February 04, 2026
6 min read
Beyond apps: Why your teenager needs a bank account
A bank account is more than just a rite of passage for young people; it’s a gateway to financial independence and savvy money management. But with so many payment apps available today, some teens may consider skipping out on a bank account. Here’s what they could be missing.
Key takeaways
- Empower your teen with financial wisdom:Parents can use a bank account as a tool for teaching good financial habits and creating opportunities for meaningful conversations about money.
- Stay ahead of the game:Your teen can use a bank account to pay off credit cards or other credit sources, such as buy now, pay later (BNPL), which may help them avoid dings to their credit score.
- Protect your teen from fraud:A bank account may provide transaction information and other tools to help your teen monitor for fraud, scams, or cybersecurity threats.
Just like many teenagers, Louann Millar’s kids are familiar with handling money. However, when it comes to having a bank account, today’s teens may be opting out in favor of payment apps.
While payment apps and new financial tools are convenient, relying solely on them means young people will miss out on the value of a bank account. According to Millar, a leader of student banking at Wells Fargo, a bank account is an essential building block for a solid financial foundation. Plus, it can be a tool that parents use to help their child prepare for college or joining the job market.
Here are four ways parents can help their teens benefit from a bank account.
1. Engage in meaningful money conversations
Young adults can use a bank account as a way to manage their money, whether those funds are from a gift, summer job, or regular allowance. It’s also an avenue parents can use to discuss sustainable financial habits.
“For parents, a bank account can open the door to have a conversation about expectations and priorities with money. Any opportunity to have a conversation with our children is a good thing, especially for teenagers,” Millar said.
That’s key for teens who may not understand the value of a dollar or who aren’t intentional with money. For example, if your teen wants something they can’t afford, they could save by rounding up transactions with their account until they hit their goal. When that special thing arrives, they’ll have learned its value.
Tip: Once your child has an account, introduce goal setting by asking them what they want to save for, such as concert tickets or a spring break trip.
2. Give your teen a fuller financial picture
If your teen is using multiple apps to make transactions, then their money may be scattered across various platforms, making it harder to manage and see the full picture.
“These tools can be very easy for requesting money or making purchases, but they don’t provide young people visibility into all of their balances and spending, or help them put money aside for future spending,” Millar said.
By using a bank account, young people today can still get that big-picture financial view of their deposits, savings, and spending. Their bank may offer a virtual assistant, such as Fargo1, to help them understand their finances even more.
Tip: Their new account may also give them access to rewards or loyalty programs with discounts or cash back on qualifying purchases or from their favorite retailers.
3. Help your teen avoid money mistakes
One of the biggest financial mistakes a young person can make is taking on avoidable debt that follows them into adulthood. If your teen wants to use credit, like a credit card, a bank account is the typical tool credit cardholders use to save money to make on-time payments and keep their credit history intact, Millar said.
Buy now, pay later (BNPL) is a new credit option offering short-term loans typically directly from online retailers. Popular among younger households, according to the FDIC (PDF), BNPL may seem low-risk to some, but credit reporting agency TransUnion warns that late or missed payments could damage your or your child’s credit down the line.
“My son can’t even think about next week, much less what his credit score will be when he’s 18 or 19. But we know we want to set him up for success and part of that is ensuring if he makes a mistake, it’s in a safe and secure environment,” Millar said.
FAQ
What account features should teenagers consider using?
Parents may want to consider helping their teenager open accounts with features that help them learn to use money safely, such as account alerts or debit card controls like the ability to turn on or off a lost card2. Because teens may have limited or no income, having an account with low or no fees may be particularly important.
Some checking and savings accounts are designed for younger customers and have features tailored to them. For example, the Clear Access Banking account3 does not have a fee for primary account owners between 13 and 24 years old4 and has no overdraft fees5. Similarly, accountholders who are 24 years old or younger6 can avoid fees with a Way2Save® Savings account7.
What income can teenagers deposit into their accounts?
Teenagers can deposit any income they earn or receive into their accounts, such as an allowance, cash gifts, earnings from a part-time job, summer job, or side hustle.
Can multiple parents or guardians monitor their teenager’s bank account?
Yes, one or both parents or guardians can be a co-owner on their child’s Wells Fargo bank account.
Tip: If your teen is ready to use credit, they’re ready to build an emergency fund. These funds are meant to help them with unexpected costs and could keep them from making money mistakes.
4. Make sure your teen’s finances are safe
Contrary to popular belief, it’s not just older adults who are at risk of fraud or scams. In fact, 42% of bank customers under age 40 have experienced checking, saving, or debit fraud in the past year, according to a J.D. Power U.S. Financial Protection Satisfaction Study.
Just like ensuring your young adult is safe on social media, Millar said, so too should parents check on their kids’ finances. Parents with joint ownership or authorization can monitor their child’s bank account for fraudulent or suspicious transactions, or coach them to do so. This includes checking if their information has been stolen, spotting unauthorized charges, or identifying scams where they might be tricked into sending someone money.
If needed, parents with joint account ownership or authorization can lock their child’s debit card. Regaining control of their payments apps may be trickier, Millar said.
“Unfortunately, these scams are a reality our kids will have to face as adults. The good thing is having visibility into their accounts will help them mitigate some of the risks,” she said.
Tip: For parents, one way to protect your child is to practice what you teach and lead by example. Stay on top of the latest scams and set up account alerts and two-factor authentication and verification.
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