Giving a child access to a bank account for themself should help promote good spending, responsibility, and saving skills. It is up to the parent to decide at what age it is appropriate to open the account, depending on how responsible they already are and whether or not they have a job.
Debit cards are a great option for kids who are first trying to save their money. Debit cards function differently than credit cards, by not making you have to pay a large monthly or annual fee. Some banks and card brands even provide the option to instantly transfer money between a parent’s and a child’s accounts. Parents can also see how their children are spending their money and monitor their purchases.
In my opinion, children should be trusted with their bank account when they start showing signs of financial responsibility, interest in saving up money, or when they first get a job because they will need somewhere to store their money. Banks have the option to create a savings account, and this will put children in a good habit of keeping money aside.
Getting used to being in control of money will benefit children as they grow up, transition into adulthood, and further their education. Especially, if children start working and get a job at a young age, they’ll need somewhere to store their income and even get in the habit of saving money for the future.
Victoria Whalen, a senior at Westwood High School shares, “I was in fifth grade, my parents took me to the bank and we set it up because I was working at the time and I had nowhere to put the $20 I made from this job so I opened a bank account to start saving my money”. A lot of children do begin working at an early age, even if it’s not a job on the books; it could be for a family member or a friend.
According to CNBC, the Greenlight Debit Card is the best option for people getting their first bank account or debit card. It only costs $5.99 a month, and you’ll earn cash back over time. Parents can put spending limits on their children through the app, and they can see money requests. This app teaches children how to manage their money and gives them a head start on preparing for the real world.