checking
How to Endorse a Check for a Minor (Under 18)
The Winter Holidays are fast approaching, and for many people, that means the exchanging of gifts. For our purposes here, we aren't talking about the kind that can be purchased at the Mall or shipped via Amazon, we're talking about a personal check.
| Read Time: 5 minutes
Important to Know
- Bring the proper documentation to the bank
- Consider opening a custodial account
- Establish your relationship to the minor
- Start with your own bank or credit union
As if you needed one more thing on your to-do list this Winter, some carefree Uncle or generous Aunt is going to give the gift of money to your minor over the Holidays. To your child, the gift is everything. To you, the check is an obligation.
Why? Because unlike cash, you now need to deal with getting the check cashed or deposited into a bank. It's not that it's difficult to deal with, it's just that it's one more errand you have to run.
Getting Started at Your Own Bank
The first thing you should do is check in with your own financial institution, be it a bank or credit union. If you have a checking account or a personal savings account somewhere, it's highly likely that you will be able to cash or deposit that check on behalf of your minor.
The video below is from financial expert and retirement risk manager, Patrick Munro, of Northstar Financial Advisors. Mr. Munro, an expert in the field, discusses the proper approach to take when a minor has a check and cannot legally present it to the bank and its tellers.
Options for Check Cashing & Depositing for Minors
- Cash the Check
- Deposit into Minor's Account (Personal or Joint Custodial)
- Deposit into Parent/Guardian's Account
Endorsing Checks for a Minor
Depending on the rules, endorsing a check for someone under 18 can vary a bit from financial institution to financial institution. Some banks require parents and guardians to write in words their relationship to the minor (parent, guardian, etc.) on the backs of gift checks, while some will allow you to make the deposit with just your signature alone. The latter is more for joint custodial accounts or for when a child has a bank account of their own.
If you have any questions, visit your personal financial institution in-person and consult the teller or branch manager. They should be able to walk you through all of the requirements for endorsing a check for a minor. On second thought, perhaps it's best to call first or to visit the website of your bank or credit union. Doing so just might save you time and the potential aggravation of driving down to your bank, only to find that you don't have the correct documentation.
Documentation to Bring to the Bank
- Birth Certificate (for the Minor)
- Custodial Account Number (if your Child has one)
- Savings or Checking Account Number (yours, just in case)
How Do I Endorse a Check with a Misspelled Name?
Misspellings on checks are always tricky, especially when a minor is involved. Bringing documentation, such as a child's birth certificate, to the bank should help to alleviate any trouble that you may find with a misspelling.
Establishing a working relationship with a financial institution can truly help in scenarios like these, which is why we highly recommend that you open up a joint custodial account with your child when they are old enough to first grasp the concept of money management. That way, as they age into kid-friendly jobs like raking leaves, scooping ice cream, and shoveling, they'll have a safe place that isn't the piggy bank to store their money. You could also deposit their allowance into the account to add a layer of financial management and responsibility.
Back to misspellings, you may find that you simply need to go back to the person who wrote the check to request a new one. That's why the more documentation you can bring to verify the authenticity of the check, the better.
One other possibility is to visit the financial institution that the person has issued the check from. That is one way to cash a check without having an account. It doesn't solve the issue of the misspelling, but the bank, especially if it's the local bank that the payor uses.
Alternate Options for Money Transfers to Minors
Tech-forward parents and family members can utilize mobile payment services such as Venmo or even Zelle to pass funds between one another. However, it's best to read up on the Terms of Service prior to using any mobile or online service and make sure that you are both knowledgeable as well as comfortable with what you're signing up for.
For example, Venmo charges fees when using features such as Instant Transfer.
Wrapping Up
Establishing your relationship to the minor is of the utmost importance when it comes to endorsing a check for a child. Same goes for establishing the verifiable identity of the minor. That is why having the proper documentation is key to the transaction.
If your child is constantly receiving checks from generous family members, perhaps it's time to have them open a bank account. That will save everyone a lot of time and trouble. Doubly so if it's Holiday Season and you're stressed.