Opening a bank account for a minor is a great way to teach children about financial responsibility and savings. Here are five tips to help you navigate the process of getting youth involved in banking:

1. Choose the Right Type of Account

   Several types of accounts are available for minors, including educational savings accounts, custodial accounts and joint accounts. Think about your goal in opening an account. Whether you want to teach young people the fundamentals of banking or you’re saving for the future, choose an account that will help you achieve that goal.




2. Gather Necessary Documents

   To open a bank account for a minor, you’ll likely need identification for both parties, including a photo ID for the adult and a Social Security card for the minor. You’ll need proof of address and, if applicable, a minimum deposit.




3. Understand the Account Features

   You should consider features such as whether the account has fees, whether it will generate interest and how many withdrawals are available.




4. Visit the Bank to Apply

   Visiting a branch can help make an impression on the young person in your life with a personalized experience. During the visit, the bank representative can guide you through the application process, explain features and answer questions. An in-person visit can help create a core memory for young children.




5. Teach Financial Responsibility

   Once you have an account opened for a minor, use it as an opportunity to teach youth about saving, budgeting and the importance of being responsible with their account and money. Encourage regular deposits and discuss the benefits of having emergency funds to help them develop good habits.

Opening a bank account is a valuable first step in developing financial literacy. By giving youth in your life an early start in navigating financial services, you can help them build a strong financial foundation.

Cadence Bank offers a savings plan ideal for young people. A Young Savers account might be the perfect tool to help the young person in your life learn the importance of saving money and managing finances. Ready to open an account? Find a location near you to get started today!

Sources:
https://www.consumerfinance.gov/consumer-tools/money-as-you-grow/school-age-children-preteens/
https://www.forbes.com/advisor/banking/savings/guide-to-childrens-and-kids-savings-accounts/
https://www.businessinsider.com/personal-finance/banking/how-to-open-a-bank-account-for-a-minor/
https://www.consumerfinance.gov/consumer-tools/money-as-you-grow/teen-young-adult/

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.