Children’s accounts – what parents need to know

At first glance, a children’s account or children’s savings account sounds quite simple: you open an account, pay money in and save for later. But many parents soon realise that there’s much more to it than that.

When is the right time for a child to have their own account? Should pocket money be paid in cash or digitally? Does my child need a debit card already? And how can I not only save, but also provide for my child’s future in the long term?

These are precisely the questions many families in Switzerland are asking themselves. After all, money is no longer just coins in a piggy bank. Today’s children see adults paying by card, mobile phone or smartwatch. This often makes money seem less tangible to them. This makes it all the more important for parents to consciously guide their children in how to handle money.

A children’s account can be a good place to start. It’s even better when it’s not just about keeping money safe, but about understanding, planning, saving and learning.

What exactly is a children’s account?

A children’s account is an account opened in the name of a child or young person. Depending on the bank and the child’s age, it may be a savings account, a youth savings account, a youth account or part of a children’s or youth package.

Many Swiss banks have special offers for children and young people. The main difference between the account types is this:

• A savings account is primarily intended for putting money aside.
• A children’s or youth account, or a personal account for under-18s, is more likely to be used for day-to-day purposes – such as pocket money, first purchases, wages from holiday jobs or digital payments .

For parents, therefore, the first question is not about the interest rate, but what the child should use the account for: saving for the future or everyday use?

Who owns the money?

At most banks, the child is the account holder. The money therefore belongs to the child, and the parents manage it until the child reaches the age of majority. The most important consequence of this is that the parents’ power of attorney expires on the child’s 18th birthday. The child gains sole control over all their savings – whether or not they are mature enough to handle a certain sum at that point is legally irrelevant.

At some banks, the parents are the account holders. This has the major advantage that the parents can decide for themselves when and how the child receives the money. Our recommendation: hand the money over to the child in stages – precisely when it is really needed, for example for their first flat, their studies or their driving licence.

In the Clanq app, too, the money legally belongs to a parent, even if the «digital piggy bank» is opened in the child’s name. With savings goals, parents can clearly specify in the app what the money is being saved for.

When should a child have their own account?

The right time depends less on the child’s age than on their maturity and the parents’ goals.

For young children, a savings account or a digital savings goal is often sufficient. Parents, grandparents or godparents can set money aside there for later. The child does not yet need to manage the account themselves, but can gradually begin to understand: this money is for me, for a goal, for the future.

Once pocket money becomes a regular thing, having an account becomes more exciting. Then the child can learn to manage their money: spending some, saving some, and perhaps setting some aside for a bigger goal.

In other words, having a bank account can be a sensible idea from an early age. With Clanq, for example, parents can set up a digital ‘safe’ even before the child is born to save for them. There are still many small steps to take before the child is ready to manage their own finances and therefore needs their own account in their name.

Debit cards for children: sensible or too early?

Many parents ask themselves: Should my child have a card already?

The answer is: it depends. A debit card can be a good idea if the child understands that digital payments involve real money. However, it may also be too soon if it makes money completely invisible.

Digital payment methods require a little more guidance. Pro Juventute recommends teaching younger children how to handle cash first, as cash is more tangible. Card payments and mobile payments require a certain level of maturity and should be introduced by parents gradually and with support.

A key advantage of youth accounts and debit cards for children is that overdrafts are generally not permitted. In addition, daily and monthly limits or restrictions on online purchases can help children exercise self-control. 

For parents, the following questions are therefore crucial:

• Has my child understood that a card payment is real money?
• Can my child manage a weekly or monthly allowance?
• Can I, as a parent, set limits?
• Can I see what my child is spending their money on?
• Is there protection against going into the red or making unwanted online purchases?

A card is no problem when used in the right context. It becomes problematic when used without discussion, without limits and without a framework for learning.

Pocket money: cash, digital or both?

Pocket money is often a child’s first real experience of having their own money. It is not just a sum of money, but a learning opportunity.

Through pocket money, children learn:

• Money is limited.
• Different things cost different amounts.
• Spontaneous spending has consequences.
• Saving takes patience.
• Small amounts can grow over time.

Cash is particularly helpful at the start. A child can see how many coins they have and what’s left after a purchase. This makes money tangible.

Later on, digital pocket money can be a good idea. This is particularly true when children see in everyday life that adults hardly ever pay with cash anymore. It’s important that parents don’t just transfer money, but talk to their child about it: What would you like to buy? What would you like to save for? What was a good decision? What would you do differently next time?

Our tip: A good solution combines both. Young children can start with cash. At the same time, parents can set up digital savings goals, for example for a bike, a toy or, later on, for education and the future.

You can find more tips in our blog article This is what pocket money is all about.

Saving for children: a piggy bank, a children’s bank account or a digital savings goal?

Saving doesn’t start with large sums. Saving starts with a goal.

For a child, «for later» is often too abstract. «For a new bike» or «for the holidays» is much easier to understand. That’s why savings goals work better than an anonymous account balance.

Many Swiss families use traditional children’s or youth savings accounts to keep gift money, birthday money or regular contributions. Such accounts can be a good start. But they do not automatically address the issue of financial education.

After all, a child doesn’t learn to save simply because an account exists somewhere. They learn to save when they see a goal taking shape.

This is exactly where savings goals come in. Parents work with their child to decide: What are we saving for? How much more do we need? Who is putting money in? What happens if we wait instead of buying straight away?

We recommend making a clear distinction between short-term wishes and long-term goals. In the Clanq app, for example, it works like this: in the digital savings barrel, the child can set aside their pocket money for small treats. The digital piggy bank is for the bigger goals and the child’s future.

Grandparents, godmothers and godfathers: how can the family help with saving?

Many children receive monetary gifts not just from their parents. Grandparents, godmothers, godfathers and other close relatives also want to contribute.

The traditional approach: money is given as a cash gift or transferred to an account. This is simple, but often not very visible. The child doesn’t necessarily understand what the money is intended for. And the family doesn’t see the goal growing.

A more modern solution is joint saving. The family can contribute towards specific goals: education, a first bike, a language stay, a driving licence or simply a financial start to adult life.

Transparency is key here. Anyone contributing money should know what it’s for. At the same time, parents need to retain control. Not every family member needs access to the account or needs to see the full balance. It’s enough for contributions to be transparent and the savings goal to be visible.

Incidentally, Clanq’s Family Clan feature works exactly like this: family members can easily contribute to the savings and keep track of their contributions for the child. Parents have full access to the account.

Investing for children: when is saving not enough?

Many parents start with a savings account. That’s understandable: it feels safe, it’s simple and the money remains accessible.

But when it comes to long-term goals, another question arises: is saving alone enough?

If parents are setting money aside for their child over many years, investing can be a sensible addition. This is because, for goals with a long time horizon – such as education, university or starting out in adult life – funds or other broadly diversified investments can offer greater potential returns in the long term than a savings account.

Of course, investing involves risks. The value of investments can fluctuate. Parents should therefore only invest money that is not needed in the short term, and the solution must suit their own risk profile.

A savings plan can be particularly practical for families. Instead of investing a large sum all at once, a small amount is invested regularly. This makes investing part of everyday life – much like pocket money or saving.

At Clanq, this is precisely the idea at the heart of what we do: small amounts can make a difference over many years. This is especially true when saving, cashback and investing are considered together.

In this blog article, you can read more about what parents need to know about investments.

Financial literacy: the piggy bank as a learning opportunity

A digital piggy bank isn’t just a financial product. It’s a starting point for many important conversations.

• What is a wish?
• What is a goal?
• Why can’t I buy everything straight away?
• What does saving mean?
• What does investing mean?
• What is a budget?
• Why does something cost more in the shop than I expected?
• What happens if I spend all my pocket money on the first day?

Conversations like these don’t have to be complicated. They happen in everyday life: when shopping, when planning holidays, when paying at a restaurant, or when a child asks for something.

Parents don’t need to be financial experts to handle these situations. Above all, they need to be willing to talk about money.

You can find tips on how children can have fun whilst achieving their savings goals in our blog article How children can learn to save through play.

What parents should look out for when choosing a bank account

When choosing a family finance solution, it’s worth looking beyond the interest rate.

The following points are particularly important:

• Costs: Is the account free to hold? Are there any fees for a card, the app or cash withdrawals?
• Age: At what age can the account be opened? At what age can a card be issued?
• Control: Can parents set spending limits and monitor expenditure?
• Security: Is it impossible to go into the red? Can online payments be restricted?
• Learning factor: Does the solution help the child to really understand money?
• Savings goals: Can wishes and long-term goals be made visible?
• Family: Can grandparents or godparents easily contribute to the savings?
• Future: Are there opportunities to invest for the long term later on?

So the best account for children isn’t automatically the one with the highest interest rate. It’s the solution that suits the family and helps children become more financially independent, step by step.

Why Clanq thinks beyond just an account

Many traditional accounts answer a simple question: where is the money?

Clanq goes one step further and asks: How can this money be put to good use in everyday family life?

With Clanq, families can save money for their children, visualise savings goals and collect cashback. Every purchase can generate cashback that can be used for the child’s future. This way, saving doesn’t become an extra chore, but part of everyday life.

The wider family can also be involved. Grandparents, godparents or other close relatives can help save for a child – without taking control of the account.

And with Clanq Kids Banking, financial education becomes more playful. Children shouldn’t just see that money is there; they should understand how to manage it.

After all, it’s not just about opening an account. It’s about equipping children with a healthy approach to money.

Conclusion: A children’s account is the start, not the end

An account can be an important first step. But it’s only truly valuable if it becomes part of a wider financial journey.

Children don’t just need a bank account. They need guidance. They need conversations. They need to make small decisions, have real-life experiences and have adults to support them.

Whether it’s pocket money, a debit card, a savings goal or investing: what matters isn’t doing everything perfectly. What matters is starting early and making money visible in everyday life.

This is how children learn that money isn’t just something to be spent. It can be planned, saved, shared and put to use for the future. And that is perhaps the most important thing we can pass on to our children.

Get started with your family finances today! With Clanq, you can earn cashback, set digital savings goals and guide your child step by step in managing money. Download the Clanq app and give it a go!