Step Review | Modern Banking For Teens

Teaching teens about money and sound financial management eventually comes down to them using real money.

There’s a fine line to walk for parents because you don’t want to give your teen too much money so that they become irresponsible. On the other hand, you want to give them enough that they have something feasible to manage and are able to set goals.

Step is a fintech app that is meant to help teens transition into real money management. It allows parents to view spending activity on their teen’s app (via the parent account) and even send money to their teen. While Step isn’t a full-blown checking account, it does have many checking account features. In this article, we’ll run through what they are and who Step is most likely for.

Step provides a “lite” version of a checking account for teens. You have to be 18 or older in the U.S. to open a checking account without a guardian. Those under 18 years of age can open a checking account with a guardian (i.e., joint checking), but there may be restrictions, depending on the bank they go with.

The Step Card processes like a credit card. But unlike a credit card, money is withdrawn directly from your Step account for each transaction. This means that teens can begin building credit with the Step Card without ever having to worry about missing payments or paying interest.

The Step Card is your debit card. It's a physical card. Once you open an account and request your card it takes 7-10 days to receive it. To use your step account until your card arrives, you can link it to Apple Pay or Google Pay.

Step provides debit card functionality for teens but other checking features are not present. For example, the only way to move money into your Step account is from another bank account via a debit card or by linking to a Cash App, Venmo, or PayPal account. Linking a debit card provides immediate money transfers. Going through CashApp, Venmo, or PayPal will take 1-3 business days.

There is no mobile check deposit or cash deposit. Paper checks don’t come with the account either. You can, however, easily make direct deposits from an employer. Just give the employer your account and routing numbers, which are the same for a regular checking account.

Withdrawing money is similar — you have to move money into another checking account. To date, cash withdrawals are not available either, but may be in the future according to Step.

You can visit the Step website and click the "Get Started" button to create an account. Anyone age 13 or above is eligible to join Step. However, every account will also need an adult sponsor (parent or guardian).

Yes - through its bank partner (Evolve Bank & Trust), Step insures deposits up to $250,000 per depositor through FDIC insurance.

For those that don’t have a bank offering teen checking, Step can be worth it. While it doesn’t have all the features that checking accounts offered by banks have, it has enough to meet most teens’ needs. Plus, its one of the only banking services that can help teens build credit without taking on the risk of credit card use.

If you want to compare similar banking services for teens, check out our checking accounts for kids review and best prepaid cards for teens. Some notable mentions are Axos First Checking and the FamZoo prepaid debit card.