Parents Are Driving a Generational Shift

Today's parents are revolutionizing youth banking through their proactivity and planning. Research shows 63% have opened checking or savings accounts for their children, but the real story lies in the timing. Younger parents, particularly Gen Z and Millennials, are starting earlier --- 35% open an account before their child's sixth birthday and 46% between ages 6-12. This marks a significant shift from Gen X and Boomer parents, who waited longer (20% and 32%, respectively).

Parents' motivations for opening youth accounts are multifaceted, but they center around a few key ideas of early support for their children who aren't yet old enough to save and spend on their own:

• Financial education: Parents want to instill financial literacy in their children from an early age.
• Practical banking needs: Accounts provide a practical way to manage children's finances.
• Motivational benefits: Accounts serve as a tool to motivate children to save and manage money responsibly.

This early engagement is crucial as it sets the foundation for financial literacy and responsible money management. According to the FDIC, financial education combined with a deposit account experience at an early age can shape a young person's financial identity, attitudes and habits in a way that can last a lifetime.

Learn about our Youth Savings accounts here.