Recently a friend shared that her 8th grader was going on a school field trip. Parents had been advised to make sure their child had a way to electronically pay for any souvenirs because the destination was cashless.
The teacher gave the parents some suggestions — a pre-paid card (like from the grocery store), adding a card to Apple Wallet or the like on the child’s phone, or giving them cash and having them convert it to a card at the destination.
She ended up adding her card to her son’s Apple Wallet and all was well, but 8th grade is a great time to get kids their own card so they can learn to manage money!
Pre-Paid Card Options
If you’re not quite ready for a checking account (or your child is younger), you can go the pre-paid route. There are some great pre-paid cards designed specifically to teach kids about money:
- FamZoo — We used FamZoo for years before switching over to a checking account with debit card. The service is about $5.99/month (less if you pay for a year) and includes a ton of online options for automatic allowance, interest payments, chore lists and other great features to teach your kids how to manage money.
- Greenlight — I first heard about Greenlight through our bank. Plans start at $5.99/month, but check to see if your bank offers free Greenlight accounts (like ours does). Greenlight looks very similar to FamZoo where you can pay interest on savings, plus handle chores, jobs, allowance and direct deposit.
Checking Account / Debit Card Options
Before I dive into checking account options, I want to mention teens 13-17 can have a Venmo account under their parents. The Venmo account comes with a debit card, but there is no checking account as far as I can tell. A few months ago, I signed J up to investigate, but realized that any money he received via Venmo could not be transferred to his own personal checking account so we don’t use it too much. If that’s not a deal-breaker for you, then it might be a great option.
If you’re ready to open a checking account, here are a few!
- Our credit union, PSECU, offers regular, free checking accounts to kids 12 and older. I also have accounts at PSECU and it makes it very easy to transfer money to him when needed! Check credit unions in your area to see what they offer.
- Chase offers a High School checking account for teens. No fees, alerts on spending, quick deposit, direct deposit and automatic transfer to savings are just a few of the features. (Chase also offers a First Banking account with savings goals, allowance controls and chores, designed for kids 6-12.)
- Other big-name banks offer accounts for teens, too — Wells Fargo Student and Teen Checking, Capital One Money Teen Checking, Huntington Student Checking and Alliant Teen Checking are just a few.
- mph.bank offers a “first account” for people 10-26. They have goal accounts, interest, no fees, a round up widget and more.
- Fidelity offers a Youth Account for teens 13-17. This is actually a brokerage account where teens can invest! You can also schedule allowance, trade in gift cards, and get notifications on spending.
What Else to Consider
If you prefer that your kids bank at the same place you do, check your bank to see if they offer accounts for teens. Having your kids bank at the same place can be easier in a lot of ways — transferring money, keeping an eye on things, plus you’re already familiar with the banking interface and can help guide your kids.
Make sure that the checking account you’re looking at is free — now AND after they turn 18. No subscription fees, no account fees, no minimum balances, and possibly no overdraft fees. You do not need to spend money to have a regular checking account!
Check to see if there are ATM fees. Some banks offer free transactions with specific ATMs (like Allpoint) and some may offer reimbursement of any ATM fees up to a specific amount per month.
We do not have any reason to visit a local branch of our bank, so having one close by isn’t important to us. If you want to take your kids to the bank as part of their financial education, see what’s close.
In short, look for a bank and features that are important to you!
Teach Your Kids How to Use the Card
Securing a card (and/or account) for your teen is just the beginning!
- Help them add money to the card or account. For example, show them how to deposit money they receive from others and/or set up a transfer from your account. (I pay a regular monthly allowance, and also help convert J’s cash to his account when needed.)
- Teach them how to use the card at the store — double-checking the amount, when to tap/insert/swipe, whether to use a PIN number or not, getting a receipt, getting a text message after purchase, etc. Later you can help them with online purchases.
- Teach them how to use an ATM to get cash out, check their balance or even deposit money.
- And the most important (I think) — teach them how to know how much is in the account or on the card at any given point. For a long time, we used a simple register. Here’s ours and you can also search online for some printable options! (When you’re ready, you can talk about categorizing that lump sum into smaller buckets — clothing, gifts, education, entertainment, etc. We use YNAB for this!)
Getting your kids their own account and/or card, teaching them how to use the card and having money conversations with them is a great way to connect and prepare them for the future!
If you’re interested in this post, you may also be interested in these related posts! Making the Transition from Cash to Card, Yes, Your 11-Year-Old Can Learn to Budget and The Simple Way Your Teenager Can Manage Their Money.