Whether they’re saving up for college, a car, or a hefty financial purchase, 49% of teenagers these days are opening bank accounts.
And these days children and teenagers are a lot more tech-savvy than their predecessors, leaving a lot of opportunities for them to utilize digital resources to plan for the future.
A study by Fidelity found that upwards of 50% of teens are using payment apps, but most still require the right guidance and assistance when it comes to their finances.
Today, more than ever, countless tools and mobile-friendly applications are specifically dedicated to busy teens. While these tools have made scheduling and goal tracking easier, financial planning remains an important factor that can help them properly save for future events.
According to a recent survey by Junior Achievement USA and Citizens Bank, some 54% of teens are worried about the higher cost of living and the higher price of tertiary education.
Consumers have been fighting off higher expenses as soaring inflation and skyrocketing interest rates eat into their disposable income. For teenagers who either receive a monthly stipend or allowance, financial planning and learning how to use money are even more important now than before.
Around 80% of teenagers who received an allowance in 2019 received payments in cash, while nearly 48% said that they use mobile and online apps to manage their money, from saving to planning and even paying for certain goods and services.
While a teen’s financial goal might look a lot different from their parent or guardian’s, they still rely on those adults to teach them how to properly use their money, manage their finances, and plan for the future.
Here’s a look at some of the most teen-friendly bank accounts currently available to choose from.
1. Capital One MONEY Teen Checking Account
The first teen-friendly account on our list is the Capital One MONEY Teen Checking Account, perhaps one of the most affordable and easy-to-use accounts available for teens.
The checking account can be directly linked to their parent’s bank accounts, allowing for better savings goals and wire transfers, and parents can monitor their children’s savings behavior.
Account holders can manage their money from a mobile-friendly app; more so, their parents can also track teen spending on an app specifically designed for parents. Though many digital features come with the account, it, unfortunately, comes with no dedicated bonuses or rewards.
2. Navy Federal Credit Union
Navy Federal offers a straightforward product for teens ready to open their first savings and checking account. While it doesn’t come with many bells and whistles, it has the perfect service offering for any small-time account holders.
First-time members will be required to make a minimum $5 deposit to open the account, and there is a basic annual percentage yield of 0.25%.
Though Navy Federal does have some better term-based savings accounts, teenagers can enjoy a straightforward product offering that can easily help them save and manage their money seamlessly.
As a teen’s financial situation improves, they can add different product ranges, such as overdraft protection and a Navy Federal Credit Union Standard Certificate. Over time, the account allows teens to grow their savings and help improve their account management.
3. Alliant Credit Union Teen Checking Account
Parents who are already Alliant Credit Union members can open a Teen Checking Account for their children, which gives them access to a range of Alliant-related products and services.
The Teen Checking Account is suited for teenagers aged 13 to 17 years, with no minimum balance or monthly service fee, making it one of the more affordable account options on our list.
On top of this, parents or guardians can have joint ownership, but they will be required to be existing Alliant members already.
Aside from the traditional offering, such as a mobile banking app and access to more than 80,000 fee-free ATMs, this account comes with a $20 per month in ATM rebates and includes a Contactless Visa debit card for both parents and teens.
4. Chase High School Checking Account
The Chase High School Checking Account gives teenagers the best of both, as it includes a regular checking account and a Chase Savings Account that is free to account holders under the age of 18 years.
With this account, teenagers will have more at their disposal, especially when they are just learning about money and managing their finances.
The account can be tailored to each child’s money needs and habits, while the Autosave features help them to set and track their savings goals. Additionally, Zelle Footnote allows seamless and same-day wire transfers to and from this account.
The account has no monthly fees and can be converted to a Chase Total Checking Account once the holder turns 19, which gives them access to different rewards and benefit options.
5. Axos Banking First Checking
The teen checking account offered by Axos is one of a few interest-earning accounts available that are specifically designed for teenagers.
For those aged 13 to 17, the account comes with no monthly maintenance, overdraft, or non-sufficient fees.
Annual interest is 0.10%, and account holders can receive up to $12 in domestic ATM fee reimbursements per month.
This is a relatively basic account, and it doesn’t come with a lot of bells and whistles. A downside of this account is that it has a daily transaction limit of $100 in cash and $500 in debit, which can be a bit of a hurdle when a teen wants to make a large cash or debit purchase.
Like similar accounts we’ve reviewed, this account can also be connected to a joint parent or guardian account.
Although Copper is not completely categorized as a bank or formal financial institution, the fintech app is designed and created for teens who want to control their finances better.
Managing money is more streamlined with the Copper mobile banking application, giving users a more straightforward approach to working with their money.
The platform has already seen more than 800,000 members, and account holders will be able to spend and use an included Mastercard debit card. As with other accounts previously mentioned, parents and guardians can still oversee their children’s accounts and monitor spending and saving behavior.
Copper stands out from the crowd because it connects with other popular banking and payment apps such as Apple Pay and Venmo.
Copper has some limitations, but with no monthly fees, the platform remains an easy-to-use solution for any teen willing to manage their finances better.
These days, kids have many more options in terms of their financial management and planning than most of their parents had about a decade ago.
From banks, credit unions, and fintech, all dedicated to helping teenagers send, spend and save better, there are some highly attractive teen checking account options currently available that give them the freedom and willingness to control their finances more seamlessly.
Though taking a step towards financial independence does come with a lot of responsibility, parents and guardians can choose an account tailored to their children’s financial needs. Ensuring they have access to the best range of benefits that rewards them for managing their money in a more sophisticated and knowledgeable way.
This article was produced and syndicated by Wealth of Geeks.