Want to raise a money-smart kid? Try a bank account for a child

Raising a child in today’s fast-paced, digital-first world means preparing them for a future where money management is as important as academic achievement. As a financially aware parent, you’re not just focused on school grades or extracurriculars—you want your child to grow confident in handling money. Yet traditional methods like piggy banks, cash allowances, or the occasional “money talk” often lack the structure needed to build lasting financial habits.

Financial literacy demands more than good intentions; it requires hands-on experience within a controlled, supportive environment. Opening a bank account for a child delivers exactly that—granting your child real-world money management tools while you maintain the perfect balance of guidance and independence.

Let’s explore how a bank account for a child serves as a practical, effective tool to cultivate financial confidence and responsibility from an early age.

How does a bank account for a child work?
 

A bank account for a child, commonly called a minor’s savings account, is a special type of savings account designed specifically for individuals under 18 years of age. Unlike regular savings accounts meant for adults, these accounts have specific features that provide both security and learning opportunities for children while giving parents or guardians control and oversight.

Here’s how a minor’s savings account differs from a regular account:

1. Parental/guardian control
 

The account is opened in the child's name with the parent or guardian as the joint holder, who manages the account until the child reaches 18 years of age. This ensures supervision and guidance over the child’s financial activities.

2. Lower minimum balance or zero balance
 

A bank account for a child comes with very low or no minimum balance requirements. This way, such accounts become accessible to young savers.

3. Restricted transactions
 

Withdrawals and transfers are usually limited or require parental approval to prevent misuse or errors.

4. Educational focus
 

The account is designed to teach children about saving, spending, and digital money management in a safe environment.

One example of a well-structured bank account for a child is the IDFC FIRST Bank Minor’s Savings Account. This account combines safety, simplicity, and practical banking experience to offer a zero-balance, interest-earning account that allows kids to experience real banking tools with parental supervision. Parents have joint access and control through mobile apps, where they can set limits and monitor transactions.

Checklist for parents: 5 Smart steps before opening a bank account for a child
 

As a parent, you want to set your child up for success without feeling overwhelmed by the details. Before opening a bank account for a child, here are five practical steps to help you get started confidently and make this a positive learning experience for both of you.

1. Discuss with your child what they want to save for to set clear goals
2. Research bank accounts with low or no minimum balance, interest benefits, and parental controls
3. Explain basic banking terms like deposit, withdrawal, and interest in simple language
4. Introduce digital money concepts, including online transfers and payment safety
5. Plan regular check-ins to review the account and celebrate progress

Letting children use a real bank account teaches more than any lecture ever will
 

Teaching financial literacy in theory has its limits. Concepts like saving, interest, and budgeting become abstract without practical application. A bank account for a child turns these concepts into tangible experiences. By managing their own account, with your supervision, children learn to:

1. Track savings and spending
2. Understand interest accumulation on their balance
3. Make transfers digitally, preparing them for a cashless economy
4. Set savings goals and see their progress

Moreover, unlike an allowance paid in cash, which can be spent without tracking, a bank account for your child introduces accountability and discipline early on. Parental controls in the IDFC FIRST Bank Minor’s Savings Account serve as educational tools, allowing children to learn money management under supervision.

Features such as joint access, transfer limits, and app-based oversight provide parents with peace of mind while allowing children a measured level of independence. This balance fosters responsibility and confidence in managing money responsibly.

How to turn a child’s savings account into a hands-on money management classroom
 

A bank account for a child is most effective when actively integrated into everyday life. Here are some practical ways to leverage it:

1. Set savings goals together to help your little one decide what to save for, like a new bicycle or a video game, and create a simple plan using bank statements or the app to show progress
2. Encourage your child to check their balance regularly to understand the impact of saving and spending
3. Show how the bank adds interest to teach the value of letting money grow rather than spending immediately
4. Transfer their weekly or monthly allowance directly to their account to teach them how to manage money electronically with accountability
5. Help your child categorise expenses such as toys, books, and treats to analyse where money goes and promote mindful spending

The IDFC FIRST Bank Minor’s Savings Account offers digital convenience and attractive interest rates, making these activities seamless and rewarding. The account also upgrades to more advanced banking options as the child grows, supporting a gradual increase in financial management responsibility.

Make learning fun: Simple activities to teach financial literacy using your child’s bank account
 

Consider these practical and enjoyable activities to make financial learning more engaging and meaningful.

1. Savings jar challenge
 

Why it works – Kids understand physical money more easily. This challenge builds a bridge between physical savings and digital banking.

How to do it – Let your child fill a jar with coins or notes over a week or a month. Once it’s full, visit the bank together or transfer the equivalent amount into their account. Show them how the balance increases—and how interest is earned.

What it teaches –

a. Delayed gratification

b. Transition from cash to digital money

c. The value of saving regularly

2. Goal chart
 

Why it works – Visual tracking keeps kids motivated and helps them understand the purpose of saving.

How to do it – Sit down with your child to choose a savings goal (e.g., a book, a toy, a new game). Break the goal into smaller milestones and plot them on a chart. Every time they add money to their bank account, mark the progress.

What it teaches –

a. Goal setting and planning

b. Progress tracking

c. Purposeful saving

3. Interest race
 

Why it works – Watching money grow through interest is exciting and introduces kids to how banks reward saving.

How to do it – At the beginning of the month, guess how much interest they might earn. Record their predictions and compare them with the actual interest earned in their minor savings account at the end of the month.

What it teaches –

a. Basic understanding of interest

b. The value of compounding

c. Encourages saving over spending

How a bank account for your child builds lifelong financial confidence
 

By opening a bank account for a minor early, you set your child on a path where financial decisions come naturally rather than as a source of stress. It helps make your child more confident and reduces the likelihood of poor financial choices later in life.

A bank account for a child is a foundational tool for this journey. It encourages:

1. Responsibility by teaching accountability through real account management
2. Confidence by making banking processes familiar and approachable
3. Independence, as children begin making informed financial decisions
4. Discipline through the habit of saving regularly and tracking money
5. Awareness by introducing concepts like interest and digital transactions early

Why come to IDFC FIRST Bank for this specific problem
 

Raising a financially confident child requires more than advice—it demands practical, guided experiences. Opening a bank account for a child offers a real-world platform for teaching essential finance skills in a safe, supervised way.

IDFC FIRST Bank Minor’s Savings Account supports your child’s learning journey. This account evolves as your child grows, making it a long-term partner in financial planning. It offers:

1. Zero balance requirement makes it easy to start saving
2. Attractive monthly interest helps children see their money grow
3. Free VISA debit card issued in the child’s name with limits set by the guardian
4. Complimentary child education cover of ₹5 lakhs for additional peace of mind[1] [2] 
5. Unlimited free fund transfers for convenience
6. Unlimited free ATM transactions at IDFC FIRST Bank ATMs
7. Joint account access allows full parental supervision and control
8. App-based account management for tracking and setting transaction limits
9. Auto sweep to fixed deposit encourages disciplined saving
10. Complimentary personal accident insurance for added security
11. Seamless upgrade to a regular savings account when the child turns 18

Take the step today. Open the IDFC FIRST Bank Minor’s Savings Accountand give them the gift of financial confidence—one that will last a lifetime.

What makes IDFC FIRST Bank’s Savings Account stand out?

1. Zero fee banking on all Savings Account services including IMPS, NEFT, RTGS, ATM transactions, Debit Card, SMS alerts, and 30+ other services 
2. Earn attractive interest rates of up to 7.00% p.a. with monthly interest credits and the benefit of monthly compounding 
3. Higher ATM withdrawal and purchase limits for added convenience on your Savings Account 
4. Exclusive rewards and cashback offers on your Savings Account Debit Card, plus a rewarding loyalty program through FIRST Rewards 
5. Manage your money anytime, anywhere with the IDFC FIRST Bank mobile app and internet banking platform 
6. Enjoy cash flow analysis, investment options, and rewards tracking, all within your digital banking experience 
7. Recognised among the World’s Best Banks 2025 by Forbes in partnership with Statista