How to Set Up a Bank Account for a Child
The earlier you start teaching your child about financial responsibilities and money management the stronger these qualities will be instilled in him as he grows and matures into adulthood. One way to help teach money management skills is to set up a bank account for your child. If your child is under the age of 18 or 21 (depending upon your state) you can open up the account for him. If your child is old enough to understand what is going on, you can also let him experience the process.
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Instructions
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Explain to your child the importance and the benefits of having a bank account. After the conversation, your child should walk away knowing how to handle his account wisely, how he earns money by allowing the bank to hold his money, how he should deposit a percentage of his allowance into his bank account, and how he should only withdraw money when absolutely necessary so his money can continue to grow.
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Compare interest rates and other features that are offered by local banks for juvenile accounts. Because you are essentially teaching your child how to manage and save money, look for banks that don't charge monthly fees, banks that are FDIC insured and banks that yield high interest rates.
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Visit a local bank that has the features you want in your child's bank account. Take your child with you so he can enjoy the thrill of opening his first bank account.
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Complete the new-account paperwork to open the bank account for your child. If your child is under 16, consider opening a savings account only. You can always add a checking account later, as the child becomes more mature and responsible.
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Add your name on the account paperwork as an authorized user on the child's account. This will ensure that you can access and help manage the account, as needed, for your child.
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Submit an opening deposit for the account. Allow the child to give the deposit to the bank representative and receive his receipt for the deposit.
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References
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