Saturday, 01 August 2009
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How Young Is Too Young...For A Bank Account?
I just turned 24 on Wednesday and realized that it’s been exactly 10 years since I got my very first bank account. When I turned 14, my mother insisted I start an account so I could learn how to manage my own money. So I was set up with a very basic savings account with ATM card at my local credit union. Because I was under 18, it was a joint account with my mom’s name on it. At the time, I was the only one of my friends with control over my “own” money. Most didn’t have their own account or, if they did, it was geared primarily for savings and they didn’t have much access to it.I feel like things are a little different now, as I hear about younger and younger kids getting their own accounts. It makes me wonder what a good age to start an account is- how young is too young? Aside from the individual banks’ policies, do you think there should be a minimum age? How old were you when you got your first account?
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- From: Cara
- Name: Cara
- About Me: I'm a 24 yr old back in the Midwest for law school. I've survived the first semester as a law student after working as a paralegal for two years. Let's see how the rest of the time goes!
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Comments (20)
I was 15 when I got my first job, so that's about when I started really managing my money with a bank account and stuff.
I was 16, it was when I started my first job. Prior to that I didn't have enough money for it to be a concern.
Personal finance is something the schools barely teach, and most parents barely know let alone teach. I'm thinking probably 13 or so would be a good age.
I think I would get them to setup 3-4 accounts though, preferably in something like ING Direct where creating and managing accounts is easy, but with something where deposits aren't so difficult. That is one for spending, one for savings, one for "emergencies" (while I wouldn't expect a teen to fund for real emergencies, it's a good practice for adult life), and one for longer term investing (think car/computer/school). Possibly even a fifth one for giving.
I had my own bank account about a month after I was born! My dad took one out in each of the children's name (me, my brother) after we were born. That way we were starting a credit history and he was helping us save for school, etc. all our lives. I finally took over the access to my account when I was 16...by this, I mean, I had a bank card and used my own money in it to buy things...but at the time I was going to work and college, so it made sense I needed access to more money than a little carried cash in case of an emergency. There has been more than one time my dad has called over to the bank and transferred funds to my bank account for emergencies or necessities...like my college books cost 200 more than I thought or my car broke down when I was out of town....While I've taken over my account (I'm 20)...his name is still on it, in case something happens.
At my elementary school, we were encouraged to get bank accounts as early as 2nd or 3rd grade. It makes sense to me; it's a joint savings account with a parent, so it's a bit of a college fund or car fund or whatnot... and we don't have to pay for the accounts until we're eighteen, so hey.
I've had a savings account as long as I can remember, and when I was 18 my parents name got taken off of it, and I also started a checking account. It's good to start early, I think. I started putting my birthday money into savings very young. (not always by my own choice, heh). I was glad to have it when I needed it...otherwise I probably would have blew it on Pokemon cards, haha.
my parents got me a passbook savings account when i was younger and all my christmas and CNY money went into that account. not that it was much, but it taught me the prudence of saving from a young age. since then, i've always enjoyed watching my bank balances grow!
i got mines when I was 15, iit's never to young, interest builds up. You never know.
Starting an account for kids to have later, there is never an age that is too early. My parents started a Junior Lion's Savings Account for me when I was 2, and I finally withdrew the money from it and closed the account when I was 18. They would deposit or withdraw bits and pieces for things I needed or for other investments, but the interest kept soaring and I had a good little nest egg right there.
Having a child start their own account, whenever they earn enough money to be saved. I started working with family at 10 and my parents felt it was right that I begin saving on my own, since I really didn't spend that much of what I earned or received as gifts, and I got my first bank account at 12.
I was 11 or 12.
I don't even remember when I got my first bank account...probably around 6 or 7 years old. I think it was a good idea though, because it taught me to be more responsible with my money when I was little. I didn't really get an allowance, but I'd get some cash once in a while for doing certain chores around the house. And our bank had a cool program for kids, where you got prizes when the amount of money in your account hit certain numbers. Plus, they sponsored a trip every summer, usually to the International Wolf Center or to a lumberjack competition. It was a pretty cool deal...it gave kids an incentive to stop spending their money all at once.
i was 13, but it was only a savings account. i'm 18 now and just got a checking account and a debit card.
One that you actually were able to access the moment it was opened or one that was set up for your future? I don't think there's ever an age too young to set up a savings account. But I don't think that you should be able to access it till you're 18. I have no problem with my kids getting their own bank accounts once they start their first jobs. But before then, I don't see a purpose. I didn't get my first one until I had my first "real" job (meaning, not babysitting). I was 18.
no such thing as too young, i would make a savings account as soon as my baby is born but for them to access their money i would wait, for at least the legal minimum age for them to work. in australia its 14 years old and if my child goes out to work at that age i don't see why they are not allowed to access their money. they did make it themselves on minimum wage rates.
it does teach them to be responsible and give them a sense of responsibility to themselves.
i think birth is young enough
its a good place for grandparents gifts, birthday gifts to go, plus children develop a sense of how to be responsible with money
it also makes sure that the child's money stays with the child and not the parents, but that's a personal preference thing
@MagisterTom@xanga -
Yea I think good idea to get online bank account, but it may be too complicated for a kid to have like 4 accounts? Perhaps it would work out more to have the kid give the parent money to deposit and transfer into joint online bank account.
Also a lot of regular bank accounts have too many fees. It would eat up the kids' savings, so it would be more efficient to piggy back on the parents.
When I was a kid my parents opened up a TD "First Savers"? account. That was really fun - going to the bank every to check my balance every month with my little passbook. Looking back at my records though, I saw that they started hitting me with some service charges for an unknown reason. Around that time I just stopped using it as the interest barely matched the fees
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As an aside to getting a bank account for a kid to teach about money management. A way for a parent to start the kid on the road to learning about savings and investments is to get them a Stock Certificate (In Trust). Pick up some blue chip dividend paying company that has a Dividend Reinvestment Plan (DRIP) with an Optional Cash Purchase (OCP) and register the stock certificate for the DRIP In Trust for them. The shares will keep growing with each dividend payout - and it will probably be a MUCH better return than the pennies that a regular bank account would be paying out.
Here is an investopedia article with some basic information about what DRIPs are: The Perks Of Dividend Reinvestment Plans
Another good resource with information on getting started: The DRIP Investing Resource Centre
I don't think that age should be a limit on this. It's good to teach to save money instead of always blowing it. Give them two accounts. One savings and one checking account, which will be allowed to be used to buy things when they really want something. The savings account should be 'locked' so there will be an interest building up and they will learn it's important to set money aside.
I think if teens are able to work, they should be able to get bank accounts. Where I live, I think the minimum age for teen/student workers is 15 y/o.
lol cute picture. I think 15?
i'm 17 and i recently got my savings account. just incase anything happens.. there are quite a handful of robbery cases here..