Teaching financial responsibility with youth accounts.
Teaching financial literacy at an early age is one of the most valuable lessons you can convey to your child. It gives them the opportunity to get set up for success, all while nurturing key money management skills and encouraging financial responsibility.
A great way to do this is by opening a youth bank account, but where do you even start? In this article, we’ll explore what a youth bank account is, how to open a youth bank account, the different types, when to consider opening one, and the perks of introducing banking to children early.
What is a youth bank account?
A youth bank account is designed specifically for children, teens, and young adults, offering an introductory gateway into the world of finances. These accounts generally include lower fees, simpler features, and added safeguards to ensure responsible usage.
What age can a child open a bank account?
At Clearview, we have three youth bank account options available for our youngest members:
- Our Start Savings account is designed for members under 18 years old, and combines powerful earning potential with educational tools that make saving both rewarding and fun.
- Once your child turns 18 and begins their journey into adulthood, they can graduate to our Next Step Savings account and continue their strong financial habits no matter where their next life adventure takes them.
- Our Smart Spending account is a great checking account option that grows with your child, no matter if they’re making their first big purchase or planning their college expenses.
If the child is younger than 18 years old, the youth bank account can be co-owned by a parent or guardian, allowing you to oversee your child’s financial activities while also giving them the chance to learn how to manage money independently.
After their 18th birthday, there is always the option to remove that joint ownership.
When should I open a bank account for my child?
According to an article by Forbes, as soon as your child starts receiving money, parents should consider opening an account. Consider depositing the money your child receives for their first few birthdays or as holiday gifts into their own savings account. Don’t forget that a little bit of saving now can have a big impact over time!
When your child is older, you can start exploring the idea of getting them set up with a checking account and debit card. Again, having joint ownership will not only give them the freedom to learn, but also give you peace of mind.
What are the perks to opening up a youth bank account?
Introducing your child to the world of personal finances through a youth bank account comes with several perks that can positively impact their overall development. These perks include:- Gaining positive money management skills with a youth checking account.
- Implementing life-long savings habits with a youth savings account.
- Building overall financial literacy and confidence.
- Strengthening your parent-child bond by being able to teach, guide, and celebrate their financial milestones in a hands-on way.
How to open a youth bank account
Opening a youth bank account is more than just a financial decision—it’s an investment in your child’s future. If you’re ready to get started, contact us today to get your child set up with an account that will grow with them! Together, we can ensure the next generation is financially empowered for their journey ahead.