Opening a bank account for your children and whether it’s an independent account or a personal account, gives you the following benefits:
- Underpinning the basic banking concept of how to withdraw or add the funds.
- Learning basic budgeting techniques and fund managing skills.
- Teaches them the important lesson of saving which is lacking in the new generation.
- Reinforces the short-term and long-term spending and saving techniques.
- Communicates the value of financial goals.
The following types of accounts are the best bank accounts for minors:
JOINT BANK ACCOUNTS
In the joint account, both the child and parent can hold an account jointly. Mostly the married couples hold this type of account to look forward to their savings. Here, both the child and parent can make the deposits and withdrawals of funds. Parents can control the account, when the children are too young to do legal work, such as signing papers or reading the instructions and fulfilling them accordingly. Parents can also apply the spending limits on these types of accounts. After the desired level, the children must request their parents to give them the money. Joint accounts are useful for the day-to-day expenses or short-term financial goals.
CUSTODIAL BANK ACCOUNTS
The parents can hold or establish the custodial bank account without involving the trustee. Mostly, it is based on cash only. The minors can act as the beneficiary in these kinds of accounts, till they reach the legal age of maturity. The account holder acts as a custodial to the bank account for the minor. Normally a third person does this work for the minor and that person can be a parent, guardian, or any person within a legal capacity. The custodial must maintain the whole detail of the account so they can hand it over to the child when they reach a certain legal age. Here is an example of such kind of account.
CHASE FIRST BANKING
In this type of banking, a debit card is designed to teach the children about basic budgeting or financial transaction management. Normally these kinds of bank accounts are for minors of the age of 5 to 17. The chase first accounts are like guidebook and can be called a guide account which will guide the children in the right direction in a controlled environment, to prevent any financial problems. These accounts give complete details to the parents about the spending of their children and all other transactions. Eric, who is one of the best masonry Baltimore contractors, did this for his kids and really liked the service. See this link for to get a good idea of Chase first banking.
GREENLIGHT BANK ACCOUNTS
The GREENLIGHT bank accounts make it easy for the parents to manage their young children’s funds and money management. It has kid-friendly debit card, so there is no need to involve the cash. You can be tension free by using this account when it comes to handling the cash. This account is also technology-friendly for both parents and children. It has a feature through which the required allowances would be transferred without making any manual deposit and it can also be managed through its mobile application.