A piggy bank is enough for young kids. A real bank account makes sense when your child handles larger amounts, gets an allowance by transfer, or earns money from chores and first jobs.
The account is a teaching tool. The habit of moving money to savings on payday matters more than chasing the highest interest rate on a small balance.
When to open an account
Ages 8–12: a youth savings account works well with allowance splits and goal-based saving. Kids can see balance grow online with you.
Ages 13–17: add a debit card with limits when they have predictable spending. Review transactions together weekly at first.
Custodial, joint, and youth accounts
Custodial accounts (often labeled UTMA/UGMA savings) belong to the child but you control them until adulthood. Good for money that is legally the child's, like gift money or earnings.
Joint parent-child accounts let you both access funds. Read the fine print: some banks give the child full withdrawal rights at a certain age.
Many banks and credit unions offer youth or teen packages with no monthly fee, low minimums, and parental alerts. Compare fees, ATM access, and mobile app quality.
What to look for
FDIC or NCUA insurance up to federal limits. Avoid accounts that are not clearly insured.
No or low monthly fees. A $5 fee wipes out interest on a $200 balance.
Parental controls: spending limits, transaction alerts, and the ability to freeze a lost debit card from your phone.
Easy transfers from your checking for allowance. Automation reduces nagging and missed paydays.
Using the account to teach
Name goals in the app or on paper: headphones, camp, car fund. Use the savings goal calculator to pick a weekly amount and target date.
Separate spending money from savings. Many families use two accounts or sub-accounts: one for everyday spending, one that is harder to tap.
Let kids make small mistakes. A $12 impulse buy teaches more than you blocking every purchase.
Next steps
Pick one bank, open a savings account, and fund the first goal together. When balances grow past a few thousand dollars or the timeline is 5+ years, read the guide on investment accounts for kids.