Children can be taught financial responsibility at an early age. They first learn how to save up by stashing their cash and coins in a jar or piggy bank. Later on, they would learn how to save up using a savings deposit account with the help of their parents. As these kids turn into teenagers, they will be tempted to spend more, may that be on a movie with friends or on a field trip. Having these expenses may give you an idea to get a debit card for your kids.
There are a lot of options to choose from. They include prepaid debit cards or traditional checking accounts with debit cards. These accounts can be a joint account between the parents and the child. The children can have control over their own money by having a debit card. Parents can also monitor how they are using it.
Debit card for kids can be from your own credit union or bank. Ask if they have any options for joint accounts with your child. Some banks and credit unions won’t allow minors to have debit cards under their name. It’s best to look for options with joint accounts.
Parents should look for debit cards with low or no fees for maintaining and funding the account. They can monitor it online, set spending limits, and have convenient access through ATMs.
Why Get a Debit Card for your kid?
This will teach them financial responsibility.
Teaching children financial literacy at an early age will help with financial planning as they grow older. Parents need to teach their children how to differentiate their needs and wants as early as possible. When the children put cash inside their piggy banks, emphasize the 10-10-80 rule. Ten percent of the money should be for charity, 10% for savings and the 80% is for what they want or need.
At first, children will be curious as you let them see you swipe your debit card. Let them give it a try the next time. Explain to them the process of how debit cards work and tell them that the password should be kept secret.
The kids will be able to travel abroad without exchanging money
Nowadays, there are so many opportunities for children to travel. Whether it’s a field trip or an international conference with their classmates, children may travel abroad. Before credit and debit cards were the norm, parents used to send their kids abroad with traveler’s checks or cash.
By having debit cards, you won’t have to worry about your child being robbed as they travel abroad. They can use their cards to buy what they need.
You can set the spending limit on your child’s debit card
You can put in a certain amount of money in your child’s debit card for his monthly allowance. This will teach your teenager to value his money and be responsible on how to use it. This will discipline them not to go overboard with spending and will teach them how to budget.
Kids will learn how to use financial tools wisely
Debit cards spend money that you already have in your bank account. When you get one for your child, you can teach them how to keep track of all their expenditures. Show them how to see how much money is in their account and how to manage it.
Teaching your teenager how to use his debit card wisely will lead to him being a financially literate adult.
When should you get a debit card for your kid?
Kids will have their own pace of being financially responsible. Some kids will be ready by middle school, others won’t be ready until they’re in high school. It’s better to let them experience making mistakes on their own so that they will learn from it. Of course, as parents, you will be there to guide them. It’s important that the parents give time to monitor them as they use their debit cards.
Remind yourself that your goal is to teach your kids about being responsible with their spending habits. Also to let them manage their own finances. A big part of this is handling a debit card. Make sure that you give your best to help them out as they learn how to use it.
If you are looking to get debit card for your kids, check out some offers of Calcite Credit Union today.