Money management starts early, and the days of piggy banks are long gone. In today’s digital world, kids need to understand how money moves electronically through bank accounts, apps, and debit cards. While the classic “Spend, Save, Give” model is a great foundation, financial education should go deeper. Early money habits shape not only future financial success, but also how kids manage impulses, emotions, and their overall sense of self-worth.
Custodial savings accounts are common among families, but typically don’t provide the hands-on learning that a spending account can. Since a traditional checking account requires the account holder to be 18 (or have a parent as co-owner), your best option is to open a spending account linked to your own checking account. These accounts help kids build critical skills like goal setting, saving, planning, responsible spending, and online banking.
The good news? Many banks now offer kid-friendly products designed to teach smart spending in a safe, supportive way. When choosing a bank account for your child, here are a few key questions to ask:
- Access: Can your child spend or transfer money without your knowledge? Look for accounts that provide parental oversight while encouraging independence over time.
- Visibility: Can both you and your child monitor account activity? Kids having their own app access builds ownership and good financial habits, but you should still be able to view all activity.
- Independence (with guardrails): Does the account allow your child to manage their money independently, with parental controls in place? Look for customizable features that grow with your child’s needs.
- Fees: How does the bank make its money? Some rely on loan interest, others on account fees. For your child’s account, choose a bank that’s transparent about fees, and ideally, one with minimal or no monthly charges.
- In my opinion, the Chase First Banking Account is one of the best options available today. Designed for kids as young as six, this account has no monthly fee and comes with a debit card that you control. Parents can manage spending categories, set location limits, and approve or decline specific transactions. Kids get their own app access, where they can monitor spending, set savings goals, and even track allowance or chore-based earnings.
- One of the best features of Chase First Banking is that it grows with your child. As they move into high school and college, the account can transition into more advanced options with increased flexibility, helping them continue building strong money habits through every stage of life.
- Teaching kids how to spend money responsibly is just as important as teaching them how to save. With real-world practice and the safety of parental oversight, your child can build financial confidence from a young age. As banking options continue to evolve, stay alert for new tools and features that can help support your child’s financial education.
