When your child is approved for SSI, one of your first responsibilities as their representative payee is setting up a proper bank account to receive and manage their benefits. For children, this process has some specific considerations—including the SSI resource limit, potential dedicated account requirements, and planning for the transition when they turn 18.
In this article, we'll cover:
- Your role as representative payee for a child on SSI
- Setting up a properly titled bank account
- Managing the $2,000 resource limit for children
- When a dedicated account is required
- What happens when your child turns 18
- Tips for teaching your child about money while on SSI
Your Role as Representative Payee for Your Child
When a child qualifies for SSI, a parent or guardian is typically appointed as the representative payee automatically—you don't have to go through a separate application process. Social Security assumes that parents will manage their minor children's finances. However, this official role comes with specific responsibilities.
As representative payee, you must use your child's SSI benefits for their current maintenance needs: housing, food, clothing, education, and medical care. You must keep their benefits separate from your own money, maintain records of how funds are spent, and file an annual Representative Payee Report with Social Security. Even though this is your own child, Social Security treats the role formally.
The representative payee appointment also means you're responsible for staying under SSI's resource limits and reporting any changes that might affect your child's benefits. Managing a child's SSI isn't quite like managing a typical allowance or savings account—there are compliance rules you need to understand.
Setting Up the Bank Account
Open a bank account specifically for your child's SSI benefits. This account should be separate from your personal accounts and from any accounts your other children might have. The account needs to be titled to show your representative payee role—common formats include "Your Name, representative payee for Child's Name" or "Child's Name by Your Name, rep payee."
Bring documentation when you visit the bank. You'll need your ID, your child's Social Security number, and your representative payee appointment letter if you have one. For parents who were automatically appointed, the letter confirming your child's SSI approval usually includes language about you serving as representative payee. If the bank wants additional documentation, you can request a confirmation letter from Social Security.
Choose an account with no monthly fees and no minimum balance requirement. Since SSI has strict resource limits, you generally can't build up savings in this account anyway. You want every dollar of benefits going toward your child's needs, not bank fees.
Managing the $2,000 Resource Limit
SSI has a strict $2,000 resource limit that applies even to children. This means the total countable resources held for your child—including money in their representative payee account—cannot exceed $2,000 on the first of any month. If it does, your child isn't eligible for SSI that month.
This limit means you generally can't save SSI benefits in the bank account. Each month's benefit should be spent on your child's current needs before the next benefit arrives. If you find that monthly benefits exceed monthly expenses, you may want to spend down on allowable items (clothing, shoes, supplies for school), pay expenses ahead when possible, or consider whether an ABLE account might help.
The resource limit can feel restrictive, especially if you want to save for your child's future. Fortunately, ABLE accounts offer an exception. These accounts allow individuals with disabilities (including children) to save up to $100,000 without affecting SSI eligibility. Money in an ABLE account doesn't count toward the $2,000 limit, making it the best option if you have excess funds you'd like to set aside.
When a Dedicated Account Is Required
If your child receives a large SSI back payment—generally more than three times the maximum monthly benefit (about $2,901 in 2026)—Social Security will require you to open a dedicated account. This is separate from the regular representative payee checking account.
Dedicated accounts must be savings accounts, and the funds can only be used for specific disability-related expenses: medical treatment, therapy, education and job training, assistive technology, personal assistance services, and housing modifications related to the disability. Regular living expenses don't qualify for dedicated account spending.
The good news about dedicated accounts is that the funds don't count toward the $2,000 resource limit. The bad news is the strict spending limitations. If your child receives a large back payment, you'll need to plan carefully for how to use those funds on qualifying expenses over time.
What Happens at 18
When your child turns 18, several things change. First, they're no longer automatically considered part of your household for SSI purposes, which can actually increase their benefit amount since family income no longer affects their eligibility the same way. Social Security will recalculate their benefit.
Second, and importantly, your automatic role as representative payee is reassessed. Social Security will determine whether your now-adult child can manage their own benefits or still needs a representative payee. If they're capable, they can take over their own finances. If they still need help, you can continue as representative payee, but you may need to go through a formal appointment process.
If you'll continue as representative payee after your child turns 18, you don't necessarily need to open a new account, but make sure the account is still properly titled. The same rules about keeping funds separate, staying under resource limits, and filing annual reports continue to apply.
If your child will manage their own benefits, help them understand the resource limit and other SSI rules. They'll need their own bank account in their name alone, and they'll be responsible for staying compliant.
Teaching Your Child About Money on SSI
Even with the resource limit making traditional saving difficult, you can teach your child important money management skills. Involve them in discussions about how benefits are spent. Let them see how you budget for housing, food, and their needs. As they get older, give them some autonomy over small amounts—maybe a personal allowance they can spend on things they choose.
Explain the SSI rules in age-appropriate ways. Help them understand that there are limits on how much they can have saved, and that this is something they'll need to manage as they get older. If they have earned income someday (which is possible and encouraged for people on SSI), explain how income affects benefits.
Consider opening an ABLE account when your child is ready. ABLE accounts not only help with the resource limit, they also provide a tool for teaching about saving and planning for the future. Many ABLE accounts offer investment options, which can introduce older children to basic investing concepts.
Managing your child's SSI benefits sets the foundation for their financial future. Purple offers representative payee accounts with tools that help parents track spending, stay under resource limits, and meet Social Security's requirements with less stress.