Opening a bank account can be teenagers’ first step towards becoming financially aware. Bank accounts for teens allow teens to develop financial awareness while learning about management. However, most teens and their parents have no idea what they need to open a teenage account. This article will walk you through all you need to know about opening a teenage account.
How a Teen Can Open a Bank Account
Opening bank accounts for teens is relatively easy. However, you need to know a couple of things before taking the step.
A Parent or Legal Guardian
To open a teenage account, you need a parent or guardian as the joint owner of the account. This is because teenage accounts are for kids between 13 and 17. Therefore, they’ll require guidance as they progress toward financial literacy.
Valid Identification
Valid identification for the teenager and the parent or guardian is also required. This could be a government-issued photo ID, social security card, driver’s license, birth certificate, or passport. Proof of address showing the teenager’s name and address of residence would also be required when opening a teen account.
Minimum Deposit
Once you provide the essential information required for identification, bank accounts for teens also require a minimum deposit to fund the account. All you need is a $5 deposit to get started with the account, and you can begin to access all the features and tools that come with owning a teenage account.
To access the $25 bonus deposit available for teenage accounts, teenagers must complete and pass the Teens and Money Balance Track module. When teenagers pass the exam with a score of 80% and higher, they’ll receive a $25 bonus deposit into their accounts. However, it should be noted that there’s only one bonus deposit per account; you can’t get the deposit twice.
Final Thoughts
Bank accounts for teens are relatively easy to open. With the help of a parent, grandparent, or guardian, a teenager can set up a teen account in no time. The teen account has many features and tools that can help teenagers develop financial literacy. Luckily, you now know all you need to set the account up and begin enjoying the many benefits of the account.
