We should all be taught about financial responsibility at an early age and learn how to handle money before we become adults. But how to make a PayPal under 18?
How to make a PayPal under 18? Unfortunately, PayPal doesn’t allow individuals younger than 18 to make an account, so you should look for alternatives. There are many financial institutions and banks which offer children’s, teenage, and student accounts. You can also open a custodial account for your child and let them have ownership once they turn 18.

Financial responsibility is important. But it isn’t always simple to teach your kids how to handle money when websites such as PayPal don’t allow accounts for individuals under 18. So let’s explore the alternatives.
Table of Contents
How to Make a PayPal Under 18?
A few years back, it was possible to set up an account called PayPal Student, but as of now, that service has been discontinued. You can find information on their website about the requirements for opening an account. It states that all individuals who are interested in setting up an account on PayPal should be residents of the countries and regions listed on the website and 18 or older.
There are other banks and financial organizations which offer a way around this restriction by binding teen accounts to custodial ones. However, PayPal has decided to offer nothing similar, so there is no PayPal Student available anymore.
Why Doesn’t PayPal Allow Minors to Set up an Account?
The stated reason behind the decision to not allow minors to set up an account is the fact that in the United States, no individual under 18 is permitted to enter a legal contract. And because opening an account on this website means you agree to a binding legal agreement known as a contract, the individual must meet the legal requirements. One of them is the legal age for contracts, which is the age of majority – and it’s 18 years in most states and jurisdictions.

How to Enable Online Banking for Kids
Setting up an account for kids is the best opportunity for teaching them about the world of finance and personal budgeting. These are not the things we are taught in school, so having your parents teach you a thing or two and preparing you for the life ahead is essential. It’s easier to do so if you set up an account for your kids so they can control their savings and learn how to reach financial goals.
Learning about maximizing savings and dealing with money is easier for your kids with an account of their own. But since PayPal doesn’t allow minors to set up an account on their website, you should look at available alternatives and pick the best possible option.
Money Teen Checking Account by Capital One
If you are interested in opening an account for your kids and teens that has no fees included, Capital One is your best choice. They offer a specialized account for children ages eight to eighteen, which doesn’t require a minimum balance and includes free mobile and online banking. If you choose to set up an account, here’s what you can expect:
- There are no monthly fees included,
- They will send out a free MasterCard debit card,
- There is a joint account available for kids and parents (you both receive mobile app login credentials),
- Parental controls are included so parents can keep an eye on their kids’ spending,
- You can deposit checks through the mobile app,
- With the debit card, your kids will be able to access over 70,000 ATMs all over the US,
- There is an earned interest on the account, 0.10% annual percentage yield.
Parental controls on the account allow you to always intervene and help your kid. You can also use your own bank account to transfer money into and out of his account.
Other Options for Teens
Capital One Money Teen Checking account is an excellent way to bring your kids into the world of personal finance. However, it isn’t the only option available because a few other financial institutions have stepped into the market with similar offers for teenagers.
Wells Fargo Clear Access Banking
If your teen is between the ages of 13 and 16, you can create a checking account in their name with Wells Fargo Clear Access Banking. The minimum deposit for this option is $25, and the monthly cost is $5. Account holders can pay their bills online, make mobile deposits, and withdraw cash from more than 13,000 fee-free ATMs countrywide. Additionally, your teen will receive a debit card with no liability insurance.
Alliant Kids Savings Account
If you want to start a joint account for your child if they are between the ages of 13 and 17, you can check Alliant Kids Savings account options. It’s an account for teens with no minimum balance requirements, no monthly fees, online/mobile banking, and interest rates that are more than twice as high as those of comparable teen bank accounts.

Check These Prepaid Debit Cards for Teenagers
One of the greatest PayPal alternatives for children is a prepaid debit card. You won’t have to deal with the inconvenience of opening a bank account, and your kid will have access to a certain amount of money for little purchases or emergencies. One of the various methods to give money as a present is to stop by any pharmacy or grocery store and get a rechargeable prepaid card for your kid to use. The table below lists your options when it comes to prepaid cards.
Prepaid card | Features available |
American Express – Bluebird | A family account allows up to four cards and allows you to set spending limits. |
MyVanilla Card | Found at Walmart or other stores. Parents can add a minor as a registered user. |
FamZoo Family Accounts | You get prepaid cards for each child and can have money transferred automatically. |
Minors Can’t Set up a PayPal Account, but There Are Alternatives
As you find out that you won’t be able to set up an account with PayPal, you shouldn’t give up on finding ways to teach your kids how to handle money. Many financial institutions offer alternative ways to either set up an account that your kids can use or supply them with prepaid debit cards. Learning how to handle funds is a great way to teach them how to make and save money down the road.