How to Deposit Money for a Child

Is your child starting to earn their own money? Maybe they have a side hustle, like babysitting, mowing lawns, or walking the neighbors' dogs for cash. Or maybe you have an allowance system in which they can earn money by helping out around the house.

As exciting as this phase is for them, it also presents an interesting question: Where should your child or teen keep their money?

Carrying cash is becoming less practical in our world of card and phone payment methods and online purchases. Plus, carrying cash can be risky since it can be lost or stolen, leaving your child with little to no recourse. 

Digitizing cash by depositing money into an account or onto a card is a safer alternative to carrying cash. 

The default solution for a child or teen cash deposits might be to simply deposit the money into your existing account as their parent. You can deposit the cash into your account at your local bank branch or nearest ATM. Alternatively, you could simply designate money already in your account for your child, noting somewhere how much of the cash in your account is actually theirs for future use.

But this isn't a suitable solution for everyone. First, the parent must have an active bank account. It also requires keeping manual records of how much money in your account belongs to your child. And since you retain full control over the funds, it doesn't provide any opportunity to teach kids money management.

Luckily, there are practical alternatives available beyond simply using a parent's bank account for money earned by kids.

Option #1: Open a checking or savings account for your child

Many banks and credit unions offer checking and savings accounts for teens. Typically, these are joint accounts in which you would be listed as an account holder with your child. You and your teen would both be authorized to deposit their cash into the account at the bank branch or ATM. You could also transfer money from your account to theirs. This provides a safe place for kids to save cash.

With a checking account, your teen might also get a debit card, which they can use to spend their money online or in stores. This provides an additional opportunity to practice responsible spending.   

Pros:

Teaches real banking skills and can help build long-term habits like saving and budgeting.
The account is FDIC insured.
Teen accounts typically come with low maintenance fees. You may even find free checking account options. 

Cons:

Requires opening a new bank account for your teen, which may come with an activation fee.
The bank might require a review of your banking history and could deny the account application over a negative bank balance or frequent overdrafts.  
The bank may have a minimum age requirement (e.g.,13).
A minimum account balance may be required.
You may have to pay more for a debit card so your teen can access the funds.

Option #2: Reloadable prepaid debit cards 

Prepaid debit cards are growing in popularity as an option for digitizing teens' money without granting them access to a bank account. Not only is this a valuable solution for unbanked and underbanked families, but it's also useful for families with children and teens who simply aren't ready for their own bank accounts. 

Prepaid debit cards work similarly to traditional debit cards, but instead of being tied to a bank, the funds are loaded to the card directly. This provides an added layer of financial protection because you can limit the funds placed on the card, and your teen cannot overspend or overdraft. Some cards, like the Netspend reloadable prepaid card, even offer alerts so you can be notified when your child spends money or loads more money on their card. 

You and your teen can load cash onto the card at participating retailers¹, which often include convenient locations like 7-Eleven, CVS, Walgreens, Kroger, and Dollar General. You can also make digital money transfers² from your account as needed. Your teen can then use the card like a debit card, including for online purchases.

Pros:

Easy to use online and in stores.
Parents can stay informed and control how much money goes onto the card.
Spending is generally limited to the amount on the card, so kids can't accidentally overspend.
Doesn't require a bank account for you or your child.
Typically, it doesn't require a credit check³.
Affordable, typically with monthly plans or pay-as-you-go⁴ options.

Cons:

Monthly or per-use fees⁴.
Limited cash deposit locations¹ in some areas.

Option #3: Mobile wallets for kids 

Mobile wallets (also called digital wallets) allow users to digitize their money. Some of these mobile wallet apps, like Cash App and Venmo, offer teen accounts that come with some parental controls and often include a physical debit card for teens to use in stores and online. 

Depending on the app used, you and your teen may be able to deposit cash to the mobile wallet at participating retail locations. Or you could be the middleman, accepting your teen's cash and transferring the amount from your mobile wallet to theirs. 

Pros:

Fast peer-to-peer transfers.
Convenient online shopping and app integration.
No bank account or credit check required.

Cons:

If it's difficult to find a cash deposit retailer in your area, you may have to funnel your teen's cash deposits through your accounts and then transfer the funds to their wallet.
Possible fees and/or limits on how much can be deposited/withdrawn.

Option #4: Reloadable gift cards

Some prepaid gift cards, which can be purchased at grocery stores, convenience stores, and pharmacies nationwide, can be reloaded with additional funds, allowing them to serve the same general purpose as prepaid debit cards.

However, gift cards are typically limited to a specific store, brand, or company. For example, a reloadable Starbucks gift card can only be used at Starbucks. Similarly, to deposit cash to the card, you will likely need to visit a store location (which can be more of a hassle than loading funds to a prepaid debit card via services like Vanilla Reload or MoneyPak, which are more readily available at the grocery stores, convenience stores, and pharmacies that sell the cards).

In many cases, reloadable gift cards can be accessed via the company's app. So, your child may not need to have the physical card to use the funds, as long as they have a phone with the gift card saved to the app on their phone. 

It's also worth noting that reloadable gift cards don't typically offer the parental oversight features or protections that prepaid debit cards do. 

Pros:

Easy to purchase at many stores across the country. However, you need to confirm that the gift card is reloadable if you want to load more money onto it.
No credit check or bank account required.
Easy to use for purchases in stores and online. 

Cons:

Typically don't provide text or app-based notifications for parental oversight.
Might not be able to recover funds if the card is lost.
Reload fees apply.
Limited cash deposit locations in some areas.

Option #5: Financial programs through schools, communities, or nonprofits

Some schools, nonprofits, and community development departments partner with local banks or credit unions to promote financial literacy with real-world applications. 

Each program works slightly differently, but many of them allow kids to open savings accounts, make deposits at regular club meetings (or after hours at branch locations and/or ATMs), and track their balances over time.

This can be a good way to deposit money for kids, but these programs often focus on saving and do not offer debit cards or digital wallets for the kids to withdraw money.   

Pros:

Establishes saving habits.
Provides a hands-on learning experience with positive real-world consequences. 

Cons: 

Typically only offer savings, not checking or debit cards.
Doesn't provide opportunities to practice real budgeting and spending.

Choosing the best way to deposit money for your child

There's no one-size-fits-all solution when it comes to depositing money for a child. Whether your goal is to digitize cash for odd jobs, allowances, or cash gifts, the best solution depends on your family's banking access, your child's age, and how much financial independence they're ready for.

The options available to you offer varied levels of parental oversight and learning opportunities. Your chosen method of depositing money for your child can help them safely manage their earnings, build healthy financial habits, and gain hands-on experience with real-world money skills. It's a simple but powerful way to support your child's growing independence and prepare them for a more digital, cashless world.

No matter which route you take, consider involving your child in the process. Talk about the options, explain how each method works, and let them take age-appropriate responsibility. That way, you're not just depositing money — you're investing in their financial future.