Many parents have sat down with their children to discuss good and bad spending habits. So naturally, you want your child to learn good money habits, so you begin by teaching them how to manage their finances.
One way to teach kids how to be responsible with money is with kids’ debit cards. Youngsters today are expected to grow up faster and learn how to handle money earlier than past generations. That’s why parents must take responsibility for teaching their kids how to manage cash and debit cards properly.
By allowing your child access to a debit card, you’re providing the tools they need to learn good money management habits while they’re young. So, if you’re looking to help your child get their first debit card and want to ensure they have the best chance of using it responsibly, we’ll cover the top seven kids’ debit cards.
5 Things Parents Should Know Before Getting Their Kids’ Debit Cards
One of the first steps to teaching your child about money and how to use a debit card is introducing them to the concept of saving, sharing, and spending their own money. You can do this in several ways, such as giving them an allowance or making sure they complete chores each week.
In addition, this is also an excellent time to start teaching financial literacy skills like budgeting, which will help them understand how much they earn and what they can do with it. The first step to getting kids debit cards is introducing them to the concept of money. You may have already taught them how much things cost, but it’s time to go further than that — explain why some things are more expensive, what happens when you buy something and more.
Next, explain what a debit card is and how it works. You can even show your kids the piece of plastic in your wallet and explain that this is an example of a debit card. Eventually, you can go into more detail about why having one is essential. In essence, kids are keener to learn if you give them real-life examples in practice.
Finally, you’ll want to explain the difference between debit and credit cards. Explaining credit cards can be more complicated, but if you have a credit card already (and most people do), show it to your child and explain that it is different than a debit card. You can also talk about why it’s essential not to use these as often as debit cards: They can lead to debt!
#1. Why Should You Get a Kids Debit Card?
There are many reasons why a prepaid kids’ debit card is a good idea, but the most obvious one is that it teaches your child how to manage money. Money management skills are fundamental if you want them to spend responsibly when they’re older and have their accounts.
A debit card for kids is designed to help them learn the money basics, such as saving, spending, and sharing. Additionally, when you look at it, they can spend only the amount on the card, which means it can teach them to budget their money carefully.
Additionally, kids’ debit cards can be an excellent way for parents to control their spending. If your child wants something that’s not in their budget, they need to ask you for permission before using their card. Parental controls allow you to teach them about saving and spending responsibly.
A kids’ debit card also provides a safe way for your child to make online purchases and shop without worrying about getting into trouble. You can set the spending limit on their card so they can only spend what you feel is appropriate for their age.
#2. Why is it Important to Teach Your Child About Money Early On In Their Life?
If you want your child to be financially successful later in life, you must teach them about money as soon as they’re old enough to understand. Giving them their money to spend helps them learn how to manage their finances and teaches them how to make good spending decisions.
When children are young, it’s essential to teach them about money and how it works. Understanding money will help them understand how to manage their finances when they get older. A debit card can be an excellent tool for teaching your child about spending responsibly because they have to ask permission before using it. They’ll learn that money doesn’t grow on trees and that every purchase comes with an associated cost.
#3. How Do You Choose the Best Kids’ Debit Card?
When choosing a kids’ debit card, you’ll want to make sure that it offers the following features:
- A low monthly fee. Most kids’ debit cards charge around $7 per month, so look for one with a lower price if possible.
- The mobile app allows you to monitor spending and make deposits. Make sure the app can add money to the account using direct deposit or another method (such as a check or credit card).
- Strong parental controls. If you’re going to give your child access to their bank account, you’ll need solid parental controls so that they can only spend money on things that are age appropriate.
- ATM access. Ensure the kids’ debit card has an ATM network that offers cash withdrawals.
- Easy-to-use online account management tools. You’ll want a card that has easy-to-use online account management tools so that you can monitor what your child is spending their money on and how much they have left in their account at any given time.
- Look for a card that can send your extra child rewards. You can set up a debit card that sends your child a certain amount of money every month. A different rewards system will help them learn how to appreciate hard work, manage their money, and track their spending.
#4. At What Age Can a Child Have a Debit Card?
The answer to the question of when you should give a child a debit card is simple: as soon as they are old enough to understand how money works. Youngsters can get a prepaid debit card for kids under 13 with parental control. However, there are different providers on the market, and while they offer the same service in many aspects, there are slight differences between them.
You may believe your child is mature enough to handle a debit card independently. However, you mustn’t give them too much freedom with their money. It’s a good idea to teach your child how to manage their money and what it can buy them at an early age. Basics will help them understand how to handle their finances and prepare them for using a debit card similarly.
#5. Are Kids’ Debit Cards Safe?
Yes, they are. Kids’ debit cards are just like any other type of debit card and can be used to buy things online or in stores. They have the same level of security as any other debit card for adults. However, unlike regular bank cards, prepaid debit cards for kids have a spending limit.
Prepaid debit cards are designed so parents can load the card with a certain amount of funds and use the app to oversee their child’s spending. Monitoring their patterns is an excellent moment to utilize as a tool for teaching them the value of hard-earned money.
Each app is meant to be used in conjunction with a debit card. So, for example, set chores or goals for your child to meet and earn that allowance. In addition, there is a limit to releasing the funds. Parents usually set those limits through the dashboard, so you should always check the terms and conditions before purchasing one.
With proper parental control, kids’ prepaid debit cards are safe. However, it would help if you were careful how you use them. For instance, you should only give them small amounts of money at first and have them spend it on something tangible such as food or clothes to get an idea of what their money can do for them.
Good News: There Are 7 Best Kids Debit Cards that You Should Know About
The best debit cards for kids can help teach them the value of money and how to budget and spend wisely. There are several prepaid debit cards for kids available on the market today. Here are seven good options:
BusyKid is a new generation of kids’ debit cards that teach youngsters financial responsibility in a fun & interactive way!
BusyKid is a great way to give your kids the gift of financial responsibility while they learn in a fun and interactive way how to manage and control their spending patterns. It’s easy, mobile, precise, and convenient.
With the BusyKid app, you get real-time notifications for parents and an enjoyable way for children to earn their allowance. Parents can set chores and goals that make their kids’ allowance. The BusyKid debit card helps kids manage their money via allowance and chores to give them a real-life feel of handling personal finance!
It is impossible to watch kids 24/7, even though we wish we could. BusyKid helps you learn about your kids’ purchases and where they spend their money. As a parent, you get real-time notifications each time they purchase anything through their prepaid, reloadable kids’ debit card that allows parents to teach their children financial responsibility with the help of unique features.
You can pre-load your child’s allowance or award additional funds whenever they complete chores or reach a goal (all on an interactive app). You can add up to five to one account and teach them to save their money in a digital, convenient, and fun way. Grandparents often wish to contribute to their grandchildren’s savings. They can do so by using the BusyPay feature exclusive only to BusyKid.
Many parents are keen on teaching their kids to invest. BusyKid offers access to a child-friendly stock market through which they can learn what it means to own a company fragment.
BusyKid also teaches children the importance of giving back. Crafts an excellent work ethic and teaches responsibility. Kids can access many worthy charities to choose from, including an organization that helps animals or people in need.
BusyKid Advantages
- No minimum age requirement
- Age-appropriate educational tools for kids
- Encourages kids to save money
- Personalized debit card
- Parents can pay a weekly allowance with or without completed duties
- Setting the percentage of a child’s weekly budget that goes into savings
- Instant transfers
- Debit Card spending in most places where Visa is allowed
- Thousands of ATMs available
- 30-day money-back guarantee
- Affordable at $4 per month (billed annually)
BusyKid Cons
- Parents have a limit on transferring funds to a child’s account.
The Greenlight debit card helps parents teach their children about money management.
The Greenlight debit card enables your child or teen to learn about money management and financial literacy in a digital environment. In addition, the Greenlight app allows kids to access videos, quizzes, and other educational content.
You can transfer funds for your child’s allowance and set goals or chores that need to be completed. Greenlight lets you set flexible controls and real-time notifications of your kids’ money activity. In addition, Greenlight enables parents to allocate allowances to specific stores and pay interest on savings to demonstrate compound interest.
However, Greenlight has three different pricing plans with additional features. For example, Greenlight Max creates a linked brokerage account for children, allowing them to purchase and sell actual stocks on the stock market.
Greenlight Advantages:
- No minimum age requirement
- Age-appropriate educational tools for kids
- Brokerage account
- Higher transfer limit
- Personalized debit card
Greenlight Cons:
- Higher fees are $4.99 to $9.98
- It can be challenging to close the account
- Plans that offer investing cost more
GoHenry is a debit card for children combining savings, spending, and payment apps into one.
GoHenry is a debit card geared toward kids and putting them in control of their finances. This card can help teach kids essential money skills such as budgeting and saving money!
GoHenry has a kids’ prepaid debit card and app so they can learn by doing—and Money Missions to accelerate learning. Money missions are engaging lessons tailored according to the child’s age group. It even has features for parents, too—quickly manage pocket money, change parental controls, and much more.
Parents can guide their progress with real-time updates and customizable controls. One disadvantage is that the GoHenry debit card lacks an ATM network, which means you will be charged a fee for using one.
GoHenry Advantages
- Personalized kids’ debit card
- Educational tools
- Customizable chores
- Earn, save, spend, and give choices
GoHenry Cons
- No ATM network
- Fees per withdrawal
- Expensive monthly subscription is $4 per child
FamZoo is a prepaid debit card that lets families set financial goals together.
FamZoo is a prepaid debit card that helps families manage their money by setting financial goals together. Parents get peace of mind knowing their kids are learning about compound interest and incentives for saving and spending responsibly — all while enjoying the convenience of using the app and debit card.
FamZoo has several unique features that distinguish it from other family finance management applications. Among these are compound-paid interest, child loan tracking, reimbursement requests, and billable items to individual members of the family. In addition, parents manage their kids’ funds in prepaid card accounts or IOU accounts; the latter are often used as family loans.
FamZoo Advantages
- Parents choose to pay interest
- 60-day free trial
- FamZoo has no minimum age requirement
- Prepaid card accounts or IOU accounts
FamZoo Cons
- Cost per month $5.99
- Kids can change the chore list
- Parents are the account holders for kids under 13
The Step is a banking platform that allows teens to build credit and savings with their parents’ help.
The Step is a new banking platform that allows teens to build credit and savings with their parents’ help. Parents can manage their children’s accounts, instantly send money, and ensure their child has access to the financial tools they need to learn about personal finance.
For example, you can set up an allowance, direct deposit for a paycheck, or even give your child a Step card! The operator made it so teens can feel confident using the same technology as adults but safely and securely. Unlike a debit card, the Step card treats all transactions as credit, allowing your teen to develop credit.
Step Advantages
- No Monthly fees
- Builds a child’s credit
- Good parental control
- No minimum age requirement
Step Cons
- Limited customer service
- No ATM
- Aimed toward teenagers
The Current kids’ debit card allows parents to restrict their children’s spending.
With Current, kids can have their debit cards which restrict spending and gives teens the financial freedom they crave with the security and visibility parents want. As a result, they’ll learn to spend, save, and manage money better.
Current is a kid debit card that lets parents prevent overspending. Kids learn to manage money better and start saving early with round-ups and Savings Pods. They can use their Current Visa debit cards anywhere Visa is accepted, online, or at millions of Visa-accepting physical locations. Deposits are made directly into our Current Account, which can be used for purchases whenever your child wants.
Current Advantages
- No minimum balance requirement
- Highly rated mobile app
Current Cons
- A specified photo ID is a must
- $4.99 monthly fee to access benefits
- Deposits have fees
Rooster Money Apps are designed to teach children the importance of saving and spending responsibly.
Getting kids to save money can be challenging, but it gets easier when you take the fuss out of it. RoosterMoney allows parents to manage all pocket money in one place, helping them make decisions when out and about and empowering the kids to engage with their money.
Rooster Money Apps are easy-to-use and are designed for kids to build good money habits for the future. The app takes you through some simple lessons to help teach your child the value of saving, spending responsibly, and making informed financial decisions.
Rooster Advantages
- Educational content
- The annual fee is one of the lower prices
- No age restriction
Rooster Cons
- The fee to access prepaid kids’ debit card
- Card loading limited
- No FSCS protection
Father of Two Encourages Kids to Budget With a Kids Debit Card
If your kid has a smartphone, they’ve probably been begging for one of those kids’ debit cards. These are real debit cards that you can use anywhere Visa is accepted. They allow kids to make purchases online or in person, yet they don’t come with spending limits or fees like credit cards. Instead, parents can use the app to set spending limits for their children. They can also set up a savings account so kids can save money they earn within the app.
Learning how to budget and manage money is an essential skill that kids can learn at a young age. These kids’ debit cards allow your child access to their own money to decide how they want to spend it. While this may not seem like a big deal now, these skills will come in handy when your child is older and has more responsibilities.
A father of two girls used the BusyKid app to make his kids do the chores and earn an allowance. “Just the sense of independence and being able to do their laundry, folding clothes, put them up. it was amazing the first week we did it.” In the end, it developed into something he did not expect.
His children started asking him about investing. While he explained the concept, they had a plan to purchase partial Disney stocks through the app. “You know, obviously they love being able to spend the money they’re getting and the idea that they own just a small piece of Disney.”
As long as you plan for how much money is in their account. It can be an excellent way for your child to learn about saving and spending responsibly. In addition, you can set up monthly allowances that automatically deposit into their debit card accounts, which will help teach them the value of hard work and earning money.
In addition, being able to make wise financial decisions will help them avoid problems like overspending or taking out loans without thinking through all the consequences. Learning how much money they need each month will also help them plan for things like college tuition or buying a house one day down the road.
Conclusion Choosing the Best Kids Debit Card
You can see many things to consider when choosing a kids’ debit card. However, the most important thing to remember is that it’s never too early to teach your children about money. Whether you have small children or teenagers ready for their first credit card, having a good relationship with money can help them make sound financial decisions later in life.
* BusyKid Debit Card is issued by MVB Bank, Inc, Member FDIC, pursuant to a license from Visa®️ USA Inc. Cliq® is registered ISO/MSP of MVB Bank, Inc. All cardholders funds are insured by the FDIC in accordance with the FDIC’s applicable terms and conditions. For more information about your card terms and conditions including the VISA Zero Liability policy go here. Cliq®️️ is registered ISO/MSP of MVB Bank, Inc.
