Debit Cards For Kids | Prepaid Debit Cards For Teenagers
Debit Cards For Kids | Debit Cards For Children Under 18
It might be surprising to some people that kids want to have debit cards as soon as they start being able to do their own shopping. But when you think about it, it’s not really that surprising. It’s a well-known fact that kids are early adopters when it comes to technology, so this current generation grew up with the Internet being a part of their life. So naturally they take to online shopping as something completely natural. Of course, if you want to shop online, you need some kind of debit or credit card. Most parents would definitely not hand their kids a credit card, so a debit card makes total sense.
If you look at the kids these days, they are much more independent than what we were at their age. Past a certain age, kids and teens do not like any kind of interference from parents in their lives. Even when it comes to spending money, they would like to spend on things that they want to, without asking their parents for money every time they set out shopping with their friends or need to fill gas in their vehicles. But seriously, can a teen be trusted with money? This is where reloadable debit cards for kids come in handy.
Of course, now it’s important to ask yourself a fundamental question: are prepaid credit cards for children a good idea? Like most things in life, it depends. The parent is going to play a critical role when it comes to how the card is going to be used. When used wisely, prepaid debit cards can be very good tools to educate children about money. This is very important because kids don’t “get” money until they actually have to account for it and make choices on how to spend it.
There are more and more prepaid debit card offers for kids from big banks and credit card companies. This is not a bad idea, because parents can start teaching youngsters about managing their money responsibly. Since we are already paying for ordinary items such as food and grocery using credit cards with cash rebate rewards programs and the use of physical cash is on the decline, it is a good opportunity to let young kids get familiar with reloadable debit cards for teens under 18.
The main advantage of a debit card for kids and teenagers is that unlike a credit card, you can’t end up in debt by using it. All it does is allow you access to your money without having to carry it around. The Visa or MasterCard logo is really there to facilitate payments, meaning that the debit card will be accepted anywhere Visa or MasterCard are accepted. It doesn’t extend a line of credit. Once you’ve used up the balance on the card, all other transactions simply get rejected.
There are plenty of options to choose from for your kids if you want to give them a debit card, and many of them are available at local check cashing centers. Some of the options include:
- Visa BuxxCard
- Hello Kitty Visa Debit Card
- Green Dot Prepaid
- AccountNow Debit Card
- ACE Prepaid Visa
- Upside Visa Prepaid Card
Advantages of prepaid debit cards for teenagers
• The vast majority of these cards are Visa or Mastercard branded, so they can be used pretty much everywhere.
• They are safer than cash. In the even that the card is stolen or lost, all you need to do is call the credit card company to freeze the current card and transfer any balance to a new card.
• Kids can carry out their online shopping without having to ask to use their parent’s credit cards.
• Prepaid debit cards for children are safer than credit cards because spending is limited to the balance of the account linked to the card.
Disadvantages of prepaid debit cards for children
• Fees can really add up. Some cards charge a one-time activation fee to cover the application process, account set-up, and shipping. Depending on the issuing bank, there may also be fees to load money on the card, and/or a monthly access fee to use the card.
• If the card is used to get cash from an ATM, there will be an associated fee. Children need to be aware that this will lower their account balance.
• If the card is loaded from a bank transfer, the money is usually not available for a couple of days.
• Prepaid debit cards do not help build a credit history because no credit is extended to you: you are basically using your own money.
Ideas for Responsible Use:
• Teach your children to use their credit card wisely. For example, teach them the basics of budgeting and saving.
• Show your child how to record transactions in their register so that they can know at all times what their balance is. Also be sure to remind them to include any debit card or ATM fees that might apply.
• Teach your child to always take the sales receipt after making a purchase. This can prove useful in case of fraud on the account.
• Go over the statements with your child to monitor spending habits and check for mistakes.
When your kids get a little older, you can use these sound principles to teach them how to use a credit card and explain the different types of credit cards, like low interest, reward and airline cards. These basic lessons will go a long way to making young people responsible with money for the rest of their lives.