What Age Should A Child Open a Bank Account?

Saving money is important. It is a skill all of us need to learn at some point. Our futures’ depend upon it….no pressure!

But, what is the right age for your child to start saving money?

At what age should your child open their own bank account?

Perhaps they already have a piggy bank full of change and small bills they earned for allowance. My own daughters love to dump out their piggy banks on the living room carpet to stack and count all their money.

Recently, my eldest daughter expressed interest in getting her own bank account. That prompted me to think hard about What Age Should a Child Open a Bank Account?

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Signs Your Child Is Ready To Open a Bank Account

1. Your child’s piggy bank is getting full! Practically speaking, there may be no more room in their piggy bank. This happened to my kids when their baby teeth started falling out in droves around 7 and 8 years old.

2. He or she wants to help you use your bank card at the bank machine. Use your discretion with this one because often toddlers like to press the buttons and take out the cash from the slot. If your kid is old enough to be responsible with a bank card and not lose it, then they are ready for their own.

What Age Is A Child Ready To Open A Bank Account - 7 signs your kid needs a savings account

3. Your child is asking where the money in your bank account comes from. Little kids think the bank is a never-ending source of money you can just pony up to when you run out…if only! Around age 8 my eldest daughter understood that the money in my account was deposited by my employer. I could only withdraw what I had earned.

4. She can identify and count bills and coins.

5. He earns an allowance and/or does small jobs to earn money.

6. They are interested in saving money rather than spending it all. They no longer want to burn through any money they are gifted for their birthdays, but want to save up for something important. Some kids are natural born savers. My eldest is just reaching this stage at age 9.

7. There is a big ticket item they wish to save up for. Reinforcing that they must save up their own money for a big “want” is a great motivator to deposit their money in a bank account.

Read: Smart Ways To Save Money On Back To School Expenses

How to open a savings account for a child

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What is the Best Age to Start Saving Money?

Having their own savings account is a great motivator for children to save their money and not just spend it. It helps teach them the value of money.

They learn that the money in their account must be earned…they can only withdraw what they have deposited.

Opening an account can give a child a sense of pride and responsibility, and help foster an interest in saving rather than spending…a great lesson for all of us.

My eldest daughter opened her first account when she turned 9 years old.