Isn't That Rich Podcast

This week, we dive into an important topic that every parent, guardian, and even auntie or uncle should know about—minor bank accounts! Whether you're thinking about setting up a savings account for your newborn, or you want to teach your teen how to manage money, we're here to show you just how easy (and fun!) it can be.

Why Start Early?

You know the saying—start ‘em young! That’s why we invited Taylor Shanks, one of our fabulous customer service reps from Farmers State Bank, to break it all down. Taylor handles these accounts all the time and is the ultimate guide for families looking to set their kids up for financial success.

As Taylor explains, a minor account is a savings account opened by a parent, guardian, or even a grandparent (or a super cool aunt!). When the child turns 18, they get full access to the funds—hopefully, with a little more financial wisdom under their belt. Taylor’s mission? Get kids in the bank, teach them the basics of saving, budgeting, and banking so by the time they hit adulthood, they're ready to take on the world. 

Opening the Account: Easier Than You Think

No need for a treasure map or a scavenger hunt! All you need to open a minor savings account is:

1. The child’s Social Security number
2. Their full legal name and date of birth
3. Your photo ID as the parent or guardian

It’s that simple! In fact, at Farmers State Bank, you can open a minor savings account with just $5! That’s right—no $100 minimum, making it affordable to set up an account for each of your kiddos.

Saving for the Future (and Getting Cool Perks)

Sure, setting aside money now might seem like a small step, but it can grow into something significant over time—just ask Jill, who reminds us that her grandparents opened accounts for her when she was young. By the time she hit adulthood, she had some nice savings built up, and she didn’t even realize how much those little deposits added up!

We also offer perks that make saving fun for kids. Who doesn't love a good sucker and a coloring book? Bring the kids into the bank, and we’ll make sure they feel right at home (and maybe leave with a little more financial knowledge than they expected). It's all about creating an experience that turns banking into something they look forward to!

Budgeting 101 for Kids (and Parents)

Once your child gets a little older, it’s time to talk about budgeting and maybe even transition into a checking account. Taylor explains that once a minor is around 16 and starts driving or working, they can get a checking account (with parental supervision, of course). This is where they can start using debit cards, budgeting apps, and setting personal savings goals like saving for a car—or more realistically, V-bucks for Fortnite! 

Our app even has customizable features where you can set up savings goals—perfect for teaching kids how to save for something special, like a bike or their favorite video game.

Planning for Milestones

Parents, this one’s for you: by the time your kiddo turns 18, they’ll have full access to their account, which means they can do whatever they want with that hard-earned money! (Yep, even if they want to blow it all on pizza.) To avoid any financial shockers, you can move some of that money into a CD or another account before their 18th birthday, making sure they don’t splurge all at once.

Taylor recommends sitting down with your teen and having a chat about the importance of budgeting and saving. It’s a perfect opportunity to teach them how to manage their finances responsibly before they take that big leap into adulthood.

Final Thoughts: Get Started Today!

Whether you’re a parent, guardian, or just someone who loves the idea of gifting financial security, opening a minor account is one of the best things you can do for the next generation. Taylor made it clear: it's never too early to start teaching kids how to manage money. And the earlier they learn, the better prepared they'll be for life’s financial challenges.

Ready to set up your child’s future? Stop by Farmers State Bank today and let’s get started!