Credit Union Youth Month: When Is The Right Age To Give A Kid A Debit Card?
03/29/2023
Though using debit cards feels like second nature to us as adults, there was once a day when you got your first debit card. As a parent, you have to decide when is the right age to give your own child or children a debit card.
There are lots of ways to teach kids about money, but it can be hard to decide how much financial freedom to give your kids and when. Here’s what to consider when deciding when is the right age to give your kid a debit card.
WHY DEBIT CARDS BENEFIT KIDS
Giving your child a debit card is a great way to improve financial literacy. When your kids can track their spending, it’ll help them manage their money and get prepared for adulthood.
As you teach your kid about money, they’ll likely make some financial mistakes, but opportunities to learn from mistakes at an early age allow them to avoid bigger mistakes in adulthood.
Debit cards also show kids the immediacy of spending money. Unlike a credit card, once a transaction happens, the money is gone from the account and they can’t spend more than they have. They’ll learn how quickly spending money on lots of small things or a few big things can add up. Once your kid gets older, they can begin building credit since they’ll already have a good foundation of financial knowledge.
WHAT AGE IS RIGHT TO GIVE A KID A DEBIT CARD
Giving your child a debit card can help them get ahead as long as you remain hands-on. When you decide to give your kid a debit card, it’s important to help them track their spending and saving and to teach them how to manage their checking and savings accounts. Discuss what they’re going to do with the money they get on birthdays, holidays, and from allowance. Teach them skills like how to deposit checks using mobile banking and bring them to your credit union with you so they can become familiar with what handling money looks like.
As your kid becomes familiar with spending and saving, having a debit card will feel more natural to them — not something unfamiliar and confusing. Having a debit card can make your child’s life easier, especially when it comes to the teenage years when they’re hanging out with friends and filling their car with gas.
Some people suggest giving your child a debit card at age 12 or older, but ultimately, giving your child a debit card is a personal decision. Consider how much money your child has to manage and their maturity level.
HOW TO GET A DEBIT CARD FOR YOUR KID
At INOVA Federal, we want to make sure that your children’s financial goals are always within reach. That’s why when you open a savings account for your child who is 17 years old or younger, we’ll deposit $25 into your child’s account and your account.
When you open a savings account for your child, they’ll have access to benefits like earning competitive dividends when they have $100 or more in their account, having no monthly service charge, and having free digital banking.
To get your children on a successful financial path, open a new savings account for them online or by coming into one of our convenient locations.