A savings account is a good next step once kids can count money and wait for a goal. They see balances grow and learn about interest.
Compare
- Monthly fees and minimum balances (look for none)
- Interest rate
- Whether the account is FDIC-insured (banks) or NCUA-insured (credit unions)
- Parent controls and app access for teens
- Fees for debit cards or ATMs
Types of accounts
- Joint savings accounts for minors, owned with a parent
- Custodial accounts, where the money legally belongs to the child
- Teen checking accounts with a debit card and parental controls
Make it a habit
Visit or check the account together each month and talk about how the balance changed.
General educational information, not financial advice. Your Money Stretcher isn't paid by any bank, lender or company mentioned here.