Ask Terry Questions Opening a bank account for a child

Opening a bank account for a child

By Terry Savage on June 27, 2020 | Wild Card

What’s a good bank an account to start for my daughter she is 13yrs old an I want to start saving her some money for the future

Terry Says

Well, that’s a great idea. Is the money meant for college? If so you could open a 529 college savings account. If you’re in Illinois, go to If in another state, go to and check out your state’s plan.

Now, here’s something to think about. If you save in an UGMA account (uniform gifts to minors) account, when she turns 18 the money is hers! And it counts very heavily against you in the financial aid formula. So you might be better of saving in YOUR name. You can’t just open an account in the sole name of a minor.

But if you are trying to teach her about money and investing. go to — and look for “baby acorns” — a new way to introduce children to saving and investing.



a personal
finance question