Cashing a Check Made Out to a Child

Quick answer

• Generally, a parent or legal guardian must be present to cash a check made out to a minor.
• You’ll likely need to present your own valid government-issued ID and proof of your relationship to the child.
• Some banks may require the minor to be present, especially for larger amounts.
• Consider opening a joint bank account or a custodial account (like a UTMA/UGMA) for the child.
• For smaller amounts, some retailers might cash the check if you have proper identification.
• Always check with the specific bank or retailer beforehand for their policies.

Who this is for

• Parents or legal guardians who have received a check made out to their child.
• Individuals looking for practical steps to access funds from a minor’s check.
• Those who want to understand the requirements and potential hurdles involved.

What to check first (before you act)

Your Goal and Timeline

What do you need to do with this money? Is it for a specific purchase, savings, or to cover an immediate expense? Knowing your goal will help you decide the best way to cash the check and how quickly you need the funds.

Current Cash Flow

Do you have immediate cash needs? If so, cashing the check quickly might be a priority. If the funds are for long-term savings, you might have more flexibility in how you handle the deposit.

Emergency Fund or Safety Buffer

While not directly related to cashing the check, having an emergency fund is crucial. If unexpected expenses arise, knowing you have a buffer can reduce the pressure to access these funds immediately.

Debt and Interest Rates

If you have high-interest debt, you might consider using the funds to pay it down. However, most checks made out to minors are for amounts not significant enough to make a major dent in substantial debt. Prioritize understanding your debt situation to make informed financial decisions overall.

Credit Impact

Cashing a check typically has no direct impact on your credit score. However, how you manage the funds afterward (e.g., paying down debt, saving) can indirectly influence your financial health, which is reflected in your credit.

Step-by-step (simple workflow)

1. Identify the Payee: Confirm the check is made out to your child’s full legal name.

• What “good” looks like: The name on the check precisely matches your child’s legal name.
• Common mistake: The check is made out to a nickname or an incorrect name.
• How to avoid it: If the name is incorrect, you may need to contact the issuer to get a new check reissued.

2. Gather Necessary Identification: Prepare your own valid, unexpired government-issued photo ID (like a driver’s license or passport).

• What “good” looks like: You have a current, official ID ready.
• Common mistake: Your ID is expired or not accepted by the financial institution.
• How to avoid it: Check the ID requirements of the bank or retailer beforehand.

3. Gather Proof of Guardianship: Be ready to show documentation proving you are the child’s parent or legal guardian. This could be a birth certificate or court documents.

• What “good” looks like: You have a document clearly establishing your relationship with the child.
• Common mistake: Not having proof of guardianship readily available, especially if the child has a different last name.
• How to avoid it: Keep copies of important documents like birth certificates in a secure, accessible place.

4. Contact the Issuing Bank: If the check is from a specific bank, call their customer service or visit a branch to inquire about their policy for cashing checks made out to minors.

• What “good” looks like: You understand the specific requirements of the bank that issued the check.
• Common mistake: Assuming all banks have the same rules.
• How to avoid it: A quick phone call can save a trip and potential disappointment.

5. Visit Your Bank (or the Issuing Bank): Go to a bank branch. You will likely need to present your ID, proof of guardianship, and potentially the child’s Social Security number.

• What “good” looks like: The bank teller can process the check according to their policy.
• Common mistake: The child is not present when the bank requires them to be.
• How to avoid it: Ask the bank if the child needs to be present when you call ahead.

6. Consider Retailer Options (for smaller amounts): Some large retailers may cash checks, but their policies for minor checks can be strict. Call ahead.

• What “good” looks like: The retailer confirms they can cash the check and what documentation you need.
• Common mistake: Arriving at a retailer expecting them to cash it without verifying their policy.
• How to avoid it: Always call the specific store location first.

7. Deposit into a Joint Account: If you have a joint bank account with your child, you can deposit the check directly into it.

• What “good” looks like: The check is successfully deposited into the joint account.
• Common mistake: The account isn’t truly joint or doesn’t allow for minor deposits in this manner.
• How to avoid it: Verify the account type and rules with your bank.

8. Open a Custodial Account (UTMA/UGMA): If this is a recurring situation or for long-term savings, consider opening a Uniform Transfers to Minors Act (UTMA) or Uniform Gifts to Minors Act (UGMA) account. You can deposit the check here.

• What “good” looks like: The account is set up, and the check is deposited, with clear ownership rules.
• Common mistake: Not understanding the legal implications or tax rules associated with these accounts.
• How to avoid it: Discuss the options with your bank or a financial advisor.

9. Endorse the Check (If Required): The bank or retailer will guide you on how to endorse the check. It may require your signature as the guardian and possibly the child’s signature if they are old enough to write.

• What “good” looks like: The endorsement is clear and follows the instructions provided.
• Common mistake: Improper endorsement leading to the check being rejected.
• How to avoid it: Pay close attention to the teller’s instructions for endorsement.

10. Receive Cash or Deposit: Once endorsed and verified, you will either receive the cash or the funds will be deposited into your account.

• What “good” looks like: You have access to the funds as cash or in your bank account.
• Common mistake: Not getting a receipt for the transaction.
• How to avoid it: Always ask for a receipt, whether you receive cash or deposit the check.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not checking the bank’s policy beforehand	Wasted trips, frustration, and potentially being unable to cash the check.	Call the bank or retailer in advance to confirm their specific requirements for checks made out to minors.
Expired or insufficient identification	The bank or retailer will refuse to cash the check due to identity verification issues.	Ensure you have a valid, unexpired government-issued photo ID.
Lack of proof of guardianship	The financial institution cannot verify your right to act on behalf of the minor, leading to rejection.	Have a birth certificate or other official document proving your parentage or legal guardianship readily available.
Child not present when required	Some banks require the minor to be present, especially for larger amounts or specific account types.	Ask the financial institution if the minor needs to be present when you call to inquire about their policy.
Incorrectly endorsing the check	An improper endorsement can lead to the check being returned or rejected by the financial institution.	Follow the exact instructions provided by the bank or retailer for endorsing the check, which may involve your signature and the child’s.
Assuming all retailers cash minor checks	Retailers often have stricter policies and may not cash checks made out to minors at all.	Only attempt this for smaller amounts and after confirming the specific retailer’s policy by phone.
Depositing into a non-joint account	If the account isn’t set up correctly for joint ownership or minor deposits, the transaction may be declined.	Verify with your bank that the account is indeed a joint account suitable for depositing checks made to a minor.
Not understanding UTMA/UGMA implications	You might not be aware of the tax implications or the legal transfer of ownership that occurs with these accounts.	Consult with your bank or a financial advisor to understand the rules and benefits of custodial accounts before opening one.
Trying to cash a check with a misspelled name	The check issuer might not accept it, or the bank may require it to be reissued.	Contact the issuer to have the check reissued with the correct name to avoid complications.

Decision rules (simple if/then)

• If the check amount is small (e.g., under $50) and you have a strong relationship with a local grocery store or pharmacy that cashes checks, then try there first because they might have more lenient policies for small amounts, but always call ahead.
• If the check is from a large, national bank, then it’s best to go to a branch of that same bank because they are most likely to have established procedures for handling checks made out to minors.
• If the check is for a significant amount (e.g., over $500), then you will almost certainly need to go to a bank and will likely need proof of guardianship and your ID.
• If you have a joint bank account with your child, then depositing the check into that account is usually the simplest method because the account structure already accommodates shared ownership.
• If you plan to save the money for your child’s future, then opening a custodial account (UTMA/UGMA) is a good option because it provides legal structure for the funds and can offer tax advantages.
• If the check is made out to a nickname and not the child’s legal name, then you should contact the issuer to get a new check with the correct legal name because banks will likely reject it.
• If you are a legal guardian but not a parent, then be prepared to show court documentation proving your guardianship, as this is often required by financial institutions.
• If you need the cash immediately and cannot go to a bank, then check with large retailers that offer check-cashing services, but be aware their policies for minors are often very strict.
• If the bank requires the child to be present and they are unable to attend, then you may need to explore alternative methods or wait until the child can accompany you.
• If you are unsure about the process, then always err on the side of caution and call the financial institution or retailer first to avoid any surprises.

FAQ

Can I just deposit a check made out to my child into my own account?

Generally, no. Banks usually require checks to be endorsed and deposited into an account that matches the payee’s name. Depositing it into your personal account without proper procedures could be considered improper.

What if my child is old enough to sign their name?

Even if your child can sign, most banks still require a parent or legal guardian to be present and to endorse the check, especially if the child is under 18. The child’s signature might also be required in addition to yours.

How can I prove I’m the child’s parent?

You can typically use a birth certificate, adoption papers, or court orders that establish your legal guardianship. Your own government-issued ID will also be necessary.

What are UTMA and UGMA accounts?

These are custodial accounts that allow adults to transfer assets to a minor. The assets are legally owned by the minor but managed by a custodian (usually a parent) until the minor reaches a certain age, typically 18 or 21, depending on the state.

Can a store cash a check made out to a minor?

Some large retailers offer check-cashing services, but their policies for checks made out to minors can be very strict. It’s best to call the specific store and ask about their requirements before visiting.

What if the check is for a very small amount, like $10?

For very small amounts, some banks might have more relaxed policies, or a retailer might be willing to cash it with your ID. However, it’s still wise to call ahead and confirm their procedures.

Does cashing a check affect my credit score?

No, the act of cashing a check itself does not directly impact your credit score. Your credit score is based on your borrowing and repayment history.

What happens if the check is lost or stolen before I cash it?

If the check is lost or stolen, you should contact the issuer immediately to report it and request a stop payment on the original check and a replacement.

What this page does NOT cover (and where to go next)

• Specific tax implications for custodial accounts: For detailed information on how UTMA/UGMA accounts affect your taxes or your child’s, consult a tax professional.
• Legal requirements for power of attorney: This guide focuses on typical parental guardianship; specific legal documents like power of attorney have their own rules.
• International check cashing: Policies for cashing checks made out to minors can vary significantly outside the U.S.
• Opening investment accounts for minors: While related to saving for a child, this guide does not cover setting up brokerage accounts or 529 plans.
• Legal disputes over child support or divorce settlements involving checks: Complex legal situations require advice from a qualified attorney.