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Life

The Best Bank Account Types for Teens to Save Money

September 07, 2018

These are the best bank accounts to get teens started saving.

2 min read

Your child’s teenage years are a period of learning tough lessons about life, as well as money.

And if you’re a parent looking to make those lessons less painful, you can help them start saving now.

Here are some bank accounts for you to consider for any young saver looking to put their money to good use.

Custodial accounts

Custodial accounts (UGMA/UTMA  accounts) are brokerage accounts used to save for a child’s future expenses, like going to college or buying a home.

The custodian, usually a parent, is in charge of managing the account and its assets.

Savings accounts

Savings accounts accrue interest over time. With time, compounding can add up, but interest rates are usually too low to make much of a difference with standard savings accounts.

They’re different from custodial accounts, but generally, have some benefits for young savers.

Student checking accounts

A checking account is a good option for teens, too, as they can help them learn to budget and keep track of their spending.

Take off the training wheels

The best way to teach a teen about the importance of saving is to let them share control of their money. While custodial accounts let a custodian take the wheel, saving and checking accounts have a greater degree of freedom if a teen is ready to become financially responsible.

You can start saving and investing today on Stash, and all it takes is $5.

Investing, simplified

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*For all Tax related questions, please consult a tax professional.

By Stash Team

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