Jeffrey Wade
Cashing a check for a child can be a great way to teach them about financial fundamentals and enhance their financial literacy. Generally, banks and credit unions will deposit checks made out to children into a parent's account, especially if the child does not have their own bank account. However, the specific guidelines for depositing a child's check into a parent's account may vary among financial institutions. In most cases, the parent or guardian must endorse the check by signing the back and providing their account number. Some banks may also require supplemental documents and the child's ID. Alternatively, a parent can open a custodial account for their child, which they control until the child turns 18 or older.
| Characteristics | Values |
|---|---|
| Who can endorse a check for a minor? | A parent or guardian can endorse a check for a minor. |
| How to endorse a check for a minor? | Print the minor's name in the endorsement section, followed by the parent or guardian's name, their relationship to the child, and the account number for the deposit. |
| What if the minor doesn't have a bank account? | Banks and credit unions will generally deposit checks made out to children into the parent's account. |
| What if the parent wants to open an account for the minor? | A custodial account can be opened for the child, which the parent controls until the child turns 18. |
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What You'll Learn
Ask your bank about their policy on depositing a child's check into your account
When it comes to depositing a child's check into your account, it's important to recognize that guidelines can vary among different banks and credit unions. Generally, banks and credit unions are amenable to depositing checks made out to children into a parent's account, particularly if the child does not have their own bank account. However, it is always advisable to inquire about their specific policies.
When approaching your bank, it is essential to understand their endorsement policy on the child's checks. Endorsement refers to signing the back of a check to facilitate depositing or cashing. In the case of a minor, the process is similar to endorsing a check for yourself, but with some additional steps. You will need to flip the check and print the minor's name in the endorsement section. Then, under the minor's name, print your name, followed by a hyphen and the word "parent" or an appropriate descriptor for your relationship with the child. Don't forget to include your account number or the minor's custodial account number, if applicable.
Different banks may have varying requirements for endorsing a child's check, so be sure to ask about any supplementary documents or the child's ID that may be needed. Some banks might suggest opening a custodial account for your child, which you can control until they reach the age of 18 or older. This type of account can be an excellent tool for teaching your child about money management and banking services.
While discussing their endorsement policy, it is also worth inquiring about the age requirements for minors to access banking services. Each bank or credit union sets its own rules regarding the minimum age for a minor to utilize banking services independently. Understanding these age requirements will help you navigate the process of depositing or cashing checks on behalf of your child effectively.
By proactively seeking information about your bank's policies and procedures regarding depositing a child's check, you can ensure that you follow the correct steps and provide any necessary documentation. This will ultimately make the process smoother and help you avoid any potential delays or complications.
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Provide supplemental documents and your child's ID
When cashing a check for your child, it's important to understand that the process is not as straightforward as cashing a regular check. Bank rules differ on how to endorse a check for a minor, so it's a good idea to understand your bank's requirements. Generally, banks and credit unions will deposit checks made out to children into the parent's account, especially if the child doesn't have their own bank account.
Each financial institution has its own requirements for depositing a check made out to a minor. Typically, banks will require you to have your own account with them before they'll cash or deposit a minor's check for you. Some banks might allow you to deposit the check if you follow their requirements for endorsing the check and include your child's name or signature, as well as your own. In some cases, you may need to provide supplemental documents and your child's ID. This could include a birth certificate or state ID. It's a good idea to bring extra documentation or your child's identification with you, just in case.
If your child's name is misspelled on the check, you will likely need to bring proof of identification for your child. However, this may not be enough to get the check deposited, as each bank has its own rules. In this case, you can contact the bank to determine its policy, or you might consider asking whoever sent the check to issue a new one with your child's name spelled correctly.
To avoid any issues, it's recommended to call your bank or visit its website to understand its specific requirements for endorsing and depositing a check made out to your child. Some banks may not require you to endorse the check if it will be deposited into a joint custodial account. Alternatively, you may be able to open a custodial account jointly owned by you and your child, which allows both of you to make deposits and withdrawals.
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Open a custodial account for your child
A custodial account is a savings vehicle accessible through a financial institution or brokerage firm that adults control for minors under the age of 18, though this can go up to 25 depending on state laws. Custodial accounts help adults save, invest and manage money on behalf of a child. There are two types of custodial accounts: UGMAs (Uniform Gifts to Minors Act) and UTMAs (Uniform Transfers to Minors Act). UGMAs are the original custodial accounts for children and have been around since 1956. They allow parents to purchase and hold financial assets such as stocks, bonds, ETFs, cash and so on.
With a custodial account, you can explain that the money belongs to the child and that you, as the custodian, are saving and investing for them until they reach adulthood. Anyone can contribute to a custodial account—parents, grandparents, friends, other family members—with no contribution limits, making them valuable gift opportunities for major milestones and celebrations. Individuals can contribute up to $19,000 free of gift tax in 2025 ($38,000 for a married couple). There's also no minimum to open an account, though certain investments may require a minimum initial investment.
To open a custodial account, all you need is basic information about your child: name, birthday and social security number. Once it’s set up, you manage all the action in the account, which revolves around deposits and deciding which assets to invest in. You can also make cash withdrawals at any time, but the money must be used on behalf of your child. While the child is a minor, the custodian controls all investment decisions but may not change the child the account was established for. Withdrawals can be made at any time by the custodian, but they must be for the benefit of the child.
Before opening a custodial account, it is important to evaluate your goals, those of the child, and take stock of all your options to make sure that it's the right type of account for you. For instance, if you are a parent saving your own money for a child's education, a 529 account may make more sense than a custodial 529 or an UGMA/UTMA. That's because 529 accounts offer a greater degree of flexibility and control, as well as tax benefits. It may be a good idea to consult with your attorney or a tax professional to help choose the best option for your situation.
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Print the minor's name on the back of the check
Endorsing a check for a minor is a straightforward process. It involves printing the minor's name on the back of the check, indicating their status as a minor, and then providing the endorser's relationship to the child.
To begin, flip the check so that its back is facing upwards. Locate the endorsement section, typically a box at the top of the check with the words "Endorse Here", and print the minor's name in this box. After the child's name, insert a hyphen and write the word "minor". For example, if the minor's name is "Robert Smith", you would write "Robert Smith-Minor".
Below the minor's name, print your full name. Following your name, add a hyphen and write the most appropriate word that describes your relationship to the minor, such as "parent" or "guardian". For instance, if your name is "John Doe", you would write "John Doe-Parent".
Finally, sign the check with your usual signature. It is also a good idea to write the account number so the bank can deposit the check into the appropriate account. This could be your account or the minor's custodial account number.
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Sign the back of the check and provide your account number
When cashing an insurance check for a child, signing the back of the check and providing your account number is a crucial step. Here's a detailed guide on how to do it:
First, locate the endorsement section on the back of the check. This is where you will need to provide your signature and account information. Flip the check over so that the back side is facing you.
In the endorsement section, start by printing the child's name. You can simply write their full name, followed by a hyphen and the word "minor." For example, if the child's name is John Smith, you would write "John Smith-Minor."
Below the child's name, it's now time to provide your information as the parent or guardian. Print your name, followed by a hyphen and a descriptor of your relationship to the child, such as "parent." For instance, if your name is Jane Smith, you would write "Jane Smith-Parent."
Now, sign the back of the check. Sign your name neatly and clearly, preferably in the designated signature area. This step confirms your endorsement of the check, allowing you to deposit or cash it on behalf of the minor.
Finally, provide your account number. Below your signature, clearly write your account number or the minor's custodial account number, if applicable. This account number should match the bank account where you wish to deposit the funds from the check.
Remember, the specific requirements for endorsing a check for a minor may vary slightly depending on the bank or credit union's policies. Always ask your financial institution for their specific endorsement guidelines to ensure you follow the correct procedure. Some banks may require additional documentation or the child's ID, so it's essential to have those ready if needed.
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Frequently asked questions
If your child doesn't have a bank account, banks and credit unions will generally deposit checks made out to them into your account. Ask your bank or credit union for their endorsement policy on checks for children and endorse the check as instructed. You may need to provide supplemental documents and your child's ID.
If your child has a bank account and is old enough to use banking services, they can deposit the check into their account if you endorse it. To endorse the check, print your child's name in the endorsement section on the back of the check, then print and sign your name under theirs, along with your relationship to the child and the account number for the deposit.
Before cashing the check, make sure that it is not labelled as a "full" or "final" payment, as cashing it may be seen as accepting an unfair settlement. Also, be aware that if you are behind on child support payments, some of the funds will go toward that.
