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Most of the time, financial success is achieved with good, healthy financial habits.

A healthy financial habit, for example, is having a savings account from an early age to acquire skills to control your financial life in a healthy way.

But can people under 18 open a savings account? This is a very common question for parents and even young people under the age of 18.

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In this article, you will clarify the age required to open a savings account, as well as other unmissable financial tips on the subject!

Why is it important for a young person to have a savings account?

Savings accounts allow young people, teenagers and even children to acquire the habit of saving from an early age.

Furthermore, it can be a good option for people under 18 to earn their first income and learn how to manage.

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After all, How Old Do You Have To Be To Open a Savings Account?

Well, firstly, the age factor for opening a savings account can vary according to the country, the states of a country or even according to the rules of the financial or banking institution.

It is also important to know that when opening a savings account at a banking institution, the person establishes a contractual relationship with the institution.

Therefore, it becomes difficult to accept the opening of savings accounts for people under 18 years of age (except for joint accounts).

For example, anyone who has not reached the age of majority cannot sign contracts – although in certain countries or states this age factor is reduced to 16 years.

How to do it then? The most common way to open a savings account for children under 18 is for a guardian to ask for the account to be opened in partnership with the underage person.

In this case, there is no minimum age to include a person under 18 in the savings account.

→ SEE ALSO: The Power of Compound Interest: Multiplying Your Money Smartly

How to open a savings account for a child or younger person

The first step in opening a savings account for a child is to shop around and find the best options that suit your family’s needs.

Some things to consider include:

  • Minimum deposit amount.
  • Fees or other expenses.
  • Best interest rates.
  • Branch locations for personal banking.
  • Educational resources available.
  • Child-specific accounts.

You will need to decide whether to open a savings account or a custodial account, such as a UGMA or UTMA.

For both types of accounts, contributions are irreversible, barring any withdrawals.

Buy a low-to-no-fee youth savings account with higher interest rate a bonus for making your money work harder for your child’s success.

Once you’ve found an option that meets your needs, it’s usually easier to open a savings account for your child if you already bank at the chosen institution.

You will need to provide identification for you and the child, such as a Social Security card, birth certificate, and government ID.

Finally, you will transfer funds electronically or by check to cover the initial deposit.

Is there a minimum or maximum amount when opening a savings account for minors?

Well, the amounts required may vary according to the rules of each financial and banking institution.

Some banks may not even require an initial money deposit.

But why can’t people under 18 open their own savings accounts?

Answering this question, in fact, there are no laws that prohibit the opening of accounts by people under 18 years of age.

However, as explained previously, the problem lies in the fact that an institution signs contracts with minors, right?

Therefore, it is difficult for someone considered a minor to open a savings account on their own.

Having a savings account from an early age means saving, but also managing money in a healthy way.

Thus, starting with this practice in childhood, children and adolescents learn to plan and achieve goals.

It also gives them the ability to respond to emergency situations.

Therefore, savings are the basis for good financial health, which should be part of your life as soon as possible!

The main benefits of a person under 18 having a savings account are:

1. Achieving goals

Young people learn that they can achieve many of their plans, such as acquiring material goods, but only by saving and managing money well.

→ SEE ALSO: What Will a Good Investment Advisor Do for Me?

2. Enjoy better conditions in the future

Having a savings account from an early age contributes to a future with a better financial situation – which also means a better quality of life and peace of mind.

3. Have resources for extraordinary expenses

Young people learn that it is important to have a financial reserve, in case unforeseen events arise.

A savings account is one of the best ways to have extra resources.

4. Increase income

Even though savings do not yield as much income as other investments, people under 18 can already realize with savings how important and possible it is to increase our income.

5. Carry out personal projects without getting into debt

With the savings account we learn from an early age that it is not necessary to go into debt to realize projects and dreams.

Finally, having a savings account from an early age helps us learn from mistakes and make better decisions.

By making mistakes from an early age, younger people develop more effective alternatives for dealing with possible losses and reversing such situations more effectively.

The savings account is part of this learning, right?

And that’s why financial education is so important not just on a theoretical level, but also on a practical level (like opening a savings account for your children).

Savings also allows you to learn from successes and, thus, trains and prepares you for more profitable, complex and risky investments in the future.

Don’t waste any more time and open a savings account for your children right now!

→ SEE ALSO: Dealing with a Cloned Card: Steps to Protect Your Finances