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Opening Savings Accounts for Kids

We all want our kids to grow into adults who have healthy finances and financial habits--and it’s important that you don’t wait until they’re fully grown to teach them these habits. In fact, the right time to open a savings account for your child might be earlier than you think.


Bank on Financial Literacy


We recommend that clients open an account once their child meets these three criteria:


1. They are old enough to have a basic understanding of how banks work.

2. They are mature enough to handle money thoughtfully (on an age-appropriate level).

3. They have or receive money.


Generally, an 8-year-old 1 will be able to meet the above criteria to a satisfactory degree. But, if 8-years-old feels too early for your child, it’s a good idea to at least get started before he or she becomes a teenager and begins to use money more seriously.

Lifelong Benefits of Starting Young

There are a number of benefits of starting a savings account when your child is young:


1. Opening a bank account for your child provides the perfect opportunity for them to learn how to handle money thoughtfully. It can teach them personal habits, like the satisfaction of saving up and the importance of carefully balancing cost versus value when they make a purchase.

2. It can also teach them the joys of saving. If your child gets any money for a birthday or Christmas, or if you give them an allowance, encourage them to save this money in their account. Let them check their account balance online, and they’ll feel pride as they watch the number grow higher and higher.

3. Having a bank account can also help your child understand the banking system, especially if you explain how it works 2 or encourage them to read about it 3. If you make deposits or withdrawals in person at the bank, take your child with you to make the bank seem tangible and real.


Raising kids with financial literacy gives them the best opportunity to thrive long-term. It could reduce your stress later on, too.



1 https://www.forbes.com/sites/robertfarrington/2021/07/01/when-to-get-your-child-a-bank-account-and-debit-card/?sh=a68d03a40cc3

2 https://www.consumerfinance.gov/ask-cfpb/whens-a-good-age-to-open-a-savings-account-for-my-child-en-1661/

3 https://kids.britannica.com/kids/article/bank-and-banking/352823



This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and are subject to change without notice. The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Keep in mind that current and historical facts may not be indicative of future results. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. The information provided is for educational purposes only and not intended to provide any investment, tax or legal advice. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website.

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