The current picture of teen banking
About 60 to 70 percent of teenagers in the United States have a bank account, though the exact number shifts year to year and varies by age, race, and family income. Younger teens (ages 13 to 15) are less likely to have an account than older ones (ages 16 to 18). Teens from higher-income households and white and Asian teens open accounts at higher rates than Black and Hispanic teens, a gap that reflects broader patterns in banking access.
The data comes from surveys by the Federal Reserve, the Consumer Financial Protection Bureau, and organizations like the Pew Research Center. These surveys ask households directly whether anyone under 18 has a checking or savings account at a bank or credit union. The numbers have been climbing over the past decade, partly because more banks now offer teen accounts and partly because parents see banking as a financial literacy tool.
What counts as "having an account" matters. A teen might be listed as an authorized user on a parent's account, own their own account with a parent as co-owner, or (less commonly at younger ages) hold an account in their name alone. Banks count these differently, which is why you will see variation in the statistics depending on the source.
Key Takeaways
- Between 60 and 70 percent of U.S. teens have a bank account, with older teens and higher-income families more likely to have one than younger teens and lower-income families.
- Disparities in teen banking access track closely with race and family income, reflecting unequal access to banking services across communities.
- Teen accounts come in several forms: accounts owned by the teen with a parent as co-owner, accounts where the teen is an authorized user on a parent's account, or accounts in the teen's name alone.
- The percentage of teens with accounts has grown over the past decade as banks have expanded teen account offerings and parents have increasingly used banking as a way to teach money management.
Why the numbers vary by age and income
Younger teens are less likely to have accounts because many banks set a minimum age of 13 or 14 for a teen account, and some parents wait until their child is older and more responsible with money. By age 16 or 17, when teens start earning money from jobs, the rate climbs noticeably. A teen with a part-time job often needs a place to deposit paychecks, which pushes parents to open an account.
Income matters because banking requires an initial deposit, sometimes a minimum balance, and access to a bank branch or online banking. Families with less money may not have the cash on hand to open an account, may live far from a bank, or may distrust banks for reasons rooted in past experience. Unbanked and underbanked communities—where fewer people have traditional bank accounts—tend to have lower teen banking rates as well.
The racial disparities are real and documented. Black and Hispanic teens have lower account ownership rates than white and Asian teens, even when controlling for family income. This reflects both current barriers (fewer bank branches in some neighborhoods, language access issues, documentation requirements) and historical ones (redlining, discriminatory lending practices that shape family wealth and trust in banking).
What teen accounts actually offer
A typical teen account is a checking or savings account designed for someone under 18, usually with a parent or guardian as co-owner or supervisor. The teen can deposit money, make withdrawals, and use a debit card. The parent can monitor activity through online banking and set spending limits or restrictions on certain types of transactions.
Some teen accounts come with no monthly fees, no minimum balance requirement, and no overdraft charges—banks use them to build customer loyalty and teach financial habits early. Others charge fees if the balance drops below a certain amount or if the account sits inactive. A few offer small interest on savings, though rates are typically very low.
Teen accounts do not usually come with credit-building features. A debit card does not report to credit bureaus the way a credit card does, so having a teen account does not help a teenager build a credit score. That is a separate step that usually happens later, through a credit card or other credit product.
How teen account ownership affects financial behavior later
Research suggests that teens who have a bank account are more likely to save money and less likely to use high-cost financial services (like payday loans or check-cashing services) as adults. Having an account early also correlates with higher financial literacy scores and better money management habits, though it is hard to say whether the account causes the behavior or whether parents who prioritize financial education are more likely to open accounts in the first place.
The experience of banking—seeing deposits and withdrawals, understanding how interest works, learning to budget around a balance—appears to matter. Teens who use their accounts actively, rather than just having one sit dormant, show stronger financial skills by the time they reach adulthood.
Barriers that keep some teens unbanked
Not all teens have access to banking, even if they want it. Some barriers are practical: a family may not have the documents required to open an account (proof of address, identification), may live in a banking desert where the nearest branch is far away, or may not have internet access for online banking. Others are cultural or historical: families with immigration concerns, past negative experiences with banks, or distrust of financial institutions may choose not to bank.
Cost is another barrier. While many teen accounts are free, some require a minimum opening deposit or charge monthly fees if the balance falls below a threshold. For a family living paycheck to paycheck, even a small fee or deposit requirement can be a barrier.
Language access matters too. If a family's primary language is not English, opening an account can be harder if the bank does not offer services in that language or does not have staff who speak it.
The difference between teen accounts and being an authorized user
A teen can have a bank account in two main ways: as the primary account holder (with a parent as co-owner) or as an authorized user on a parent's existing account. These are different experiences. As a co-owner, the teen has more independence—they can make deposits and withdrawals, use a debit card, and see their own statements. As an authorized user, they may have a debit card linked to the parent's account but less visibility into the full account and less control over their own money.
Some surveys count both as "having an account," while others count only the co-owner arrangement. This is why statistics vary. A teen who is simply an authorized user on a parent's account may not feel like they "have" an account in the way that matters for learning money management.
Frequently Asked Questions
What age can a teen open a bank account?
Most banks allow teens to open an account starting at age 13, though some require age 14 or 15. A parent or guardian must be present and usually becomes a co-owner. A few banks offer accounts for younger children (ages 6 to 12) with parental supervision, but these are less common.
Do teen accounts build credit?
No. A debit card and checking account do not report to credit bureaus, so they do not build a credit score. Credit building usually starts later, through a credit card, loan, or other credit product reported to the bureaus.
Why do some families choose not to bank?
Reasons include lack of required documents, distrust of banks, language barriers, cost concerns, immigration worries, or living in an area with no nearby bank. Some families use alternative financial services like check-cashing or money orders instead.
Can a teen have an account without a parent?
Rarely. Most banks require a parent or guardian to co-own or supervise a teen account. Some banks may allow a teen to open an account alone at age 18, though policies vary by institution.
What should I look for in a teen account?
Look for no monthly fees, no minimum balance requirement, no overdraft charges, and a debit card. Some accounts offer parental controls so you can set spending limits. Compare a few banks or credit unions to see which offers the features that matter most to your family.