Open a Bank Account

Money has power. It can be used for good things or bad things. You can treat money like a useful tool, or you can become obsessed with it. Hopefully, you get to practice how to use it so that it becomes a tool for you to live a good life, rather than an obsession or something that makes you lose sight of who you really want to be. Money should work for you, not the other way around. If you can understand how money works, how to keep what you earn and earn more from it, you’ll gain confidence and financial skills to pursue your dreams. You can start by earning money and opening a bank account to safely hold it.

Getting Started:

1. Open a Joint Account. Your first step is to open a checking account. You’ll need a parent or guardian, to open it with you as a “joint account.” Most banks or credit unions offer a free checking account. Make sure there are no fees associated with opening or maintaining the account, regardless of your monthly “balance”, which means how much money is in the account. You can open the account online in many cases, though it can be nice to visit an actual branch building of a bank so that you know how to do that if you need to talk with a banker in the future.

2. Make your first deposit. Of course, to open a bank account you need some money to put in it! If you have some cash or coins saved at home, start there. Or maybe there’s a way to earn money from your family or in your neighborhood by taking on some small jobs. There is usually no minimum amount.

3. Get your checkbook and debit card. You’ll receive a checkbook and possibly a debit card with your account. Make sure to keep these somewhere safe.

4. Create a savings account next. When you’re ready, consider creating a savings account too. This is a step toward learning how to make your money work for you. With a savings account, the bank will keep your money safe and pay you for the privilege of doing that. The amount they pay you is determined by the interest rate — for example, if you put in $100 and the interest rate is 5%, then they’ll pay you $5 each year. This may not sound like much, but over time it can start to multiply how much money you have.