A first savings account for your child

Why families open one

A jar at home is fine for a few dollars. As savings grow, a jar gets awkward: it is easy to dip into, easy to lose and does not grow. A first account moves the money somewhere out of reach of impulse.

This page is general. It does not recommend any bank or account, and rules differ between countries and between banks.

When to think about it

There is no right age. Families often consider it when a child has saved more than they can easily keep at home, or when relatives start giving larger gifts. Others wait until the teen years. Either is fine, and kids vary.

A savings goal can be the nudge. If your child is working toward something that takes months, see savings goals for kids.

Questions to ask your own bank

Each bank sets its own rules for minors, so ask directly. Write down the answers and compare if you have more than one option.

1. What accounts do you offer for children, and from what age?
2. Who owns and controls the account: the child, a parent or both?
3. Are there monthly fees or minimum balances?
4. Does the account pay interest, and how is it set?
5. Can the child see the balance, and how, for example in an app or at a branch?
6. What happens when the child reaches adulthood?
7. How do deposits and withdrawals work, and what limits apply?
8. Are there tax or reporting rules for children's savings where we live?

Making the account feel real

• Deposit together on a regular day, such as the first Saturday of the month.
• Let your child hand over the cash or press the transfer button.
• Check the balance together every few months.
• Name the account's purpose: a bike, a trip, a phone, or simply "the long-term pile".

If your child is saving for something short-term, the money may be better in a jar or a tracker where it is easy to see. The account suits longer waits.

Talking to your child about what the account is for

Before you go to the bank, explain the idea in plain words. The money goes in, it stays there, and it is not for everyday spending. A child who understands this is less likely to ask for a withdrawal the next day.

• Set a rule for when money may come out, such as for the goal only.
• Agree who decides, and keep that rule consistent.
• Mark the account's balance on a simple chart at home so your child can see it grow.
• Celebrate milestones with something free, like a walk or a favorite meal.

Kids often enjoy seeing a number that belongs to them. If your bank provides statements or an app, show your child how to read the balance.

If your child gets a lot of gift money

Larger gifts from relatives are a common reason to open an account. Decide in advance how gifts are split between spending and saving, and tell the relatives only if you want to. The page on birthday and gift money describes a few simple rules to choose from.

A simple way to split money

Some families divide each payday into parts: some to spend, some for a goal, some for the account. Our page on spend, save and give jars describes this idea.

If you want to practice before involving a bank, a free tracker can show a pretend balance that grows toward a goal. Pouch tracks one savings goal per kid and does not hold real money, so you move the real money yourself.

What to expect from interest

Interest rates change over time and differ between banks, so this page gives no figures. Ask your bank for the current rate and how often it is paid. To explain the idea to your child, try explaining interest to kids.

Do you need an account at all?

No. Plenty of families skip it until the teen years and use cash jars or a tracker instead. An account is a tool, and the habit of saving is the goal.