Tips for Choosing a Teen Bank Account

Your kids may have some money that you put away in a savings account, but it is good to teach them about investing and saving. One thing that is important to learn how to manage a checking account.

In this  guide we will breakdown tips for choosing a teen bank account and everything you need to know.

Keep in Mind This Will Be a Joint Account

Because a teenager is a minor, an adult will need to be apart of the account as well in case any overdraft fees occur. This account will be a joint account and you will also have access to your kids funds and debit history.

With a joint account it gives the  opportunity for a parent to teach a teen financial responsibility while also remaining in control.

Frequently Asked  Questions About  Teen Checking

Here are a list off common questions with answers regarding Teen Checking Accounts:

• Q: Does the account come with spending limits?
  • A: Some banks will have daily spending  limits, however each bank is different so be sure to check with your bank about their  spending  limits.
• Q: What happens when a teen ages out of the account?
  • A: After the teen becomes an adult, he or she will have to decide whether to keep the new account or make the switch to another bank.
• Q: Can a parent set other restrictions?
  • A: You will be able to set spending  limits and restrictions on the account  if needed.

Find Teen-Friendly Features

Here are  some features that you should consider checking to see if the teen checking account has:

• Mobile and Text Banking: To have 24/7 access of your funds on your phone
• P2P Mobile Pay: To exchange money with other people
• Educational Tools: To help give saving advice or spending tracker

Avoid Overdraft Fees

One thing that you should teach your teen is to check their account balance frequently. By knowing  there account balance, they can avoid simple overdraft fees. A teen checking account with overdraft protection means either the bank will cover the expense or that the checking account will be linked to your savings or other checking account.

If you do not sign up for overdraft protection, then that means if you have no funds, then your charge will be declined. Choosing the right teen checking account can minimize your fees, and is a small price to pay for valuable financial education.

Author’s Verdict

Choosing a bank account for your teen really isn’t that different from finding an account for yourself. The most important things to keep in mind are what benefits an account offers, as well as what the accompanying costs may be. Guiding your child through the process of setting up an account and teaching them how to use it can get them off to a solid start in their financial life.

Let us know in the comment section below if it did! If you don’t have a savings account, see our best savings account section. Looking to add a little extra income each year? If so, see our list of the best bank deals!