Teen or Student Accounts
These accounts are designed to help teens learn money basics safely. They usually include a debit card, simple controls, and fewer fees, often with a parent or guardian connected to the account.
What Are Teen or Student Accounts?
A teen or student account is usually a checking account, sometimes paired with a savings account. The goal is to make everyday money simple while adding safety features and limits that help prevent expensive mistakes.
The simple version:
It works like a normal checking account, but with training wheels: alerts, limits, and sometimes a parent or guardian who can see what is happening.
What You Usually Get
- Spending alerts and low balance alerts
- Card lock and unlock in the app
- Limits on spending, transfers, or ATM withdrawals
- Easy way to see where money went
- Debit card for purchases
- Mobile app for checking balances
- Direct deposit for part time jobs
- Transfers between checking and savings
Good For vs Watch Out For
- Learning to track spending
- Getting paid from a job
- Saving for a goal like a phone or car
- Building habits with alerts and limits
- Overdraft fees and negative balances
- Monthly account fees
- ATM fees when using out of network ATMs
- Sharing your PIN or card info
The Biggest Money Mistake: Overdraft
Overdraft is an expensive “oops”
Overdraft happens when you spend more than your account balance. Many banks charge $30 to $35 for each overdraft. A single mistake can cost more than an entire week of allowance.
A safer setting:
Ask for overdraft to be turned off, so your card is declined instead of charging you a fee. Use low balance alerts to avoid surprises.
Rules for Using a Teen Account Wisely
Set up low balance alerts and transaction alerts
Never share your PIN, and never text it to anyone
Check your balance before you spend, not after
Use your bank’s ATMs to avoid fees
Lock your card in the app if it is lost
Move savings money to a separate savings account so you do not accidentally spend it
How to Choose One
No monthly fees, or easy ways to waive them
Overdraft off by default, or easy to disable
Free ATM access, or a big ATM network
Instant alerts in the mobile app
Easy transfers to savings
Key Takeaway
A teen or student account is a safe way to learn money skills in real life. Focus on avoiding fees, especially overdraft, and use alerts to stay in control. The goal is simple: make spending visible, make saving easy, and build habits you can keep as an adult.