Want to Teach Your Kid About Money? Start with the Right Savings Account
Not all kids’ savings accounts are created equal—learn how to pick one that actually helps them grow wealth.
I just opened a savings account for my 9-month-old, and it got me thinking: What age do most parents open bank accounts for their kids?
Studies show that the earlier they start, the better. Kids who learn about money early often grow to have lower debt, more savings, and higher credit scores.
But after going through the process myself, I can tell you this—most kids’ savings accounts are awful. Low interest, pointless fees, and zero real-world lessons.
So before you open any savings account for your child, let’s cut through the noise and talk about the best savings accounts for kids.
The Problem
Most kids never learn to save, invest, or manage money.
Schools don’t prioritize financial education
Parents often see it as “something for adults”
Many kids don’t get hands-on experience with banking until their late teens—by then, they’re already far behind.
Of course, they can always catch up, but because of the knowledge gap, they usually become one of the 88% of teenagers who struggle with financial planning.
As they grow, prepare for college, and get ready to enter the real world, here’s how they feel:
3 out of 4 (74%) teens don’t feel confident about personal finance
50% have never made a budget
32% can’t correctly explain the difference between credit and debit.
Here’s the Point
Financial education needs to start at home—and start early.
A savings account is a powerful tool to introduce children to money. It’s foundational and helps them learn skills like saving, tracking expenses, and goal-setting.
It’s their first step to financial independence.
“The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains forethought, and so broadens the mind.”
- T.T. Munger
The 3 Best Savings Accounts for Kids in 2025
Not all savings accounts are created equal. Here are three of the best options for children under 12.
Capital One 360 Kids Savings
This is where I set up my child’s account, so I’ve seen the perks of this account firsthand:
Free Khan Academy financial literacy courses for kids
Kids co-own the account (not just a beneficiary)
No minimums, and zero fees
Can create multiple savings accounts, teaching kids to save for different goals.
Auto-upgrades to an adult Capital One 360 Performance Savings at age 18
Convenient parental controls + FDIC insured
2.50% APY, and much more.
Biggest drawback: Website features can be glitchy. Some features are often under maintenance. It needs improvement.
Ally Custodial Savings Account
Ally was founded by General Motors in 1919, started offering banking products in 2000, and has one of the best savings accounts for all ages:
3.70% APY (one of the highest available)
Savings buckets to organize money
No fees or minimum deposit requirements.
Uses AI to give personalized savings recommendations
Books and mobile apps are designed to teach kids about money
Biggest drawback: No physical branch.
Alliant Credit Union Kids Savings
Highly rated by USA Today, CNBC, and Investopedia. Here are some benefits:
3.10% APY (with a $100 minimum deposit)
No cap on APY earning potential
Articles and tips that teach kids to save money
$5 initial deposit paid by Alliant to get your child started
FDIC insured
Biggest drawbacks: A minimum of $100 must be added to earn the advertised 3.10% APY, a $5 monthly fee, and a parent must become an Alliant Credit Union member.
Pro tip: Find accounts suitable for your child’s age. Kids’ savings accounts are different from teen savings accounts.
A Word of Encouragement
Once your child understands savings, the next step is learning how to grow their money through investments.
In tomorrow’s PRO newsletter, I’ll show you a simple strategy to turn just $3.62 a day into $1 million for your child.
Until then,
-Isaiah from Earn Out Loud