It's never too early to start teaching kids about money and how to manage it. In fact, a recent study by the Money Advice Service shows that adult money habits are set by the age of 7 years old. So, parents can shape their children's future by teaching children money habits early, which will help shape the way their children make financial decisions for the rest of their lives.
One way to do this is by opening a bank account or ordering a prepaid debit card like GoHenry. This can be a great way for kids to learn about saving, budgeting and spending.
In this article, we'll provide tips for parents who are considering opening a bank account for their child. We also discuss the benefits of using GoHenry, a prepaid debit card designed specifically for kids.
How old does a child need to be to get a bank account?
Most banks require that children be at least 13 years old to open an account.
However, with GoHenry, parents can open a prepaid debit card for children as young as six years old. This makes it easy for parents to start teaching their kids about money early on, which is incredibly important as studies have proven that money habits are established by the age of seven.
What are the benefits of your child having a bank account?
The first step is to learn about the benefits of your child having a bank account. There are many advantages to having a bank account, including:
- Learn about money and savings: A bank account is a great way for your child to learn about money. They can see how their savings grow over time and how to save for future goals with their hard-earned pocket money.
- Start learning about budgeting: A bank account can help your child learn how to budget by giving them real-world experience. This is also a great lesson for kids on how to spend within their means.
- Develop good money habits: By opening a bank account for your child, you can teach them good money habits that can stay with them for life, such as saving up for a goal and spending within their means. In fact, a Denmark case study highlighted this, as financial education has been a compulsory part of the Danish national curriculum since 2015. As a result, 71% of adults are now considered financially literate, and 80% of those aged 15 and over have savings. This shows that the core behaviours learned in early childhood are taken into adulthood and can, in turn, affect financial decisions.
Consider which features come with each bank account
There are a number of options when it comes to bank accounts for kids, so take your time and compare them. Some things to consider when choosing a bank include:
- Parental controls: Do banks offer parental controls that allow you to view and manage your child's account from your own app? This can be a helpful option if you want to keep an eye on your kids’ spending. With GoHenry, parents have a separate app where they can manage parental controls.
- Card options: Many banks offer debit cards for kids, and some offer greater control than others. Although not a bank account, a GoHenry prepaid debit card has spending limit controls and the option to block and unblock the card when needed.
- Financial education: Do kids get access to financial education programs to help them learn about money and how to manage it? GoHenry's in-app Money Missions helps kids learn about money in a fun and interactive way.
Assess if your child is ready for a bank account
Before you open a bank account for your child, it is important to think about if they are ready for one. Some questions to consider include:
- Are they responsible with their pocket money?
- Can they save up to a set goal?
- Do they understand the value of money?
- Would they use a debit card responsibly?
Even if the answer to any of the above is no, then a GoHenry prepaid debit card is a great option to get your child started, as there are parental controls to help your child manage their money properly and safely. It’s also great to help them spend money without spending beyond their means. Plus, there are many great ways to teach them about money from an early age and help build their financial education with in-app Money Missions.
Find out what you need to open a bank account for your child
In order to open a bank account for your child, you will usually need:
- Your child's birth certificate or ID
- Proof of parent's identity
- Proof of address
It's always a good idea to check directly with a bank what documents they might need.
It’s simple to open an account with GoHenry, you can apply online here today.
Can both parents manage their child’s bank account?
Many banks don’t offer parental controls. This can make it difficult to keep an eye on how your child is using their money and ensure that they’re being responsible and safe with the way they spend.
On the other hand, GoHenry allows both parents to manage a child's account, which means you’ll be able to easily track and manage your child’s money and spending habits. In fact, GoHenry’s co-parenting feature will allow both parents to set parental controls and get notified when their child spends money.
Open a prepaid debit card with GoHenry today
Most banks require that children be at least 13 years old to open an account, but GoHenry allows kids as young as six to have their own prepaid debit card. Get started today so your kids can learn independence while you get peace of mind.