Many parents teach their children how to save by encouraging them to stash a portion of their cash gifts and allowance in jars or piggy banks. This method is generally an excellent way to introduce the concept of saving to toddlers and kindergartners, but as they get older, you will want to instill in them financial habits that will set them up for the real world.
Kids today are growing up in an (almost) cashless society. Instead of jars and piggy banks, why not teach them financial responsibility in a way that’s more in tune with the times? Giving them a debit card for kids at an early age should be a good start.
What are Debit Cards for Kids?
Kids’ debit cards work just like any ordinary debit card, but they are specially designed for children.
Parents typically have two options when getting a debit card for their children – a debit card linked to a bank account or a prepaid debit card that you can preload with money. Kids can use both cards to pay for purchases — in stores or online.
Whether a regular debit card or a prepaid debit card is the right option for your kids depends on their needs, age, and/or sense of financial responsibility. For children under 12 years old who are just learning to develop sound financial habits, prepaid cards like the BusyKid Spend Card would be the ideal starting point. Prepaid cards give parents much more oversight and control over their kid’s spending.
Debit cards attached to a bank account are better reserved for when your little ones become teenagers and ready for more financial independence.
Features to Look for In a Kid’s Debit Card
We’ve already established how having their own debit card is a great way for kids to learn about budgeting and the value of a dollar. The question now is: how do you choose the right debit card or prepaid debit card for kids?
Let’s take a look at essential features to consider when choosing a debit card for your young ones:
The right debit card allows your kids the freedom to make purchases but also assures you that they won’t be spending all their balance in one blow. Most debit cards come with withdrawal and purchasing limits.
If you want more control over your kids’ spending, though, opt for a BusyKid Spend Card. You will be able to control how much of your kids’ allowance goes into their cards and never have to worry about them overspending.
The fees associated with debit card accounts tend to vary, so you’ll want to look for debit cards that charge as few fees as possible.
Don’t forget to check card replacement fees, account-keeping fees, minimum balance fees, and overdraft fees when comparing one card from another.
Easy Access to Funds
Your kids should be able to use their cards almost anywhere they wish to make a purchase.
The BusyKid Spend Card can be used anyplace Visa cards are accepted, whether in-store or online. Transferring money to your children’s debit card is also a breeze with BusyKid’s “auto-allowance” feature.
Any parent would want to know what kind of purchases their children are making. You will want a kid’s debit card that lets you monitor your kid’s spending, whether through online banking or a mobile app.
With the BusyKid Spend Card, parents are notified of their kids’ purchases in real-time and provided with a detailed list of all the transactions made using the card.
Perks and Additional Features
Many providers of debit cards and prepaid debit cards for kids offer deals and incentives to differentiate themselves from their competitors, so make sure to check out and compare these perks before making a decision. You’ll also want to look at the additional features that come with your debit card.
The BusyKid Spend Card comes with a long list of features, including an allowance tracker, chore chart, allowance payout, donate to charity, and stock investment features that can all be accessed through the BusyKid App.
Get Your Little Ones Started
NOW is the best time to begin teaching your kids good financial habits. It doesn’t matter if they’re still three years old or almost a teenager; the important thing is that you START and be there to guide them through the process.
BusyKid is here to help you equip your little ones with a holistic financial education that will serve them for a lifetime.
Download the BusyKid App and take the first step to setting up a BusyKid Spend Card for your kids today!