At What Age Should Your Child Get A Debit Card?


Teaching financial literacy to teens and children can have a significant impact on their financial future. A 2019 EVERFI Money Matters study found that one of the biggest concerns college students have is not knowing how to manage money. In fact, 53 percent of survey participants indicated that managing money was the university-related challenge they felt least prepared to face.

An effective way to provide a child with financial management experience is to give your child a debit card. Learning to use a debit card responsibly can provide young people with many benefits, from financial independence and confidence to real-life budgeting.

The key, of course, is to find out when to give your child a debit card. Not only do you need to make sure your child is prepared for responsibility, but you also need to check with your bank to find out the rules. Some financial institutions require children to be a certain age before they can get a debit card in their name, while other companies may offer debit cards to children without age restrictions.

That’s where Greenlight can help. Whether you’re looking for one of the best children’s debit cards or you’re hoping to teach financial education to teens, the Greenlight debit card and app have the tools your kids need to learn how to manage money responsibly. Greenlight also allows parents to automatically deposit allowance money or other forms of money directly into their children’s debit account, which means that once their children learn to use Greenlight, they can see exactly how much money they have available to spend.

Financial Benefits of a Debit Card

A debit card can offer a number of financial benefits to users of any age. If you think you can be ready to help your child open a first debit card, here are some of the benefits of debit cards for kids and teens.

  • Comfort. Having a debit card makes it easy to make purchases, both in person and online, without having to carry cash.
  • Security. If your child loses their money or someone steals it, they may never be able to recover it. However, a lost or stolen debit card may be eligible for certain protections under the Electronic Funds Transfer Act (provided you report the issue in a timely manner).
  • Sending money. The best teen debit cards can make it easier to send money or pay grants to your children by wire transfer.
  • Money management skills. Some parents give their children a certain amount of money to use with their debit card each week or month. This structure can help to demonstrate two important lessons: the importance of budgeting and the dangers of overspending.

It is worth noting that credit cards can offer many of the same benefits as above, but most children are too young to open their own credit accounts, and a debit card is a much better way to learn how to pass, touch, do online shopping and managing. account balances. If you want to help your child establish credit before they leave the nest, you may want to consider making your child an authorized user of your credit card, but you want to carefully consider the pros and cons of debit cards versus debit cards. credit before doing so. your decision.

When to Give Your Child a Debit Card

There are many reasons to give your child a debit card, but how old should your children be when you first give them access to debit? If you are waiting for your child to reach the “perfect” age to handle the financial responsibilities associated with debit cards, you may feel frustrated and your children may miss out on learning opportunities. Each parent must weigh a number of different factors when deciding whether or not their child is ready to receive a debit card.

Ages to consider

It is wise to teach children above money at an early age. In fact, your kids may be learning about money through observation without you realizing it. A 2013 Money Advice Service study found that children as young as seven can now understand basic financial concepts.

Of course, the techniques you use to teach your children about money can evolve as they age. A young child who isn’t ready to carry a wallet or keep track of expenses in a smartphone app is probably not ready for a debit card. A high school student, teenager, or college student, on the other hand, might be better prepared for the responsibilities.

Remember that you know your child better than anyone. This makes you the most qualified person to decide on the age you should give your child a debit card.

First job

One of the best times to introduce debt to your children is when they start earning their own money. Whether you’re working on a summer job or providing babysitting services to neighbors, the process of earning and managing your own income can provide your child with the opportunity to learn important money lessons, and add a debit card to the mix. give it to your child. or daughter an opportunity to practice making good choices with the money they earn.

New drivers

If you have teens or young adults who have recently started driving, setting up your kids with one of the best teen debit cards can be helpful in a number of ways. In addition to teaching teens financial responsibility, a debit card can provide access to gas cash or financial resources in the event of an emergency.

When your child asks for money frequently

Another clue that it may be time to set up a debit card for your child is if your child starts asking for money repeatedly. In some cases, a debit card can slow down the constant requests for a few extra dollars here and there; in other cases, a debit card can help children learn how to save money for future purposes instead of spending it on their own as soon as they receive it.

Many parents give their child a certain amount of money each month or week, perhaps as a homework-based allowance to be earned. Once your child begins to receive regular deposits into their debit account, you can tell them what types of expenses they will need to cover on their debit card and help them learn to budget accordingly.

How To Make Sure Your Child Uses A Debit Card Responsibly

Learning to use money is an important skill, but parents who teach financial responsibility to teens, or even younger children, need to develop their own skills. Here are three tips to help you teach your child how to use a debit card responsibly.

  1. Set clear rules. Before giving your child a debit card to use, it is important to set clear expectations. Make sure your child understands what monthly expenses they are expected to pay, when and where they can use their debit card, and what actions they should take if an unexpected or emergency expense occurs.
  2. Take advantage of alerts and other parental controls, if available. Best debit cards for kids include features that can help parents manage their children’s account. For example, you can set up alerts, set spending limits, and review spending reports in your child’s account. Not all banks offer these types of digital tools, which is why fintech services like Greenlight can be just as useful when it comes to teaching financial literacy to teens. If your bank does not have the features you are looking for, you may want to buy and review other debit cards for teens and children to find a better option.
  3. Have frequent cash meetings. Before your child starts using a debit card, it’s important that you help them create a spending plan. The plan should clearly define the expenses for which your child is responsible (snacks, gas, streaming services, etc.) along with the savings goals. Some families incorporate charitable donations into their children’s financial plan. Others use tools like Greenlight to teach their children about investing. Once your child creates a budget, you’ll want to meet with him or her frequently to make sure he or she is on track. If you feel that your child is spending too much on unplanned or variable expenses, open the door to discussions about financial priorities and say no to impulse shopping.

Why Greenlight might be a good choice

The Greenlight debit card for kids and teens is one of the best debit cards on the market, not only because it can help your kids learn financial skills, but also because it includes solid features that benefit the whole family. The prepaid debit card includes an application that can be configured to perform any or all of the following actions:

  • Let your kids make money doing homework
  • Easily transfer money from your bank account to a child’s top-up accounts
  • Helps children set savings goals
  • Teach children to invest
  • Use parental controls such as real-time alerts, balance tracking, and withdrawal limits

The next time your child asks if you can get $ 20, ask how much money is left in your Greenlight debit account. If they don’t have enough reserve, they may have to wait until their next grant deposit, which may make it less fun today, but it can teach your child the kind of financial lesson that will last a lifetime.

The starting point

Debit cards can provide your child with a critical money management experience before they reach adulthood. Before enrolling your child in one of the best children’s debit cards, ask yourself if your child is prepared for financial responsibility and be prepared to make common money mistakes, such as exceeding your budget or spending too much. your bonus on impulse purchases.

Services like Greenlight can give your children the freedom they need to learn from these mistakes, while giving them the ability to monitor and control their debit account as needed. Knowing when to give your child a debit card is a key step in helping them learn important financial skills, so don’t miss out on this important milestone.



Source link

Leave a Comment

Your email address will not be published.