Chase First Banking Review: Teach Your Child Money Management

Every child needs to learn basic money management skills.

We talk a lot on Think Save Retire about how our school system in the U.S. tends to fail us in that regard. Money management is arguably the most important skill for an adult to have, yet our schools don’t spend nearly enough time teaching our kids the fundamental principles.

That responsibility falls largely on the shoulders of parents. Most parents I know (myself included) spend so much time making the money to keep food on the table, that it can be tough to even know where to begin when it comes to teaching them about money.

But of course we know that the best and most effective way for kids to learn anything is by getting hands-on experience.

That's where Chase First Banking comes in.

What is Chase First Banking?

Chase First Banking is a new program that allows parents to own and manage a checking account with a debit card in their child’s name.

Children can learn basic money management skills and experience banking and debit cards while under the guidance of a parent or guardian. Greenlight, a popular program for kids’ debit cards, powers the account.

As a parent, you have the ability to monitor and control every aspect of the account while helping your child develop essential skills to prepare them for adulthood. This type of real-world learning is extremely valuable for kids, and it can be fun as well.

Deposit money into the Chase First Banking account with a transfer from your own Chase checking account using Chase.com or Chase Mobile®.

Withdraw money from the account in a few different ways:

• Online purchases using the debit card
• In-store purchases using the debit card
• ATM withdrawals
• The parent or guardian can transfer money back to their account using Chase.com or Chase Mobile®

The account is very flexible and allows you to determine the exact restrictions in place for your child. You can set limits on where and how much your child can spend and monitor details in the app at any time. You can also set up customizable alerts for specific activity.

Eligibility Requirements and Fees

To open a Chase First Banking account for your child, you (the parent or guardian) must have a Chase checking account in your name. The qualifying Chase checking accounts include:

• Chase Secure Checking
• Chase Total Checking
• Chase Premier Plus Checking
• Chase Sapphire Checking
• Chase Better Banking® Checking
• Chase Premier CheckingSM
• Chase CheckingSM
• Chase Private Client Checking

You can open a Chase First Banking account for children 6-17 years old, and you can have up to five Chase First Banking accounts per parent or guardian. The adult and child must have the same residential address to open the account.

One of the major perks of Chase First Banking is the $0 monthly service fee for customers who have a qualifying Chase checking account. The Greenlight platform normally includes a fee of at least $4.99 per month, but Chase offers the account and use of the debit card for no monthly fee. There is also no fee for using the debit card at more than 16,000 Chase ATMs.

Spend, Save, and Earn

Chase First Banking features “spend”, “save”, and “earn” categories to help kids learn about managing money and build good habits. These sections are broken out in the app to make the account easy to manage.

• Spend. The parent or guardian can use Chase Mobile® to set rules that dictate how and where the child can spend money. These rules can include limits in categories like retail or restaurants, limits to the amount that can be spent on any purchase, and limits on what can be withdrawn through an ATM. Kids can request money, which the parent or guardian can either approve or deny. Customizable alerts are sent based on rules set by the parent.
• Save. Kids can start to develop healthy savings habits by creating their own savings goals and transferring money toward those goals. They can track progress at any time through the app.
• Earn. Parents can set up regular recurring payments (daily, weekly, or monthly) as allowance. The allowance will be automatically transferred from the parent’s account into the kid’s account. One-time chores and payments can also be set up.

Real-World Financial Education for Your Kids

Chase First Banking is exciting because it allows kids and teens to get incredibly valuable real-world experience with money in a controlled environment.

Kids may or may not learn through theoretical lessons, but they will learn if given a chance to manage real money with the proper guidance and help.

Kids get excited about having their own money and gaining some freedom to choose what they do with that money. Whether they’re saving for a specific goal or using their money to buy something they want, they’re getting experience making the types of decisions they’ll need to make daily as an adult.

With the help of a Chase First Banking account, kids and teens can get experience using a debit card and make some basic money decisions. They have the chance to decide how they want to use their money, and they’ll learn the importance of making sound financial decisions.

At the same time, parents can control the account and set whatever restrictions are appropriate. With customizable spending limits and restrictions, parents can give kids as much or as little freedom as they choose. This means you can start small and gradually give your child more freedom as they get more experience and become more responsible. That’s part of why this program is appropriate for kids as young as six years old, all the way up to 17 years old.

Parents will also appreciate the convenience of automating allowance and setting up one-time payments for specific chores. The money is transferred efficiently from the parent’s checking account to the kid’s account.

This type of real-world education is worth paying for, and the Greenlight program usually comes with a monthly service fee that many parents are willing to pay, thanks to the benefits for their kids. However, Chase checking customers now have access to the program with no monthly service fees, making it an excellent opportunity for parents and kids alike.

Pros and Cons of Chase First Banking

Trying to decide if Chase First Banking is right for you and your child? Here is a quick summary of the pros and cons.

Pros:

• Practical money-management experience for kids.
• Parental controls give the child freedom to learn without the risk of making costly mistakes.
• Convenience through Chase Mobile®.
• No monthly service fees.
• Incorporate allowance and chores.
• Debit card can be used online, in stores, and at ATMs.

Cons:

• The parent or guardian must have a Chase checking account.
• Only one parent/guardian can be linked to the account.

Final Thoughts

There is a lot to like about Chase First Banking. Kids can safely learn essential money lessons thanks to parental controls. With no monthly service fees, there’s minimal downside to the program. If you’re looking for an effective way to help your child or teen get more experience managing money, be sure to consider Chase First Banking.

Frequently Asked Questions:

What is Chase First Banking and how does it work?

Chase First Banking is a program that enables parents to manage a checking account with a debit card in their child’s name, designed for children 6-17 years old. It's powered by Greenlight and allows children to learn basic money management skills under parental supervision. Parents can monitor and control account activity, set spending limits, and use the account to teach their children about saving, spending, and earning money.

Who is eligible to open a Chase First Banking account?

To be eligible for a Chase First Banking account, the parent or guardian must have an existing Chase checking account. The child for whom the account is opened must be between 6 and 17 years old, and both the adult and the child must share the same residential address.

Are there any fees associated with a Chase First Banking account?

One of the major benefits of Chase First Banking is that there is no monthly service fee for customers who have a qualifying Chase checking account. Additionally, there are no fees for using the debit card at over 16,000 Chase ATMs.

What features does Chase First Banking offer to teach kids about money management?

Chase First Banking offers features categorized into “spend,” “save,” and “earn” sections within the app. Parents can set specific rules and limits on spending, encourage saving by helping kids set savings goals, and manage allowance and chore payments to teach about earning. This hands-on approach helps kids develop healthy financial habits.

What are the pros and cons of using Chase First Banking for my child?

Pros:

• Practical, hands-on money management experience for kids.
• Parental controls to protect against costly mistakes.
• No monthly service fees for Chase checking customers.
• Includes features to manage allowances and chores.
• Debit card can be used for online and in-store purchases, and ATM withdrawals.

Cons:

• A parent or guardian must have a Chase checking account to open a Chase First Banking account.
• Only one parent/guardian can be linked to the account, potentially limiting joint management of the child’s financial education.