Survey on bank accounts for minors: parents encourage financial independence while retaining control
A quarter of Belgian parents open a savings account for their child before their first birthday. By their second birthday, more than half of children already have a savings account. Current accounts, however, are typically only opened during a child’s teenage years. By giving their children a bank account, parents aim to help them develop financial responsibility and independence. However, nearly 9 in 10 are also concerned about the associated security risks, and want to retain control over their child’s finances. These are the findings of a survey conducted by BNP Paribas Fortis among 1,600 Belgians with children aged 0 to 18.
Many Belgians require banking products from a very young age. The reasons for this vary from having a savings account for pocket money, to making payments with their own debit card and accessing a mobile banking app. Parents, for their part, want their children to learn how to manage money while still maintaining oversight. At the same time, they are concerned about security risks such as phishing, losing a bank card, as well as excessive spending.
A BNP Paribas Fortis study of 1,600 Belgian parents with at least one child under 18 examined why they do or do not open a savings or current account for their children, their concerns and their criteria for choosing a bank.
Savings accounts at a young age, current accounts in the teenage years
On average, parents open a savings account for their child when they are five years old. For one quarter of children (25%), this happens before their first birthday, and for more than half (52%) before their second birthday. Among minors with a savings account, 70% received it before the age of 10. Among 0 to 6-year-olds, 40% already have a savings account. This figure rises to 45% among 7- to 14-year-olds and to 62% among 15- to 17-year-olds.
The average age at which minors receive a current account is 10. Only 26% receive one before that age. In the oldest age group (15–17), 73% have a current account, compared with 37% of 10–14 year-olds. On average, minors receive a debit card and access to a mobile banking app at the age of 12.
A bank account for minors: pros and cons
Parents mainly open a bank account for their child because it is a simple way to give them money. It also helps to teach financial responsibility, which is a particularly important factor for parents of children aged 10 to 17. For half of parents of 15- to 17-year-olds (51%), independence is also an important criterion when opening an account, as it enables the child to make their own payments. Finally, maintaining control over finances remains an important consideration, regardless of the child’s age.
However, many parents consider their child to be too young for a savings or current account. This applies to 61% of parents with children aged 0 to 6 and 67% of parents with children aged 7 to 9. Among parents of 10- to 14-year-olds, this still applies to 49%. Notably, 30% of parents of 15- to 17-year-olds believe their child is not yet old enough to have their own bank account.
Parental concerns
Opening a bank account for a child can also raise concerns for many parents. Despite the ability to monitor accounts, 58% fear that their child will spend too much money once they have their own account. More than six in ten parents (61%) are concerned about the online purchases their child might make. Nearly half of respondents (48%) are also uncertain about the technical side of parental monitoring, such as locating their child’s account within the banking app.
In addition, almost 9 in 10 respondents (88%) have at least one security-related concern. These concerns decrease as children get older. Three-quarters (74%) mention fear of fraud and phishing. 65% are worried that their child’s personal data may not be sufficiently protected, and almost as many (62%) are concerned about the loss or theft of a bank card.
It is important to note that online banking is safe provided that customers keep their personal codes confidential. Fraudsters use a variety of techniques to trap victims. The sector federation Febelfin lists several signs that can help bank customers recognise fraudulent messages: https://febelfin.be/en/themes/fraud-security/online-fraudevormen/how-do-you-recognize-online-fraud. Safeonweb also offers useful tools, such as a mobile application that sends users alerts if infections are detected on their registered home network. Its website (https://surfwithoutworries.safeonweb.be/en/modules) also provides training modules to help protect against phishing and financial fraud.
Choosing a bank
When opening an account for their child, 60% of parents choose their own bank. This is often the simplest option, as they are already familiar with the bank, its staff and its services. It also facilitates parental oversight: through their own banking app, parents can monitor their child’s spending and manage their bank cards, for example by adjusting spending limits.
Parents also consider the level of security for online banking and expect strong authentication methods when logging into the mobile app and carrying out transactions. Account fees also play a role.
When asked how they inform themselves about accounts for minors, around half of respondents mention the website of their own financial institution. One third consult their bank advisor and one quarter rely on friends and family. Many also search for information themselves using online search engines. Interestingly, parents of children aged under 6 are more likely to obtain information via social media platforms or artificial intelligence.
Preferences regarding how to open an account are evenly split: half of respondents prefer to do so online, while the other half prefer to open an account with an advisor in a branch.
Welcome Pack and Hello4You
BNP Paribas Fortis offers two free account packs for young people. The Welcome Pack is designed for minors. Customers aged 18 to 28 can benefit from Hello4You.
The Welcome Pack includes a current account with tailored payment limits and online banking access. It is completely free of charge. All euro transactions, including payments, transfers, cash withdrawals at ATMs or counters, and downloading account statements, are free of charge. Only the postal delivery of statements incurs a fee. Parents can monitor their child’s transactions via their own Easy Banking Web or Easy Banking App. Minors can also receive a free debit card and, with parental consent, access the Easy Banking App from the age of 12. Parents can easily adjust payment limits.
On the customer’s 18th birthday, the Welcome Pack is automatically converted into Hello4You. This account package is also free up to the age of 28.
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