Choosing the Right Account for Your Teen

Reasons to Open a Teen Account

Having a bank account can help your teen develop basic financial skills. It's a great way to teach them how to make withdrawals and deposits, use online and mobile banking, monitor transactions, use a debit card, and spend responsibly. Plus, having access to their own funds can teach them how to budget and save.

Research

Before you start researching different account options, talk to your teen. Have a conversation with them about responsible spending and saving habits and find out what they hope to achieve with this new account. Since your child may not be very familiar with financial matters, they will rely on you to provide guidance. You can also reach out to friends, family, and coworkers with kids. They can provide additional insight about accounts they've opened for their children.

"We opened a savings account for my daughter shortly after she was born. When she turned 13, she was excited to open a Teen Checking account. All she really wanted was a debit card, but the Teen Checking account provided much more. She loves being able to deposit checks using Mobile Deposit and keep up with her account using the Mobile App. The Mobile App also allows me to monitor her spending and transfer money to her accounts. My daughter enjoys having some financial freedom, and I'm grateful that she's developing good money habits early." – Karen, AllSouth Team Member

Next, consider their goals for the account as well as what you hope they will achieve with the account. Are you seeking a savings account to help them learn to save and earn interest or a checking account that will provide your teen with the freedom to spend the money they've earned using their debit card? Or both? Consider opening a checking account for daily spending and a savings account for future goals.

“It was most important for us that my children were able to have a debit card to give them some independence and the ability to make purchases without having to carry around a lot of cash. It was also important that we were on the account with them to help them make good decisions with their money and lend a hand when needed.” – Kendra, AllSouth Team Member

Compare Features and Benefits

While most accounts have similar features, it is essential to ensure that the account you choose meets all your requirements. Here are some key account benefits to consider: 

• Minimal to no fees. Review any fees or charges associated with the account. Because teens may use their checking accounts for daily transactions and are still getting used to managing their financial lives, keeping fees low is important. Keep an eye out for monthly, ATM, overdraft, and non-sufficient funds (NSF) fees.
• No minimum deposit requirement. Some accounts may require that you keep a daily or average minimum balance requirement to avoid a fee. If your teen doesn't maintain that requirement, they could incur a monthly fee.
• Earns interest or dividends. Both checking and savings account options may pay interest or dividends. If this is important to you and your teen, you'll want to compare rates to determine the best return.
• Convenient access. Consider accounts that come with a user-friendly online and mobile banking platform. Other things to consider are branch locations and ATMs that are convenient to where your teen works, lives, or attends school.
• Debit Card. Debit cards are widely accepted for purchases and withdrawals, offering a convenient and secure way for your teen to access their funds. 
• Online and Mobile Banking. Provides a simple, secure, and convenient way for your teen to check their balances, make transfers, deposit checks, and more 24/7. 
• Educational tools. Many accounts offer tools to teach kids about finances and money management. Your teen can create a budget, track their spending, and more. Learn more about our Financial Tools available through Online and Mobile Banking.
  
  

"I enjoy the features of the teen account because it gives my son the freedom to manage his own money but the security of knowing that I can monitor his spending. He enjoys having his own debit card and often uses the mobile wallet feature. As a parent, I like knowing I can transfer funds to him, and he has immediate access." – Jessica, AllSouth Team Member.

Stay Involved

Financial education starts at home. Teaching your children financial education is linked to lower debt levels, higher savings, and higher credit scores as children mature into adulthood. Since your child may not be very familiar with financial matters, they will rely on you to provide guidance.

Remember, children under 18 typically need an adult to be a joint owner on an account. As a joint owner, you can access their account, monitor transactions, and set up automatic transfers. Once their account is set up, you can show them how to use the available tools. If you have questions about the new account, you can visit a branch or contact the person who helped you open the account.

“I appreciate the convenience of being able to quickly transfer funds from my AllSouth account to my teenager for day-to-day purchases such as gas, lunch, or online purchases. My kids have enjoyed services like debit card access and mobile banking while simultaneously learning financial responsibility and money management. They even transfer a few bucks to savings every now and then.”        - Kevin, AllSouth Team Member. 

Learn more about AllSouth’s Teen Checking Account.