Cashing a money order for a minor is a common scenario parents and guardians deal with. Minors might receive a money order as a birthday gift or for small neighborhood jobs such as babysitting or yard work. With some simple steps and proper identification, a money order made out to a minor can be cashed with ease.
Step 1
Visit your bank. Depending on the age of the minor, a bank account could be opened in his name with you as a sponsor, or the money order can simply be endorsed by the minor and cashed using your account. A custodial or joint checking and savings account is offered by many banks, with little money needed to start and low or no fees. Check with your bank for details.
Step 2
Review the bank's policy in regards to endorsing a minor's money order. The money order must be a valid U.S. money order to cash or deposit. If the minor is unable to sign his name on the money order, most banks will simply request that the minor's name be printed clearly on the back of the money order, followed by the parent's signature directly below. Most banks will also require the relationship between the adult and child be stated in parentheses next to the signature. If the minor is old enough to sign it, have him sign his name on the back. Make sure the child's signature matches exactly the name as listed on the front of the money order.
Step 3
Provide all necessary identification documents upon request. Identification methods for a minor can include a school ID, passport, birth certificate or Social Security card. The adult must have a state ID and must have an existing bank account with the bank; many banks cash a money order against the current account balance, so you should have enough funds in your account to cover the money order amount.
Step 4
Cash the money order at another facility if you run into a problem at the bank. Call the place where the money order was issued and ask where to cash it. Some check cashing business will cash it for you, but will charge a fee, typically a percentage of the amount of the money order, such as 3 percent. A discount store or supermarket can also cash it for you. Money orders that have been purchased at the post office can also be cashed there with proper identification.