My son is 10 now so he is learning more about money all the time, we have never hidden from him the fact money is needed to live and buy things, he is also unmaterialistic and never really asks for much, he understands the value of money and has been taught to save his money but now he is 10 he feels he wants more financial responsibility so I tried to get him a bank card and his own current account however it looks like you need to be 11 to do that so I had a look at our other options for a bank account for him (Research accurate September 2018)
The Santander 1 2 3 Mini needs to be 13 before you get your own debit card but you can have an account held in trust. This account can only be opened if the parent has a Santander account that fits the criteria.
Prepaid cards – This is another option but by the looks they have costs of £15+ per year which kind of defeats the point of him saving his money if it will cost him, I mean obviously he has to pay for things but much money won’t be going through this account so I don’t want what little he has to be penalised. He may as well save in a money jar sooner than lose money. Cards that offer this such as go-henry. It also has a top up charge after introductory period of 50p each time so probably not the best solution.
Barclays offer an account for 11-15 year olds which offers a good range of interest, they also seem to really focus on keeping you safe and also teaching kids about money management so seems a trusted and respectable bank.
Nationwide – They offer a bank account when you are 11 that pays 1% interest so better than nothing but doesn’t meet my sons ISA savings of 3.25% (but it is tied away till 18) so for easy access cash this could be a good account.
Lloyds under 18 account you can open from aged 11, you get a debit card and also 1.50% interest. They also have a mobile app for the kids to help them manage their money.
Co-Operative Bank – They offer an account that can be managed by the child who is 7+, the account called Future fund offers currently interest of 0.34% and offers instant access to their cash. You can start saving from £1 and manage the account by branch or mobile app. This account seems to come with a passbook where children can withdraw money however you would still need a local branch to do this and is the account really worth it – You would get about £3 for the year if you had £1000 in.
Kids saver at the Halifax offer 2% interest with balances up to £5000 and unlimited withdrawals. They are managed in branch and online and as this is the best interest offered for a child’s
current account for the under 11’s age group it makes it look a pretty good account, I am not sure whether it comes with a debit card or not though.
I feel after my research he is probably better waiting a year and putting his spare change in a petty cash sort of tin and then using a wallet when he goes out or giving me his cash whenever he needs fortnite bucks.
I do also think that money management should be something taught in schools, it is a crucial lesson in life and many adults cannot even manage their money to pay bills and buy the essentials. Help your child learn the value of money by explaining how much things cost to them so they know the value otherwise it will be a big shock when they are an adult.