Allowance basics
Make your kids’ first experience in money management meaningful by following these guidelines.
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FAMILY FINANCE
Teaching kids about money doesn’t have to be hard.
Developing sound financial habits early on can have lifelong benefits, from better quality of life to stronger personal relationships. Below, you’ll find age-appropriate advice, tools and resources to help you raise money-savvy kids who grow into happy, productive adults.
For parents
Tips for engaging your child based on their age and cognitive development
Informative articles about timely family money topics
Banking solutions that may help you on your journey
Financial education resources by age group
Kids learn a lot about money by watching how you manage yours, so don’t keep it a secret. Openly discussing money matters at home is a great first step. Let your kids see how you think and act when making important financial decisions. Help them understand why you make the choices you do. As they grow, they’ll use these foundational experiences to guide their own money management.
Go to age-appropriate resources for your child using the links below.
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There’s lots more great stuff like this in the Greenlight app. Get complimentary Greenlight access with a Bank Smartly® Checking or other eligible checking account.1
Like what you see?
There’s lots more great stuff like this in the Greenlight app. Get complimentary Greenlight access with a Bank Smartly® Checking or other eligible checking account.1
Get serious about budgeting.
- Make a written list of needs (essentials, like food, rent and transportation) and wants (literally everything else).
- Follow the “50/30/20” rule, allocating 50% of your income to needs, 30% to wants and 20% to savings.
- Watch your finances like a hawk. A mobile banking app like the U.S. Bank Mobile App can help you monitor your spending, track your savings goals and more.
Smart checking for you. Greenlight for your kids.
Get complimentary access to Greenlight with a Bank Smartly® Checking account.1
Apply online in less than 5 minutes.
Enroll with Greenlight via the U.S. Bank Mobile App or online banking.
How old does a kid have to be to get a job?
Frequently asked questions about kids’ finances
Federal law prohibits kids under 14 years of age from being employed at most kinds of jobs, excluding certain types of farm work. Federal and state laws also limit the number of hours per day and per week minors under 18 can work, with different limits based on age and whether school is in session.
Kids under 14 years of age can’t be “traditionally employed” (except for agricultural work), but there are several ways your enterprising youngster can earn a few bucks:
- Home newspaper delivery
- Babysitting for friends and family
- Acting or performing in movies, TV, radio, or theater (or on YouTube)
- Doing non-hazardous work in a business owned entirely by you, their parent
State laws vary, so when in doubt, check yours at the U.S. Department of Labor website.
Young workers are often surprised (and not in a good way) by their first paycheck. You can help soften the blow by showing them this IRS guide that explains taxes and how they work.
In most cases, you’ll need to open a joint savings account with your child in the branch. It’s a simple process that usually takes less than 5 minutes. Here’s what you’ll need.
Kids under 18 can’t legally open a checking account on their own. But in most states, depending on the bank, you can cosign for a joint account (where the account is shared between you and your child) or a custodial account (where you own the account until your child turns 18). Age limits vary, but most banks offer joint checking accounts for kids 13 and up.
You can open a joint Bank Smartly® Checking or Safe Debit account with your child in less than five minutes. Learn how.
One great option for kids up to 17 years of age is a kids’ debit card account that you control. You can get a complimentary Greenlight account with any eligible U.S. Bank checking account.1 Learn More.
As with checking accounts, kids under 18 can’t legally be approved for their own credit card. But if you want your child 13 or older to start gaining experience with credit without affecting their credit profile, you can add them as an authorized user on one of your own credit cards.
If you have a U.S. Bank credit card, it’s easy to add and remove authorized users in online banking or the U.S. Bank Mobile App. See our credit card options.
You can set up a custodial brokerage account for your child to introduce them to the basics of investing. The assets in the account will belong to you until your child reaches the age of majority (usually 18 or 21, depending on the state you live in). But you can engage them in selecting and tracking their own investments in the account.
Because you’re not expecting to make a lot of profit on this type of investment account, there are a few features to look for when choosing a custodial brokerage account:
- Avoid stock-trading fees. Look for a brokerage that doesn’t charge a fee for each stock trade.
- Pay attention to minimum-balance requirements. Be sure you won’t be penalized for underfunding the account. Many online brokerages don’t have a minimum balance requirement.
- Make sure fractional shares are allowed. Just one full share of many publicly traded companies is worth more than your child will likely be able to afford. Fractional shares let young investors buy as little as a dollar’s worth of a stock at a time.
Check out Money As You Grow, a comprehensive collection of financial literacy resources for parents and caregivers from the Consumer Financial Protection Bureau.
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