Their First Bank Account! 4 Teen Checking Accounts, Parent, guardians, and teens can open up today!

Imagine you’re a teen, and you landed your first job! You’re so excited to receive your first paycheck and discover that a company charges you between 2% and 2.5% to cash your paycheck. I recently learned about young people using check cashing centers to cash their first check. This pains my heart. But why are students using these places? Because they are convenient, they may lack knowledge of banking institutions, or they don’t have a parent/guardian to open a bank account.

So, what should teens consider when considering banking institutions?

1. FDIC - insured account - meaning their money is protected by the federal government up to $250,000

2. Direct Deposit - flexibility to receive funds directly from their employer

3. Low or no monthly maintenance fees - teen accounts offer little to no monthly maintenance fees to open up bank accounts

4. Options for savings with a high-interest account

Teen bank accounts are available, so be sure to create one soon. I know some teens receive their paychecks via apps like CashApp and Venmo. While these apps offer ease of use, they aren’t sustainable or safe places to keep large sums of funds. Teen checking accounts allow teens to manage their money with safeguards like parental controls and spending limits. Teen checking accounts take less than 10 minutes to create, you will need a Social Security Number, their name, date of birth, etc.

Can someone else who is not a parent open up the account? Some banks require that the parent, grandparent, or legal guardian to open the account, other banks require opening up a joint account between the adult and teen. Discuss with the person responsible for raising the teen before opening any accounts.

Here are a few teen checking accounts to consider:

Alliant Teen Checking Account - 

• It can be opened when a teen is between 13 and 17 years old

• no minimum balance or monthly maintenance fees

• Limits on ATM Withdrawals

Axos Banking

• It can be opened when a teen is between 13 and 17 years old

• zero monthly fees and zero overdraft fees

• daily transaction limits

USAA Youth Spending account

• any child under the age of 18

• must be a USAA member

• Deposit at least $25

• when the child turns 13, parents can create limited access to the account

There are other banks to consider, especially local banks and credit unions. Opening a bank account is a great way to introduce financial responsibility for youth and teens! Research banks you might be interested in and bring your teen along for the research. Open one up today! If you opened an account for a teen, using this article, please let me know!

Disclaimer: This blog post is not financial advice. It is financial education for educational purposes only.