Kids Checking Account: the Struggle Between Opening One or Not

kids checking account

Should You Get A Kids Checking Account? Why or Why Not? 

You must have had millions of questions about your kid’s checking accounts as a parent. Some parents argue that giving their children access to real-world money and reports teaches them that they get everything on a platter. Another common argument for opening a kid’s checking account is that it will teach your children to manage money.

It’s a tough decision, and both sides have a point. But, if you are reluctant to make a decision, we give you the pros and cons of opening a kid’s checking account and alternatives if your goal is to teach your kids financial literacy.

Alternative to the traditional way of teaching them how to handle money is the BusyKid app.

BusyKid offers an option for parents who want their kids to learn about managing money responsibly and in a fun way. To help you decide if a checking account is suitable for your family, we’ve put together a list of pros and cons. So, what are the advantages and challenges of giving your child a checking account? Let’s take a look.

Simple Reasons Why You’ll Love Kids Checking Account

Generally, a kid’s checking account does not differ much from an adult one. That’s because most banks don’t allow minors younger than 18 to have an account in their name. However, there are some exceptions, but you must research different banks to get that information. For example, Capital One allows kids to have a bank account. 

However, opening an account is still possible in all banks if you open a joint bank account as a legal guardian or a parent. Your child gets all the benefits from the account and pays for the services. 

However, there is always a positive side to things, so do not despair just yet. 

Why do parents even consider opening a kid’s checking account? The most common one is because parents want some freedom from their child’s demands. The kids checking account would give children access to funds they can withdraw anytime and anywhere. 

Another common reason is that parents want to teach children financial literacy. However, both of these reasons do not include financial responsibility. That’s the reason some parents are against this practice because they do not trust kids to walk around with a debit card in their hands. 

As everything in life teaches, financial literacy and responsibility depend solely on you as a parent. So, a kid’s checking account is an excellent choice if your child shows maturity with money spending and they no longer needs a kids’ banking app. In this case, there are many reasons why you will love it when your children have a kid’s checking account. 

Teaches Responsibility

Having access to their funds gives kids more responsibility and accountability. They will better understand and evaluate their needs vs. wants if they have funds. In addition, if they realize its importance, they will plan to save for whatever they need, especially if they have a part-time job. Finally, they’ll learn how to budget their money so they can buy what they need but not go overboard on unnecessary expenses. 

Using Debit Card Wisely

Kids having instant access to a debit card is a nightmare for most parents. But it doesn’t have to be if they are taught to spend their money wisely, even using plastic. The truth is with a kid’s checking account. Many banks require the account owner to keep track of their balance, which should stay above the required limit. That means they will have to monitor their spending activity. 

Teaching Independence

Independence is an important life skill. While they have access to a checking account, they will be obliged to utilize the services of financial institutions. As they get more in-depth with the system, they will find ways to keep track of them. When you look at it, many banks offer much more than checking accounts. They also have financial education and other services. With their account, they can start treading their own economic path and make decisions for themselves. 

Challenges With a Kids Checking Account You May Not See Coming

The first thing that comes to a parent’s mind when someone mentions the cons of giving their kids access to a kid’s checking account is an image of their child in puberty going rampant with the debit card or not using the account at all. That’s possible! But the actual disadvantage of a kid’s checking account is entirely different. 

Account Fees

Account fees are perhaps the biggest drawback of a kid’s checking account. You’ll see many parents complain about this fact. The truth is your child might not have a part-time job permanently, therefore no income to pay the fees. As a result, banks often install them at a flat monthly rate or per service. Online checking accounts are so appealing because they offer no-fee checking accounts. 

Overdraft Fees

Another financial disadvantage of a kid’s checking account is that perhaps they do not truly understand the outcome of overdrawing and what that implies for them in the future. If they believe they have sufficient funds, they might try and withdraw them, which in turn can amount to unpaid overdraft fees. Banks do not take these lightly and may choose to close an account. That fact might make it harder for your kid to open a new one in the future. 

No Interest

If you want a way for your kids to make a passive income with interest, then kids checking accounts are not an option. However, there are exceptions, but most of them do not earn interest. The reason is that the checking accounts are, in essence, used as cash, as deposit accounts. They are not designed to accumulate money but rather keep it liquid. 

kids checking account

Image by DCStudio on Freepik

How to Spot the Best Kids Checking Account: X Signs and Features

Before you jump into the features of the best kids checking account, check the age requirements for opening one. While some banks allow children as young as 13 to have an account, others might ask that your kid be above 18 years of age. 

Whichever the term, there are slight differences between the accounts, and naturally, you want to find the right one. The goal is to seek an understanding that will help their plan. Whether it’s a learning process, having access to money because they travel a lot, or simply because you want to teach them independence. That includes clearing up the consequences of overdrafts. 

So, there are a few different types of checking accounts you should look into:

  • Traditional checking account
  • Online checking account
  • Joint checking account
  • Teen and kids checking account

Each one of them differs in one feature or the other. So, ensure that you read between the lines what that account implies. Among these, the essential features that can reveal signs of the best kids checking account are:


It always comes first. It’s known that minors are more susceptible to scams and fraud. In the same way, you want to find an account insured by the Federal Deposit Insurance Corporation (FDIC). 


These often seem like taxes. Therefore, choosing an account with the lowest possible fees is a wise choice. However, as already mentioned, your kid might not always be able to support high charges. That doesn’t imply just monthly fees but also ATM charges, overdraft costs, and non-sufficient funds fees. 


Some joint checking accounts have an annual percentage yield. It’s a bonus to your kid’s checking account. That means they can get an insight firsthand into how interest works. 


The best kids checking account has low balance requirements to open accounts. That goes for maintenance as well. It means being allowed to keep the funds on your account close to none. You have to be sure your kid can meet those requirements whichever choice you make. 


It goes without saying. Your child must be able to access the account quickly. That means the convenience of an ATM network and banking app. 


More often than not, banks allow legal guardians and parents to monitor their children’s accounts. That includes having a certain level of control over your child’s spending. 

5 Valuable Financial Skills to Teach Kids Using the BusyKid App

We’re all about teaching kids financial literacy. It’s a skill that will serve them well for the rest of their lives, and it’s never too early to start. You might be surprised to find that kids can begin learning valuable financial skills at a young age. What if your child could learn how to be smart with money at a young age?

Money management is a skill that needs to be taught for kids to understand how important it is and how much of an impact it can have on their financial future. Introduce this concept early on so they can learn about saving and budgeting even before working full-time jobs. The BusyKid app teaches kids about saving, spending responsibly, and budgeting—all while having fun!

It’s designed to simulate real-world banking in a safe environment and on their level. It includes different features to give you and your child a visual context of how money works in banks. With that in mind, here are five great ways to teach your kids financial skills using the BusyKid app:

#1 Savings Goal

BusyKid is all about saving—literally! With our app, you can set up a goal for your kid to save for something they want. You can even set up multiple goals for different things so they can work toward more than one dream at once!

#2 Money for Chores

We know how hard parents work to keep everything running smoothly at home. So why not let your kid pitch in with some chores? BusyKid allows you to set up an allowance system where your child can earn money by doing chores around the house. Then they can decide how to spend it—on toys, candy, or something else entirely!

#3 Using Spend Card for Kids

Teach your kids how debit cards work without giving them one: use BusyKid’s prepaid debit card feature to start learning how credit works without any risk of debt! They’ll know how real adults manage their money. You can also use the Spend card to teach your kids about spending responsibly.

#4 Wise Spending

It’s easy to get caught up in the moment and think that you need to buy this or that because it’s on sale, but if you’re teaching your kids about wise spending, it’s essential for them to understand that just because something is on sale doesn’t mean it’s a good deal. It’s important to teach kids how to evaluate whether or not an item is worth the price tag and whether or not they need it. The BusyKid app can help you prepare your kids not to make hasty decisions and postpone their spending. 

#5 Being Responsible

Teaching kids to be responsible with money is an essential but often overlooked part of financial literacy. It’s something you can’t just wish away or hope that someone else will take care of. It’s an essential skill to teach from a young age, so kids can develop the discipline and self-awareness necessary to manage their finances when they grow up.

The BusyKid App is the perfect tool for teaching kids how to handle their own money and make responsible financial decisions. BusyKid makes this easy. The app has a built-in chore chart where you can assign chores for your kids and then pay them for completing those chores. They’ll see that their hard work pays off!

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