There comes a point in almost every child’s life when the “piggy bank” starts to feel a little limiting.

Maybe they’re earning money from chores, receiving birthday cash or getting their first paycheck from a summer job. Suddenly, parents are faced with a new question: Is it time for a real bank account?

The answer depends on a child’s age, maturity and financial goals, but experts say introducing banking tools early can help build healthy money habits that last well into adulthood.

The First Step: Custodial Savings Accounts

For younger children, a savings account is often the best place to start. Most banks and credit unions offer custodial savings accounts that allow parents to maintain oversight while introducing concepts like saving, spending and setting goals.

These accounts typically come with low or no fees and can be a great way to show children how money grows over time.

According to the Consumer Financial Protection Bureau (CFPB), children who have savings accounts are more likely to develop positive financial habits and may be more likely to pursue higher education and long-term financial goals.

At this age, the goal isn’t necessarily about teaching them about investing or credit scores. It’s simply helping kids understand that money has a purpose beyond being spent for immediate satisfaction.

Prepaid Debit Cards: Training Wheels for Spending

As children get older, many parents turn to prepaid debit cards.

Unlike traditional debit cards, prepaid cards aren’t connected to a checking account. Instead, parents load money onto the card, and children can spend only what’s available.

For families, this can be an appealing middle ground. Kids get the experience of using a card in stores or online, while parents often retain control through mobile apps that allow them to monitor spending, set limits or transfer money instantly.

The CFPB notes that parents should pay close attention to fees, however. Some prepaid cards charge monthly maintenance fees, ATM fees or reload fees that can quickly add up. Prepaid cards can be useful teaching tools, but understanding the fine print matters.

When Is a Teen Ready for a Checking Account?

By the teen years, many families begin considering checking accounts, particularly if a child has a job, drives or needs greater financial independence. Teen checking accounts generally allow for direct deposit, debit card use and online banking access, often with parental oversight built in.

According to financial education nonprofit Jump$tart Coalition, hands-on experience managing money is one of the most effective ways for young people to develop financial capability.

A checking account introduces important lessons about budgeting, tracking purchases and understanding that money in an account isn’t unlimited simply because a plastic card is attached to it.

Some accounts even allow parents to receive notifications about spending or set transaction limits, creating opportunities for ongoing conversations about financial responsibility.

What Parents Should Consider

Before opening any account, experts recommend asking a few questions:

• Are there monthly fees or minimum balances?
• Is there parental oversight?
• Are there ATM restrictions or overdraft fees?
• Does the account offer educational tools or budgeting features?
• Is the child ready for the responsibility that comes with it?

The right account often depends less on age and more on maturity

Opening a first account may seem like a small step, but it can be an important one. Just as piggy banks teach children to save coins, bank accounts help teach the real-world skills they’ll eventually need as adults.

The goal isn’t simply giving kids access to money. It’s giving them opportunities to practice managing it — one deposit, purchase and lesson at a time.

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