Thinking of preparing your child or teenager for a bank account? It's crucial to show kids and teens the value of a dollar and introduce them to the basics of banking. If your child is getting birthday money, starting a part-time job, or ready to learn about budgeting, this is a great starting point. Both checking and savings accounts are great for learning. However, each one has a different role in a child's financial life.  

We’ll break down the key differences between kids’ checking and savings accounts, explore the benefits of each, and highlight how parental involvement plays a crucial role in guiding young account holders toward smart money habits.

Age Requirements for Kids' Bank Accounts

Most banks allow teens to have a checking account at 13 years and older, but only if a parent or guardian is a joint owner. Joint ownership ensures that the adult will be in control of the account and gives the ability to manage it alongside the child. Some banks offer special accounts for younger children, but they do contain tighter control mechanisms. It's worth inquiring with your bank to find out what their respective age policies are and what is needed to open an account.   

Savings accounts are typically more accessible to children of all ages, with many banks allowing parents to open a custodial or joint savings account for a child as young as a newborn. These accounts help children learn about money management from a young age. Parents usually have control until their child is 18. Kids' savings accounts often require little or no minimum balance. Maspeth Federal Savings’ accounts have no monthly fees, which makes them a great way to start learning about finances.

Some banks also offer educational resources to help young account holders develop financial responsibility. Parents can take advantage of these tools to make the experience both educational and practical for their children.

Differences Between Savings and Checking Accounts

A checking account is geared toward everyday financial activities. It allows for frequent transactions, providing easy access to funds through checks or debit cards. Checking accounts are perfect for teaching kids how to manage day-to-day expenses and understand the flow of money in and out of an account.

A savings account helps kids accumulate money over time. The best savings account for kids will offer competitive interest rates, allowing the balance to grow gradually. Savings accounts are ideal for long-term financial goals, such as saving for a significant investment or future expenses.

Parental Oversight and Control

Many banks provide tools that enable parents to closely monitor their child's account activity. Online banking portals and mobile apps often allow parents to review transactions, check balances, and set spending limits. These features help parents ensure their children are making responsible financial choices and adhering to agreed-upon budgets.  

Some accounts even offer real-time alerts to notify parents if their child is approaching their spending limit or if an unusual transaction occurs, adding an extra layer of security. Additionally, setting up notifications for low balances can teach kids the importance of maintaining a cushion in their accounts. Parental control features can include the ability to freeze the account or restrict certain types of transactions. This level of oversight is particularly useful in preventing impulsive spending and reinforcing financial discipline.  

Benefits of a Checking Account for Kids

A checking account for kids offers practical advantages that extend beyond immediate financial transactions. By managing their own account, children gain firsthand experience in budgeting and tracking their expenditures.

Parents also find value in the transparency that a checking account offers. Being able to see how their children spend money allows parents to provide timely guidance and advice, reinforcing lessons about financial responsibility. This real-world practice helps them grasp the concept of living within their means and prioritizing expenses. Many accounts offer tools like mobile apps and online banking, which helps with tracking balances and transactions easily and in real time.  

Another benefit is the convenience of having a debit card. This allows for cashless transactions, which are increasingly common in today’s digital world. Furthermore, a checking account often serves as a stepping stone to more advanced financial products and services.

This progression helps them adapt to more complex financial responsibilities gradually. By adding a checking or savings account to their child's financial education, parents give kids important skills for adulthood.

Learn more about Maspeth Federal Savings Teen Checking: https://www.maspethfederal.com/personal-banking/checking

Or the Young Savers Club: https://www.maspethfederal.com/personal-banking/savings