At my house, the “piggy banks” are actually two big jars, one for each of my kids. Over the years, they’ve filled up with birthday cash, gifts from grandparents, and more than a few visits from the tooth fairy. My kids love seeing them get fuller. Lately, though, I keep looking at those jars and thinking: that money is just sitting there.
When I talk with other parents, I hear the same thing again and again. Their kids are proud savers, the jars are filling up, and parents want to open a savings account. They’re just not sure where to start.
So, I’m walking through it with my own kids, and sharing what I’m learning along the way. Here are answers to the questions parents ask me most.
KEEP THE JAR TOO!
Young kids learn by touching and counting real money. Let the jar fill up at home, then make a trip to deposit it. The jar is where saving starts. The account is where it grows.
“That money is just sitting at home, not earning anything.”
It’s true. Money in a jar stays the same forever. In a savings account, it can earn interest, which is extra money the bank or credit union pays you for keeping your savings there.
On a small balance, interest adds up slowly. A few hundred dollars might earn a few dollars a year. The bigger win is everything else a savings account teaches:
Money can grow. Watching even a small interest payment show up helps kids see that saving pays off.
Money is safer. It’s protected from getting lost, spent on a whim, or “borrowed” by a sibling.
Progress is visible. A statement or app balance shows exactly how much they’ve saved over time.
“How do I pick a bank or credit union?”
Start close to home. Many credit unions offer accounts made just for kids, and some families like having their child’s account at the same place they bank. Before you open one, ask:
Are there monthly fees? A child’s account should be free or close to it.
Is there a minimum balance? Look for a low or no minimum to open and keep the account.
What’s the interest rate? Some youth accounts pay a higher rate on small balances.
Can I see the account online? A parent login helps you track deposits together.
Will you count our coins? Policies vary. Some count them for free, and some ask you to roll them first.
Is it federally insured? Look for NCUA insurance at a credit union or FDIC insurance at a bank.
JOINT or CUSTODIAL?
Two common types of kids' accounts
JOINT ACCOUNT
- You and your child both own it
- You can help manage the money
- The most common type for kids' savings
CUSTODIAL ACCOUNT
- The money legally belongs to your child
- An adult manages it until your child is grown
- The age they take over depends on your state
“Does my child need a debit card?”
Not for a savings account. Most kids’ savings accounts don’t come with a debit card at all, and that’s part of the point: savings is for keeping, not spending.
Debit cards usually come with a checking account. Many credit unions and banks offer teen checking accounts, often starting around age 13, with a parent as co-owner. That can be a great next step once your child has a job, an allowance, or regular spending to manage. For a first account, savings alone is plenty. In our house, the debit card conversation can wait a few more years.
“How can I involve my child in opening it?”
This is the fun part. The more your child takes part, the more the account feels like theirs. Here’s how we’re doing it with our jars:
Count it together first. We’re dumping out the jars on the kitchen table, sorting the bills, and writing down each total.
Decide what goes in. Not every dollar has to be deposited. Talk about keeping a little at home for spending and putting the rest in savings.
Let them carry the money in. Holding the envelope of cash makes it feel like a big moment.
Have them meet the staff. Many credit union employees love helping a young member make a first deposit.
Pick a goal. Ask, “What are you saving for?” and write it down. One of my kids is saving for a drum set (ah!) and the other one, a new baseball bat.
Check the balance together. Look at it online or on a statement every month or so.
WHAT TO BRING
Call ahead, since requirements vary. Most places ask for:
- Your child's Social Security number
- Your child's birth certificate or other proof of age
- Your government-issued ID
- The opening deposit, which might be that full jar!
Your Next Step
Pick a weekend to empty the jar together, then call one or two credit unions near you with the questions above. We’ll be doing the same at our house. A first savings account is a small step that can build a lifetime of good habits.
KEEP THE CONVERSATION GOING!
Members have access to our Spend It vs. Save It guide, which helps kids learn the difference between checking and savings, with a sorting activity and questions to talk through together.
BECOME A MEMBER →