Give Your Child a Debit Card and Help Secure Their Finances From a Young Age
By Space Coast Daily // August 3, 2022
Parents may emphasize the advantages and drawbacks of managing their own money before children invariably pressure them to provide them with a card. Thus, parents may teach their children finance fundamentals with a safer option.
A teenagers’ Debit Card is a great option to begin your childs journey to financial freedom. Using a debit card can be a fantastic method for youngsters to learn how to manage finances while they are still under the supervision of their parents.
Some benefits of giving a debit card to a child are listed below:
1. They will get more experience in handling a Digital Bank Account
Kids can understand how much they’ve spent with each swipe of their debit card. Children can also see how quickly they run out of cash when spending on trivial expenses. Digital Bank accounts help teenagers keep track of their expenses and are helping parents encourage their children to make wiser financial decisions.
2. More practice will lead to perfection
There is no better time for kids to make financial mistakes than when their parents directly monitor their spending. With a teenagers’ Debit cards, it’s easy to monitor their child’s purchases from any location and later discuss and reroute their spending. Moreover, it will also be a great lesson if the children attempt to surpass the spending limit set by their parents.
3. Safe spending
There are numerous dangers of carrying cash. You won’t be able to recover the stolen money if your teen’s wallet is lost or stolen. Debit cards are safer since they include spending caps that you can manage and a security code to protect your child’s money. Stolen/lost cards can also be deactivated instantly through the app they are associated with.
4. Convenience of being cashless
No more dispersing cash, no more looking for change, no more stressing over having enough for impromptu occasions. No matter where you are, you can instantly send money via a digital app into your debit card account. Additionally, it enables individuals to use the card and withdraw cash from an ATM needed.
5. Good credit score
Although using a debit card won’t improve their credit score, educating children on how to safely begin transacting is the first step towards later developing a high credit score. Kids who can effectively manage their debit card spending can subsequently develop credit card behaviors that will help them build a high credit score.
How to pick the best debit card for a child?
Consider the following elements of typical kids’ debit cards before choosing the ideal one for your family:
■ Many cards are specifically made for children and have real-time parental controls, such as notifications and spending limits for particular stores.
■ Read the fine print to learn about reload costs, minimum account balances, additional fees for calling customer support lines, and other details. Find a card and account with modest remuneration, whether you pay them personally or have your youngster do so. Your bank might provide a fee-free debit card with your account as part of a family portfolio.
■ Some online banking services for kids have a list of duties you can mark off and pay them to ensure they can see their effort and money expenditure.
A teenager’s Debit Card provides a concrete means to link the cost of money, expenditure, and the goods or services obtained. You can use cash to achieve the same goal, but debit cards and electronic payments are increasingly taking the lead as more popular payment options. There is a direct connection between the worth of money, expenditure, and the goods or services received with a Digital Bank Account and a debit card. Moreover, debit cards can also prevent a child from spending unnecessarily.
