IsabelC]

My 7yo has his own bank account, which he has completely control over.

The girls will get a bank account at the same time that they start receiving pocket money. (We don't determine this by age: it's when they are able to show a basic understanding of how money works and can work out the cost of something and the correct change.)

[nono]

 

This might be completely crazy-sounding, but you never know how handy a cushy savings account may be when they get older. I got married when I was 18. I was NOT planning on that. I had scholarships to several excellent colleges and was planning to become a journalist. However, the only thing that carried us through the first few months till DH got a job (immigration issues... long story) was my savings and checking accounts that I had saved my money in. I'm not saying - or hoping - that your child will ever NEED the savings, but it's very handy to have. :)

 

Yes, and if something would ever happen to my husband and me, my kids will always know that we were thinking ahead for them and trying to prepare for their adult life's bumps. I can still lead by example even if I'm not there.

 

Our children get x dollars each a pay period from us put away into their accounts. Even when times are tight.

[Hikin' Mama]

and when they turn 16 they get a checking account. At 16 they also get a monthly sum for the things we were paying for anyway, and they have to learn to budget it. It was wonderful for our oldest who always wanted me to spend more on things than I was willing. My second child is not 16 yet, but we will do the same for him, as well as for my daughter when she reaches that age.

 

ETA They aren't allowed to take money out of savings without our permission, but the checking account is totally at their own discretion.

Edited July 1, 2010 by Hikin' Mama
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[Tutor]

Same here. We opened up TUTMA accounts for them within days of each birth.

 

We'll attach a checking account when their income warrants it.

 

 

This has been our MO/ plan as well.

[Susan in TN]

Yes, and if something would ever happen to my husband and me, my kids will always know that we were thinking ahead for them and trying to prepare for their adult life's bumps. I can still lead by example even if I'm not there.

 

Our children get x dollars each a pay period from us put away into their accounts. Even when times are tight.

 

This is a neat idea - kind of like an emergency fund. What a great gift to give a child!

[QueenCat]

The only bad part about it being in their name is when its time to apply for financial aid in college. A much higher percentage of what is in their name is assumed by FAFSA and colleges to be available to pay towards college.

[jewellsmommy]

Dd has a savings account.

[babysparkler]

My kids have had their own accounts since they were very small. Ds since he was 1 or 2 and dd shortly after she was born. My grandpa gives his kids/grandkids/greatgrandkids money for birthdays and Christmas, and that money has always gone into my dc's saving accounts. At this point, it's only a savings account and they've been told all along that this money was for the future (college, a house, etc.).

 

When they get older and get a job, I plan to add a checking account.

 

This is what we do as well.

[tiffijo1]

My daughter is 13 and she has an account. I am on the account and it's worked great. We are able to look at her account online. She also has a debit card which is nice when she is shopping with friends...no losing cash. My younger daughters have check book registers...we have them add their allowance and then subtract items that they want to purchase. This check book register is linked to no account. My husband and I use our account but it is preparing them for the future.

[ereks mom]

...account last week. We started the savings accounts for them when they were babies because the grandparents started sending money for birthdays and other special occasions even before the dc were old enough to spend it. They each have only a couple hundred dollars in there now, but they've occasionally drawn some out for certain things--such as when ER contributed most of his savings when we bought his car a couple of years ago.

[flobee76]

As soon as our kids were born, we opened up savings accts. for them. We have automatic deposits into them scheduled each month from DH's paycheck. Plus, if they receive money for bdays, Christmas, etc., a small portion gets put aside for spending, then the rest gets put in their accts. COLLEGE $$, baby!

 

I had my own checking acct after I started working, that was in highschool.

 

Once our kids start working or have odd jobs (babysitting, dog walking, mowing lawns, etc.), they can open up their own checking accts. :001_smile:

[BikeBookBread]

Yes. We opened USAA savings accounts for both girls. We transfer a very modest amount into their savings each and every paycheck. It's quite amazing what a little bit will do over time. We plan on taking the sums and buying a long-term CD once a certain denomination threshold is reached, or perhaps an education IRA. Our goal at this time is NOT to use the funds for education (we have 9/11 GI Bill) but to somehow parlay the funds into a more-long-term investment for them. You can't buy "retirement" accounts for children, so we're trying to figure out a workaround.