When is it time to get your child a checking account?
When they start receiving an allowance or money from gifts or part-time jobs
This is often the first time children are managing their own money. A checking account can help them keep track of it and make responsible spending decisions.
Many part-time jobs require a checking account for paychecks via direct deposit. Opening a checking account for your child sets them up for success.
Bonus: While having your child’s direct deposit into their checking, you can also set up an automatic transfer to their savings account to help them learn to regularly save a portion of their earned money.
When they show an understanding of budgeting, saving, and spending
It is important that your child understands the concepts of budgeting, saving, and spending before getting a checking account. Otherwise, they may not know how to properly manage their finances.
When they are old enough to handle the responsibility
A checking account comes with responsibilities such as managing deposits and withdrawals, keeping track of transactions, and safeguarding personal information. It is important that your child is mature enough to handle these tasks on their own before getting a checking account.
When your child starts asking about money
When your child starts asking about money, it might be time to start teaching them about financial responsibility and potentially getting them a checking account. This is a great opportunity for you to instill good financial habits in your child and set them up for success in the future.
When they need a debit card for convenience
If your child is participating in activities where they need to make purchases, a checking account with a debit card can provide convenience and ease.
Benefits of your child having a checking account
A checking account can help your child learn how to budget and manage their money
By keeping track of their deposits and withdrawals, a checking account can help your child learn how to budget and manage their money. It also teaches them the importance of saving for future expenses.
A checking account can prepare them for the real world
Managing a checking account provides valuable real-world experience that will benefit your child in the future. It sets them up for success when they start managing their own finances as adults. This includes teaching them things using a debit card and checking their digital banking for their account balance.
It can provide convenience
A checking account with a debit card can make purchases easy and convenient for your child, especially if they are participating in activities that require spending money.
Things to remember before and after opening their account
Make sure they understand the basics of banking and budgeting
Before opening a checking account for your child, make sure they understand the basics of banking and budgeting. This includes things like keeping track of transactions, using ATMs, and keeping personal information safe.
Monitor their spending
It is important to monitor your child's spending habits and make sure they are using their checking account responsibly. This can also serve as an opportunity for you to teach them about responsible spending and saving for future expenses. But, gradually let them manage it on their own as they gain experience and responsibility.
Set guidelines and establish expectations
Establish guidelines and expectations for your child's use of the checking account, including how much money they can spend without consulting with you first.
Overall, there is no set age or time for when your child should get a checking account. It is important to consider factors such as their understanding of budgeting and spending, their maturity level, and if they will benefit from the convenience of a debit card.
But, before and after opening the account, make sure they understand the basics of banking and set guidelines for their spending habits. This will help them learn important financial skills and set them up for success in managing their own finances in the future.