In the past few years, several US banks have promoted teen bank accounts to give teens the opportunity to learn how to save and invest. Most of these accounts come with very limited fees, so they could be a great way for teens to learn how to manage their finances.
When teens join the workforce, there are several options available to them to store and save their money. From basic
savings and checking accounts to bank accounts that allow students to invest their money in the stock market, there are several products that prepare students for financial readiness.
Best Bank Account for Teens
Below is a compiled list of various products that teens could use:
As a checking account opens to kids aged eight and up, opening a MONEY Teen Checking Account could help students learn to manage finances, learn more about earning interest, and expand
basic financial literacy. In addition, the account offers an APY (annual percentage yield) of 0.10%, meaning students would earn interest on their deposited funds. Capital One offers an app that is easy to use that would help parents and children plan for their future.
Axos Bank offers a product to teens from age 13 to 17 that limits children’s spending abilities, allowing parents to track their
teens’ spending habits. With a 0.10% APY, students can explore ideas of compound interest and essentially gain an advantage in the future by learning how to effectively manage finances at a young age.
Using a Fidelity Youth Account gives students the opportunity to learn
how to invest as well as provides students with a 4.96% APY on uninvested funds. With trading tutorials and a comprehensive brokerage portal, Fidelity allows students to invest in full and partial stocks in the stock market, enabling them to learn basic principles of investing. Parents are able to review account activity, which provides added security when students trade.
These accounts from JP Morgan Chase Bank give high school students the opportunity to
save money and learn basic personal financial literacy through making the most of their funds. Parents have significant control over these accounts so that children do not make any impulse purchases and develop responsible financial decision-making skills.
PNC’s virtual wallet allows teens to learn how to use a checking account and is relatively relaxed on restrictions such as a minimum balance that students have to meet. Therefore,
students who take up jobs could use PNC’s virtual wallet to save money and learn more about their finances.
While this list is far from exhaustive, it does include various accounts parents could set up for their students for families to become more financially aware and prepared. Savings and checking accounts are the most common types of accounts students usually use; however, brokerages are becoming more popular among teens to learn more about investing.
Additionally, there are several stock market simulators and competitions that
students could participate in both as an extracurricular as well as a way to learn how to trade and invest.