The current picture of teen banking
Roughly 6 in 10 teenagers have opened a bank account, though the exact percentage shifts depending on which survey you look at and what year it was conducted. The Federal Reserve's Survey of Household Economics and Decisionmaking (SHED) and the FDIC's National Survey of Unbanked and Underbanked Households both track this, but they measure slightly different age groups and ask slightly different questions, so the numbers vary. What matters more than the exact figure is the trend: teen banking has grown steadily over the past decade, and the gap between teens who have accounts and those who don't is narrowing.
The reasons teens open accounts are practical. They need somewhere to deposit paychecks from part-time jobs, store money from family, or make online purchases. Some open accounts because a parent requires it; others do it on their own initiative. The age at which teens typically open their first account has also dropped—many banks now allow account opening at 13 or younger with a parent or guardian present.
Key Takeaways
- Approximately 60% of teenagers have a bank account, though this percentage varies by region, income level, and age within the teen years.
- Teens from higher-income households are more likely to have accounts than teens from lower-income households, creating a banking gap that can affect financial habits later.
- Most teen accounts are opened at a parent's bank or at a bank the parent chooses, rather than the teen selecting independently.
- Teens with bank accounts are more likely to develop savings habits and understand how money moves through the financial system.
Why the percentage varies by household income
Teen banking rates are not evenly distributed. Teenagers in households earning over $75,000 per year have bank accounts at much higher rates than teens in households earning less than $25,000 per year. This gap exists for several reasons: higher-income families are more likely to have bank accounts themselves, they have more money to deposit, and they may prioritize teaching financial habits early. Lower-income families sometimes avoid banks due to minimum balance requirements, overdraft fees, or past negative experiences with banking.
This creates what researchers call the "banking gap"—a difference in financial access and knowledge that can compound over time. A teen who opens an account at 14 and uses it through high school builds habits and credit awareness that a teen without an account may not develop until much later, if at all.
Regional and demographic differences in teen account ownership
Teen banking rates also vary by geography and race. Urban teens are more likely to have accounts than rural teens, partly because banks are more accessible in cities. Nationally, white and Asian American teens have higher banking rates than Black and Hispanic teens, a gap that reflects broader patterns in banking access and trust. These differences are not about teen behavior—they reflect where banks choose to operate and which families have had positive experiences with banking institutions.
Age within the teen years also matters. A 17-year-old is far more likely to have an account than a 13-year-old, simply because older teens are more likely to have jobs and need a place to deposit paychecks.
What types of accounts teens typically open
Most teen bank accounts are basic checking or savings accounts opened at the same bank where a parent already banks. Some banks offer accounts specifically designed for teens, with features like parental controls, spending limits, or debit cards that parents can monitor. Credit unions also offer teen accounts, often with lower fees than traditional banks.
Very few teens open accounts at online-only banks, partly because those banks typically require an adult to verify identity and set up the account anyway. The convenience of opening an account at a physical branch where a parent already has a relationship usually wins out.
How teen account ownership affects later financial behavior
Research suggests that teens who open bank accounts early are more likely to have accounts as adults and to use banking services regularly. They are also more likely to save money and less likely to rely on high-cost alternatives like check-cashing services or payday loans later on. The habit of depositing money into an account, watching it grow, and understanding how interest works (or how overdraft fees work) creates financial literacy that carries forward.
This is why the gap in teen banking rates matters beyond just the numbers. A teen who never opens an account during high school may not open one in college or early adulthood, which can make managing money harder and more expensive when they do eventually need banking services.
Barriers that keep some teens from opening accounts
Even though teen banking is common, real obstacles prevent some teens from opening accounts. Minimum balance requirements, monthly fees, and overdraft charges can be prohibitive for families with little money to spare. Some families distrust banks due to past experiences or language barriers. Others live in areas with few bank branches nearby. A teen cannot open an account without a parent or guardian, which means a teen whose parent is undocumented or has poor credit may face barriers even if they want an account.
Some states and cities have begun addressing these barriers by requiring banks to offer low-cost or no-cost accounts for young people, but these requirements vary widely and are not universal.
How to understand these statistics in context
When you see a figure like "60% of teens have bank accounts," remember that this is an average. It masks real differences between groups and does not tell you whether that percentage is rising or falling in your specific area. It also does not tell you whether those accounts are actively used or sitting dormant. A teen with an account that their parent opened but never uses is counted the same way as a teen who deposits paychecks and monitors their balance weekly.
The statistic is useful mainly as a marker of overall banking access. If the percentage is rising, it suggests more teens have a foothold in the financial system. If it is falling, it suggests barriers are growing. But the number alone does not explain why a particular teen does or does not have an account.
Frequently Asked Questions
What age can a teen open a bank account?
Most banks allow account opening at 13 or younger with a parent or guardian present. Some banks set the minimum at 16 or 18 if the teen is opening alone. Check with your bank for their specific age requirement and what documents you will need to bring.
Do teens need their own Social Security number to open an account?
Yes. Banks require a Social Security number to open any account. If a teen does not have one, they can apply for one through the Social Security Administration before opening a bank account.
Why do some teens not have bank accounts?
Reasons include lack of nearby banks, minimum balance requirements, fees, family distrust of banking institutions, and language barriers. Some teens also simply have not needed an account yet or have not been encouraged to open one by a parent.
Does having a teen bank account help build credit?
A basic checking or savings account does not build credit on its own. Credit is built through borrowing and repaying—credit cards, loans, or other credit products. However, having a bank account is often a first step toward understanding money management, which makes credit decisions easier later.
Can a teen open a bank account without a parent?
No. Teens under 18 must have a parent or guardian present and on the account to open a bank account. Some banks allow the teen to have their own debit card and access while the parent retains control of the account.