How to open a child’s first checking account

Children grow up fast. One day you’re buckling them into a car seat, and the next you’re handing them the keys. Like learning to drive or taking on a first job, managing a checking account is a big milestone that teaches responsibility and will help your child learn important financial habits.

Parents often ask about how to open a child’s first checking account. Many checking accounts are for adults aged 18 and up, so you can help your kid set up their own account when they are heading off to college or starting their career. If you’re interested in opening your child’s first checking account when they are younger, you could consider opening a joint checking account that you share. Note that for some checking accounts you must be at least 18 years old to be added to the account as a joint account holder.

“Is your teen interested in managing money, saving for different goals and spending on their own?” asks Kimberly Palmer, a personal finance expert. If so, a checking account can be a great way to flex those skills and practice money management, she adds.

Whether it’s a joint account you help manage or an account for your older teen, consider the following four tips first:

Whether you’re going to open a child’s bank account online or in a brick-and-mortar bank, it’s important to understand the fees that come with the account and who is responsible for paying them, says Mia Taylor, a financial journalist. Your child may think you are covering the fees if you have a joint account, for example. So be clear who’s responsible for what when you open the checking account.

If you’re wondering how to open a child’s first checking account for kids going to college or starting their first job, “look for an account with no minimum balance fees or monthly balance fees,” Palmer says. That way, your child won’t have to worry about low balance penalties or stress about fees.

Teaching your kids to manage money can be easier when monthly fees or minimum balance requirements aren’t getting in the way of their progress. Capital One MONEY Teen Checking accounts are fee-free: Add in no minimum balance requirements and you have more money in your wallet.

If you’re setting up a checking account for a kid heading off to college or moving to a new city, you’ll also want to consider the fees that come with withdrawing cash from out-of-network ATMs. You can use a bank’s ATM locator to make sure there are no-fee ATMs near their college campus or apartment. Finding a place to withdraw money is a breeze with Capital One since you have access to over 70,000 fee-free Capital One and partner ATMs.

Choosing the right checking account for your child’s lifestyle may mean finding an account that has features that support their needs and goals, as well as your preferences.

If you are opening your child’s first checking account and they are younger and sharing the account with you, you may want the ability to set limits on spending and the number of withdrawals. “Parents and teens may have different preferences for each of these features. So it’s important to talk about what you’re looking for ahead of time and compare the different options together,” Palmer says.

If you have a joint account with your child, you could also consider setting up email or text alerts for every transaction or every large transaction over a certain dollar amount. This may help you keep better track of your child’s spending habits and could help you have conversations about how to create a budget. Setting up a low balance notification may also be wise when you open a child’s bank account online. This can help avoid overdraft fees (charged when they spend more than their balance) and insufficient funds fees (charged when a transaction is declined because there’s not enough money in the account).

It’s no shock that today’s kids are experts at navigating a smartphone. As you make plans to open a child’s bank account online, be sure to consider whether the checking account has a mobile app for making deposits and tracking funds, Taylor says. You can easily keep tabs on your MONEY Teen Checking account with a top-rated mobile app.

“Mobile deposits are a huge convenience factor for teens,” Taylor says, since it allows them to deposit checks with the snap of a photo. Be sure to also research the app’s functionality (the easier, the better) and security, Palmer adds.

Tracking spending with a pen and paper may feel boring to digital natives, so talk with your child about how they can sync their checking account with other budgeting and spending apps. Your child may also be interested in sending and receiving money with friends via digital wallet apps, but you may want to provide guidelines when opening your child’s first checking account.

“Only send money to people you know, not to strangers,” Palmer suggests.

Even though digital wallets can be convenient for older teens, Taylor says you may not want to overcomplicate a checking account for a younger child. “Keep it simple in the beginning,” she says. “As teens get older, they can add those features on their own.”

Good financial habits are learned early and remembered for decades. That’s why the most important thing parents can do when opening your child’s first checking account is to use the account to have discussions about money, Palmer says.

“Ask them what they want to save for, what kinds of items they hope to buy and what—if any—money they would like to donate to a cause that’s important to them,” Palmer says. “A checking account is a useful way to plan for future expenses and savings goals—all lessons that carry into adulthood.”

A great way to pass on money management lessons is to show your children how you manage your own account.

“Sit them down and show them what you’re doing with your own checking account so that you can pass on good values early on,” Taylor says. “The earlier you start with kids, the wiser they will be.”

Opening a child’s first checking account can help kids learn how to manage money and build financial confidence. By choosing the right account and using it as a teaching tool, parents can help children develop healthy financial habits.

Now that you know how to open a child’s first checking account, here are some things to keep in mind before you take this step:

• Compare account options before opening one for your child, paying attention to fees, features and tools that fit your family’s needs.

• Be sure to help your child get comfortable with money management tools like debit cards, mobile banking and direct deposits once the account is set up.

• Talk through account expectations with your child, including spending limits, saving goals and how you’ll manage the account together.

There are no fees to open, maintain or use your MONEY Teen Checking debit card, helping your kids keep more of their own money.