Checking and Savings Accounts for Your Kids: What Parents Should Look For

Opening a bank account for your child might seem like something you can put off, but it’s actually a smart move.

It gives them a chance to learn how to manage money in a low-risk environment where mistakes won’t have serious consequences. The earlier kids start learning about financial responsibility, the more prepared they’ll be later on.

Most children pick up money habits just by watching how we spend, but that doesn’t teach them where money comes from or how to manage it. Giving them access to a checking and savings account helps them build these skills.

Why Start a Bank Account for Your Child?

Building Money Management Habits Early

Helping your child build good money habits early on is one of the best things you can do for their future. When kids have their own bank accounts, they start to understand the difference between saving and spending in a way that talking about it just doesn’t cover.

They see their balance go up when they deposit birthday money or allowance, and they see it go down when they make a purchase. That connection makes money feel real instead of just an idea.

Kids with their own accounts also tend to ask better questions. They might wonder why their savings balance is a little higher this month or why they can't buy something they thought they could afford.

Learning Financial Independence Safely

Having their own accounts gives kids a way to start learning financial independence. They can make small mistakes, like spending too much on something they don’t really want, without it causing any real harm. It’s a lot better for them to learn those lessons with their allowance at age 10 than with their first paycheck at age 22.

Checking vs. Savings Accounts for Kids

What a Checking Account Does for Your Child

A checking account is your child’s main place for everyday spending. It’s where they learn the basics of managing money in real time, like deciding what to buy, keeping track of their spending, and understanding that every purchase reduces their balance.

Using a checking account for daily expenses gives kids instant feedback on their habits, so they can clearly see where their money goes.

How Savings Accounts Help Kids Build Money Over Time

A savings account is designed to help your child grow their money. These accounts usually offer higher interest rates than checking accounts, which gives kids a real example of how saving can earn them more over time.

Watching their balance increase not just from deposits but also from interest helps them understand the power of compound growth. Savings accounts also teach patience and discipline. Kids learn to put money aside for future goals instead of spending everything right away.

Joint Account Requirements for Minors

For children under 17, most banks and credit unions require a joint account with a parent or guardian. This setup lets parents keep an eye on things while still allowing kids to feel ownership over their money.

What to Look for in a Kids' Checking Account

No Account Fees

Try to look for checking accounts that don’t charge monthly fees. Since kids usually keep smaller balances, even a small fee can eat into their money pretty fast.

Plenty of banks and credit unions offer fee-free accounts designed for minors, so there’s no need to settle for one that charges just to keep the account open.

Debit Card Access

A debit card can be one of the most useful features of a kids' checking account. It gives them real-time experience with managing money and making spending decisions. They learn to check their balance before spending and quickly realize that once the money’s gone, it’s gone.

Mobile Banking

Mobile banking is key to helping kids learn how to manage money digitally. Most of their financial life will be online, so it’s best they get familiar with these tools early. Setting up alerts keeps them aware of what’s happening with their account and encourages them to build good habits like checking their balance regularly.

Parental Controls

Parental controls let you set spending limits, block certain types of purchases, and get notifications when the card is used. This gives your child some freedom while still keeping things in check. You can start with more restrictions and ease up as they show they can handle more responsibility.

What to Look for in a Kids' Savings Account

No or Low Fees

When you’re choosing a savings account for your child, fees are probably the first thing you check. You don’t want an account that chips away at their savings with monthly charges or penalties for not keeping a certain balance.

Since kids usually have smaller amounts in their accounts, even a few dollars in fees can cancel out any progress they’re making. Look for accounts made specifically for minors that have no fees or very low ones that won’t discourage them from saving.

Low Minimum Balance Requirements

Minimum balance requirements matter too. Your child might only have $25 from a birthday or allowance, and that should be enough to get started. Some banks require $100 or more just to open an account, which can be tough for younger kids or families working with a tighter budget. A good kids' savings account should make saving feel simple and doable, not like an uphill climb.

Interest-Earning Opportunities

Look for a savings account that earns interest, even if the rate is low. When kids see their money grow, even just a little, it helps them understand that saving can actually lead to earning more over time. Watching compound interest work in their own account makes the concept feel real, not just something they hear about in school.

Parental Oversight Tools

Parental oversight tools are a must for kids’ accounts. You should be able to monitor deposits and withdrawals, set up alerts for activity, and step in if needed. Being involved helps you guide your child through their financial learning while making sure they stay on track.

Benefits of Choosing a Credit Union for Your Kid’s Accounts

Community-Focused Approach

Credit unions are a great option when you’re opening savings or checking accounts for your kid. Unlike big banks, local credit unions focus more on financial education and community support.

That often means better programs and more personal service for young account holders. They’re also more likely to work closely with families and offer guidance instead of just trying to sell products.

Because they take a community-focused approach, credit unions tend to care about the long-term financial success of their members. They want kids to grow up managing money well and sticking with them as adult members, so they’re motivated to offer helpful resources and support along the way.

Special Perks and Programs

A lot of credit unions offer special perks just for kids and teens that you probably won’t see at larger banks like rewards for regular deposits, incentives for good grades, scholarships, or financial literacy events that can make saving more fun and meaningful. These extras help keep kids engaged and give them more chances to learn how money works.

Read more: 5 Financial Topics to Teach Your Kids

Tips for Parents When Opening a Kids' Savings and Checking Account

Involve Your Child in the Process

If you can, take your child with you when opening their account. Being part of the process helps them see that this is their account and their responsibility. They get the chance to ask questions and learn how things work. It also makes the experience more memorable and meaningful for them.

Set Clear Expectations

Be clear about how the account will be used right from the start. Talk about what portion of their allowance or gift money should go into savings, how to plan for things they want to buy, and when they need to check in with you before spending. Setting those expectations early helps avoid confusion or arguments later on.

Review Statements Together

Try to make reviewing account statements a monthly habit. It gives you a chance to go over their spending, recognize their savings progress, and talk through any mistakes or questions.

It also helps them build the habit of checking their accounts regularly, which is something they’ll need to do as adults.

Read more: Introducing Explorer Accounts for Kids

Conclusion

Giving kids real-life experience with their own checking and savings accounts is one of the most effective ways to help them build financial independence. These accounts teach responsibility, build confidence, and help kids see how their financial choices affect their everyday lives.

At our credit union, we offer Explorer Accounts designed just for kids up to age 17. Our savings accounts come with competitive rates, and our checking accounts have no monthly fees.

We also provide strong parental controls so you can stay involved and support your child’s financial learning every step of the way.

To make saving more fun, we offer rewards for good grades and prizes for in-person deposits at our branches. We believe it’s important to recognize and celebrate smart financial habits. We also host regular workshops for young members and offer other benefits for families, like special loan rates.

We’re proud to serve families in Lafayette, Iberia, Vermilion, Acadia, and St. Martin parishes. Stop by our Lafayette or New Iberia branch to open your child’s Explorer Account and help them take their first step toward financial success.