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Money for Kids: A Fun Guide to Opening a Bank Account

Are you ready to take the next step toward financial independence? Then it's time to open a bank account! This is an exciting milestone, but with so many options out there, it can be overwhelming. That's why we've created this fun guide to help you and your kids navigate the world of banking. Here's what to look for when opening a bank account:

Account Options - Which One is Right for You?

There are many types of bank accounts out there, so it's important to choose the one that's right for you. Let's take a look at some of the most common options.

Opening a Bank Account

Savings Accounts for Kids

A savings account is a great option if you want to earn interest on your money. Interest is like free money that the bank gives you for keeping your money with them. Plus, savings accounts are usually free and easy to use. However, they may have limits on how many withdrawals you can make per month.

Checking Accounts for Kids

Checking accounts are great for everyday use, like paying bills or making purchases. They usually come with a debit card, which is like a plastic version of cash that you can use to make purchases or withdraw money from ATMs. However, some checking accounts may have fees, so it's important to read the fine print.

Joint Accounts

A joint account is one that is shared between two people, usually a parent and a child. This can be a great way to teach kids about money management, as they can see their money grow and learn to budget with the help of their parents. However, it's important to remember that both parties have access to the account, so it's important to communicate and trust each other.

Student Bank Accounts

Many banks offer special accounts for students, which may have benefits like lower fees or interest rates. These accounts are usually designed for teens or young adults and can be a great way to start building credit.

Money Market Accounts

A money market account is similar to a savings account but usually requires a higher minimum balance. In return, they offer higher interest rates. However, they may also have more restrictions on withdrawals.

Fees and Minimum Balances - What to Watch Out For

While many bank accounts are free, some may have fees or minimum balances. It's important to read the fine print and understand what you're signing up for.


Some common fees to watch out for include monthly maintenance fees, ATM fees, and overdraft fees. Monthly maintenance fees are charged just for having the account, while ATM fees may be charged if you use an ATM that isn't affiliated with your bank. Overdraft fees are charged if you spend more money than you have in your account.

Minimum Balances

Some accounts may require a minimum balance to avoid fees. This means that you need to keep a certain amount of money in your account at all times. If you dip below this amount, you may be charged a fee.

Convenience and Accessibility - Where to Bank

When choosing a bank, it's important to consider convenience and accessibility. Here are some things to keep in mind.

Location, location, location!

Choose a bank that is close to your home or school, so you can easily make deposits or withdrawals. You may also want to consider if they have multiple locations, in case you move or travel.

Online Banking

Many banks now offer online banking, which allows you to manage your account from anywhere with an internet connection. This can be convenient for checking your balance, transferring money, or paying bills.

Mobile Banking

Mobile banking is like online banking but on your phone. This can be great for:

- Checking your account balance on the go: If you're out shopping with your friends and want to know how much money you have in your account before making a purchase, you can easily check your account balance using your mobile banking app.

- Depositing checks: Instead of going to the bank to deposit a check, you can use your mobile banking app to take a picture of the check and deposit it directly into your account.

- Transferring money: If you owe your friend some money for the pizza you shared last night, you can quickly transfer the money to their account using your mobile banking app.

- Paying bills: You can use your mobile banking app to pay your bills, such as your phone bill, electricity bill, or even your allowance to your parents.

- Setting up alerts: You can set up alerts on your mobile banking app to notify you when you receive a deposit, make a purchase, or when your account balance falls below a certain amount.

Mobile banking is convenient, easy to use, and can save you a lot of time. However, it's important to make sure that you're using a secure network and that you're protecting your personal information when using mobile banking. Always remember to log out of your account when you're done and never share your login credentials with anyone.

Choosing the Right Bank Account

Choosing the right bank account is important because it can help you save money and reach your financial goals. Here are some things to consider when choosing a bank account:

- Fees: Some bank accounts charge monthly maintenance fees or ATM fees. Look for an account that has little or no fees.

- Minimum balance requirements: Some bank accounts require you to keep a certain amount of money in your account at all times. Make sure you can meet the minimum balance requirement before opening an account.

- Interest rates: Some bank accounts pay interest on your balance. Look for an account with a high-interest rate so that your money can grow over time.

- Accessibility: Make sure the bank has a convenient location and hours of operation. Also, consider whether the bank offers online and mobile banking options.

- Services: Some banks offer additional services such as financial planning, investment advice, and credit cards. Consider whether you may need these services in the future.

Opening a Bank Account

When you're ready to open a bank account, you'll need to follow these steps:

- Choose the right bank: Consider the factors mentioned above when choosing a bank.

- Gather your information: You'll need to provide personal information such as your name, date of birth, and social security number.

- Choose the right account: Decide which type of account you want to open, such as a checking or savings account.

- Fill out the application: You'll need to fill out an application and provide the required documentation.

- Fund the account: You'll need to make an initial deposit to open the account.

- Activate the account: Once your application is approved and your account is funded, you'll be able to start using your new account.

Remember to read the terms and conditions carefully before opening an account, and always keep track of your account activity to avoid any unwanted fees or charges.

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