What Is a Bank Account?
A bank account is a place where you keep your money so it’s safe, easy to track, and ready when you need it. You don’t need to hide cash in your sock drawer anymore!
There are two main types of accounts kids should know about:
1. Checking Account – For Everyday Spending
Think of this as your “spending” account.
- It’s where you keep money you plan to use soon—like for snacks, clothes, or fun.
- You can use a debit card (it looks like a credit card but pulls money directly from your account) to buy things in stores or online.
- Many checking accounts have mobile apps so you can check your balance and track your spending in real time.
Tip for Parents: Look for checking accounts with no monthly fees and parental controls. Some even send alerts when your child spends money.
2. Savings Account – For Future Goals
This is your “saving for later” account.
- Use it to save up for big goals—like a bike, a new phone, or even college.
- It earns interest, which means the bank pays you a little bit of money for keeping your savings with them.
- It’s a great way to build the habit of saving regularly.
Tip for Kids: You can even name your savings goals in some apps—like “New Laptop Fund”—to stay motivated.
