When your child receives SSI, every financial decision feels like it comes with a catch. You want to teach them about money and maybe help them save for the future—but you're also terrified of accidentally putting their benefits at risk. The question of whether your child can have a bank account is more nuanced than a simple yes or no.
In this article, we'll cover:
- How SSI's resource limits apply to children
- Whether a child on SSI can have a bank account in their name
- The role of representative payees in managing children's benefits
- How to keep a child's savings without losing SSI
- ABLE accounts as a solution for children with disabilities
- Practical tips for managing your child's finances on SSI
Understanding SSI Resource Limits for Children
SSI (Supplemental Security Income) is a needs-based program, which means it has strict limits on both income and resources. For 2025, the resource limit is $2,000 for an individual. This applies to children receiving SSI just as it does to adults.
Resources include cash, money in bank accounts, stocks, bonds, and other assets that could be converted to cash. If your child's countable resources exceed $2,000 on the first of any month, they become ineligible for SSI for that month.
Here's where it gets complicated: for children under 18 living at home, Social Security also "deems" a portion of the parents' income and resources to the child. This means your own savings and income can affect your child's SSI eligibility, up to certain limits.
Can Your Child Have a Bank Account?
Technically, yes—but it counts toward the $2,000 limit. There's no rule saying a child on SSI cannot have a bank account. The issue is that any money in that account counts as a resource for SSI purposes.
If your child has a bank account with $500 in it, that $500 counts toward their $2,000 resource limit. Combined with any other countable resources, the total must stay under $2,000 to maintain eligibility.
For many families, this effectively means keeping very little money in a child's account. You might open an account to teach banking basics, but you'll need to keep the balance low and monitor it carefully, especially as the first of each month approaches.
The Representative Payee's Role
If you're your child's representative payee—the person Social Security has designated to manage their benefits—you have specific responsibilities for handling their SSI funds. As a rep payee, you must use the benefits for your child's current needs, including food, shelter, clothing, medical care, and personal items.
Any SSI funds you save for your child still count toward the $2,000 resource limit, even if the money is in an account in your name as representative payee. Social Security doesn't look at whose name is on the account; they look at who the money belongs to.
You're required to keep your child's SSI funds separate from your own money, which is why many representative payees open a dedicated account. Just remember that the balance in this account, combined with any other resources your child has, must stay under the limit.
Ways to Save Without Losing SSI
The $2,000 limit can feel impossibly restrictive, especially when you want to help your child build toward their future. Fortunately, there are some options.
ABLE Accounts are specifically designed for people with disabilities, including children. If your child's disability began before age 26, they may qualify for an ABLE account. The first $100,000 in an ABLE account doesn't count toward SSI's resource limit, allowing you to save significantly more. Contributions are limited to $18,000 per year (in 2025), and the funds can be used for qualified disability expenses throughout your child's life.
Special Needs Trusts are another option, particularly for larger amounts of money. A properly structured special needs trust doesn't count as a resource for SSI purposes. These are often used when a child receives an inheritance, legal settlement, or gift. You'll need an attorney experienced in special needs planning to set one up correctly.
Spending down before the first of the month is a common strategy. If your child's account balance is approaching $2,000, you can use those funds for allowable expenses—clothing, medical costs, educational supplies, or other items your child needs—to bring the balance back down.
ABLE Accounts: A Game-Changer for Families
ABLE accounts deserve special attention because they're so valuable for children on SSI. These accounts let you save for your child's future without the constant worry about resource limits.
To open an ABLE account, your child must have a disability that began before age 26 and meet certain criteria. The account can be opened in any state's ABLE program—you're not limited to your home state. Funds grow tax-free when used for qualified disability expenses, which include education, housing, transportation, healthcare, assistive technology, and basic living expenses.
For children, an ABLE account can save for future needs like job training, a first apartment, adaptive equipment, or higher education. The account can continue into adulthood, providing a financial foundation that SSI alone could never offer.
Practical Tips for Managing Your Child's Finances
Keep a dedicated account for your child's SSI funds, separate from your own money. Monitor the account balance carefully, especially in the last week of each month. Consider opening an ABLE account as early as possible to start building savings. Document how you spend SSI funds in case Social Security asks for records. Teach your child about money using small amounts that won't jeopardize their benefits. Work with a special needs financial planner if you receive a large sum for your child.
The rules around SSI and children's finances are complex, but with careful planning, you can both protect your child's benefits and help them build financial skills and security for the future.
Managing your child's SSI benefits comes with a lot of responsibility. Purple offers checking accounts designed specifically for representative payees, helping you keep funds organized and track spending to stay compliant with Social Security rules.