The current picture of teen banking

Roughly 6 in 10 teenagers in the United States have opened a bank account, though the exact percentage shifts year to year and varies significantly by age, race, and family income. Surveys from the Federal Reserve and the Consumer Financial Protection Bureau show the range typically falls between 55% and 65%, depending on which teens are counted and when the survey was conducted.

The gap matters because it reflects real barriers: teens from lower-income households, Black and Latino teens, and younger teens (ages 13–15) are less likely to have accounts than their peers. A teen without a bank account cannot build a credit history, has no safe place to store money, and misses years of learning how transactions actually work.

The trend has been moving upward over the past decade, partly because more banks now offer teen accounts with lower or no minimum balances, and partly because parents increasingly see banking as a financial literacy tool rather than something to wait on.

Key Takeaways

  • Between 55% and 65% of U.S. teens have a bank account, though the percentage varies by age, income, and race.
  • Teens from lower-income families and younger teens are significantly less likely to have accounts than older or wealthier peers.
  • A bank account lets a teen build a transaction history and credit record that follows them into adulthood.
  • Teen accounts often come with parental controls, lower fees, and no minimum balance requirements.

Why the numbers vary so much

The percentage of teens with bank accounts depends heavily on who is being surveyed and when. The Federal Reserve's Survey of Household Economics and Decisionmaking asks a broad sample of adults about their children's banking habits. The CFPB's Financial Well-Being Survey focuses on a different population. Neither captures every teen, and both update on different schedules, so published figures range rather than settle on one number.

Age matters sharply: a 17-year-old is far more likely to have an account than a 13-year-old. Family income is one of the strongest predictors—teens whose parents earn over $100,000 per year have account rates 20 to 30 percentage points higher than teens in households earning under $35,000. Geography also plays a role; rural teens sometimes have fewer banking options nearby, though online banks have narrowed that gap.

Race and ethnicity show persistent differences. White and Asian teens have the highest account rates. Black and Latino teens have lower rates, reflecting both lower family wealth on average and, in some cases, less access to banks that actively market teen products in their communities.

What happens when a teen opens an account

A teen account typically requires a parent or guardian to co-sign or co-own the account. The teen receives a debit card, online access, and sometimes a physical checkbook. Many banks set the account up so the parent can see all transactions and set spending limits—a feature that appeals to parents but also means the teen's financial activity is not private.

Opening an account creates a paper trail. The bank reports the account to credit bureaus, which means the teen begins building a credit history years before they apply for a loan or credit card. This early start can mean a higher credit score by age 18, which translates to lower interest rates on car loans, mortgages, and other borrowing later.

The account also teaches the mechanics: how deposits work, how debit transactions clear, what happens when you overdraw, how to read a statement. Teens who learn these things at 15 with a parent watching are less likely to make costly mistakes at 20 with no safety net.

Barriers that keep teens from banking

The most common barrier is simple: a parent has not opened an account for them. Some parents distrust banks or prefer to keep money in cash. Others assume their teen is too young or does not need one yet. Still others lack banking access themselves and do not know how to start the process.

Documentation can be a hurdle. Most banks require a Social Security number, proof of identity, and proof of address. A teen without a state ID may need a birth certificate plus a parent's ID. Families experiencing homelessness or housing instability often cannot provide a current address, which disqualifies them from many banks.

Cost is a real factor for some families. Even though many teen accounts have no monthly fee, the parent may need to maintain a minimum balance or pay for overdraft protection. A family living paycheck to paycheck may not be able to lock up even $25 as a minimum balance, so they skip banking altogether.

Language barriers and immigration status also affect access. Undocumented immigrants and non-English speakers sometimes avoid banks out of fear or because the application process is not available in their language.

How teen account rates have changed over time

The percentage of teens with bank accounts has grown steadily since the early 2010s. In 2011, roughly 40% to 45% of teens had accounts. By 2019, that had risen to around 60%. The growth has continued, though the pace has slowed as the market reaches saturation among families with reliable access and income.

The rise reflects two shifts: banks have made teen accounts easier to open and cheaper to maintain, and parents have become more convinced that early banking teaches valuable skills. The pandemic accelerated the trend slightly, as schools moved online and parents looked for ways to teach financial responsibility remotely.

However, the gap between wealthy and low-income teens has not narrowed much. Both groups have seen increases, but the percentage-point difference between them has stayed roughly the same, meaning the absolute inequality has not shrunk.

What the data means for your teen

If your teen does not have a bank account, the data suggests they are in a minority but not alone. The reasons vary—some families choose not to bank, others face real barriers. Neither situation is a moral judgment, but both have financial consequences that compound over time.

A teen who opens an account at 15 will have a three-year head start on credit history compared to one who waits until 18. That difference shows up in credit scores, interest rates, and the ability to rent an apartment or get approved for a car loan. The earlier the account opens, the more time the teen has to build a positive record and learn from small mistakes before they matter.

If barriers are keeping your teen out of banking—documentation, minimum balance, language, or distrust of banks—those are worth addressing directly. Many banks now offer accounts with no minimum, and some community banks and credit unions work with families who lack standard documentation. The cost of not banking usually exceeds the cost of opening an account.

Frequently Asked Questions

Do teens need a parent's permission to open a bank account?

Yes. Anyone under 18 needs a parent or legal guardian to co-sign or co-own the account. The parent's name appears on the account, and the parent can see all transactions. At 18, the teen can open an account in their own name without parental involvement.

What happens to a teen's bank account when they turn 18?

The account usually converts automatically to a standard adult account. The parent's name may stay on the account, but the teen can now make independent decisions about it. Some teens ask the parent to remove themselves at this point; others keep the joint account for transparency or convenience.

Can a teen build credit with a bank account?

A bank account alone does not build credit—credit bureaus track borrowing and repayment, not deposits. However, opening an account creates a banking history that some lenders look at, and it is often a first step before a teen applies for a credit card or loan, which does build credit.

What if a teen's family does not have a permanent address?

Many banks require a current address to open an account. Families experiencing homelessness or housing instability can sometimes use a shelter address, a trusted friend's address, or a mail service address. Some credit unions and community banks are more flexible. Calling ahead to ask about options is worth the effort.

Is it better to open a teen account at a big bank or a credit union?

Both can work. Big banks often have more branches and ATMs, making it easier for a teen to deposit cash or withdraw money. Credit unions sometimes have lower fees and more personalized service. The best choice depends on which institution is most convenient for your family and which account terms fit your situation.