Sometimes we would like to open a checking account for the minor child.
It’s a way to keep your savings and relatives’ gifts separate from our money. It is also a way to teach him how to manage small amounts of money from a young age. But is the minor child really the owner of those sums? Can you dispose of them independently? Let’s see the advantages and disadvantages of this choice.
A checking account for the minor child
In the perennial search for customers and liquidity, some banks offer current accounts for children from the age of 12. This is not a real current account because at 12 it would be impossible even the slightest operation on that account. Rather, they are savings books, thanks to which the money that the child receives from can easily be kept separate grandparents from the savings of the parents. In exchange for the liquidity that is left in storage, the bank recognizes a small interest. It is not at that interest rate that your child will see his or her resources grow, but it may be enough to balance inflation.
A real current account is instead proposed for minors up to 17 years old. Banks usually offer lower costs than adult checking accounts. However, it is a current account for all purposes, which therefore allows the minor to make payments and to have a prepaid card. Especially the latter will be very welcome for online purchases, to which our children dedicate themselves so often.
But remember to check the expenses and income on your child’s account. Since this is a real current account it will be possible to withdraw cash, issue checks and make both incoming and outgoing bank transfers.
Checking the current account of the minor child
Does the law allow you to check your child’s checking account? Much more. The administration of a minor’s assets is governed by art. 320 Civil Code. It establishes that the parents jointly or the parent who has sole authority represent the children until they become of age. This representation works for all civil acts. At the same time, the parents have the power and the duty to administer the assets of the minor child.
So you have both the power and the duty to verify the use made of your child’s current account, also to react to abuse or crimes by third parties.
The digital piggy bank as an alternative
If you are concerned that your child may not properly manage a normal current account and that it may prove too spendthrift, remember a valid alternative. We have already described how the digital piggy bank works. In this case, the money remains in your name and your child will not be able to dispose of it in any way. However, you can set a savings goal that simply has your child’s name. This way you will know that those sums are set aside for your child. And you won’t spend it because you won’t confuse it with your cash
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