What Percent of Teens Have Opened a Bank Account?

Financial literacy and early financial independence are increasingly important for young people. A bank account is a fundamental tool for developing these skills, offering a structured way to handle earnings and expenses. Establishing an account early on introduces teens to practical financial concepts beyond simply holding cash.

Prevalence of Teen Bank Accounts

Recent data indicates a significant portion of teenagers in the United States have opened bank accounts, though figures vary across studies. According to 2022 findings from Fidelity Investments, approximately 49% of teens aged 13-17 maintain a bank account. Other studies suggest higher figures, with some indicating around 58% of teens aged 13-17 have accounts, and up to 64% across the broader teen demographic.

Despite these figures, a notable percentage of teens still do not have a traditional bank account, with some older data suggesting around 34-35% of American teenagers rely predominantly on cash. This reliance on cash can make consistent saving more challenging. Account ownership often correlates with age, with a larger percentage of older teens having accounts as they begin earning income from jobs.

Influences on Teen Account Ownership

Several factors influence whether a teenager opens a bank account. Parental guidance and involvement are primary influences, as most teens (about 63%) report receiving financial advice from their parents or caregivers. Parents often initiate the process of opening an account and guide their children through its use. The availability and quality of financial education, both at home and in school, also contribute to account ownership.

Access to banking services, including the proximity of physical branches and digital banking options, can impact whether a teen has an account. Teens with convenient banking access or whose parents utilize online banking may find it easier to establish their own accounts. A teen’s age is also a strong determinant, as many open accounts when they start their first job and receive regular paychecks.

Advantages of Teen Banking

Having and managing a bank account provides numerous positive outcomes for teenagers, fostering essential financial skills. It promotes financial literacy by introducing them to concepts like deposits, withdrawals, and account balances. Teens learn practical budgeting and saving habits as they allocate money for various purposes, such as saving for a car, college expenses, or personal goals.

Managing an account also helps teens understand digital payment methods, as many accounts come with debit cards. This exposure builds financial responsibility and independence, as they become accountable for their own funds. Monitoring their account activity, whether through online portals or mobile apps, allows them to track spending and avoid overspending, preparing them for future financial well-being.

Opening a Bank Account for a Teen

Opening a bank account for a teenager is a straightforward process. Most financial institutions require the teen to be a certain age, often 13 or older, and necessitate a parent or guardian as a joint account holder. To open the account, you will need the teen’s identification, such as a student ID or passport, along with their Social Security number. The parent or guardian will also need to provide their own government-issued identification and Social Security number.

Common types of accounts available for teens include joint checking and savings accounts with a parent, or specific student accounts. The process involves visiting a bank branch with the required documents, though some banks now offer online application options. After the account is opened, the teen can receive a debit card, allowing them to make purchases and access funds, often with spending limits set by the parent or the bank.