Schools often fall short when it comes to teaching children financial literacy. This duty falls on the parents who are also likely to suffer when the kids make financial mistakes. Underage children do not qualify for checking accounts. However, parents can utilize prepaid debit kids to allow them to spend money online or in-store. The best thing about these debit cards is that they allow the parents to keep an eye on the kids’ spending habits. The main features that a kid’s debit card should have include convenience, spending control, card lock, and expense tracking tools. If you are looking for a debit card for a child, here are the best options in 2020:
Greenlight: This is one of the most popular debit cards with over two million users. The card is controlled through a mobile app that allows guardians to send children money as allowances or bonuses for their use. This app gives the guardian control over the card as they can set limits on the money used during specific periods or at specific stores. The app separates funds that can be used anywhere from those for use in particular places. The card is also economical as the only charge is a monthly $4.99 paid from the parent account. The card does not charge for other transactions including withdrawal and reloading.
Famzoo: This prepaid debit card also comes with a mobile app for the parent to monitor and add additional funds for the child. The app is ideal for financial training as it encourages saving through interest. It also allows the setting of mock stocks to facilitate investment practice. This card also allows real-time requests for when the kid needs cash urgently. The card also fosters financial management skills by splitting the account into three categories for different functions including savings, spending, and giving. The card costs a monthly fee of $5.99 which allows for up to five cards.
GoHenry: This is another family banking tool that aims to foster financial management skills among children between the ages of 6 and 18 years. The card works by setting up a parent account to which children’s cards can be linked. Money can then be sent from the parent account and supports several kids’ accounts. The parent has control of the card through an app and can send money as allowances or bonuses. The parent can also set spending limits and block or unblock the card through the app. The card costs $3.99 per month for each card connected to the account.
BusyKid: This is a prepaid Visa card that allows parents to transfer weekly or monthly allowances to the kid’s cards. The parent can also set allowances based on chores which once completed and approved are transferred to the child’s account. This allows the kid to earn their allowance. This card also has other attractive features including automatic weekly savings, donations to charity, and investment opportunities. This card is also cheaper than the competitors, costing only $19.99 annually although this caters to only one kid’s card.
Akimbo: This card allows the users to set aside prepaid accounts for various purposes including shopping, entertainment, and kids. While the card is not specifically marketed as a kid’s debit card, these features allow it to be used as such. The card however has limitations compared to the other kids’ cards in the market. One of the major advantages of this card is that it does not charge a monthly fee, unlike most competitors. The card also allows automatic reloads set at weekly or monthly intervals into the prepaid account. It also allows instant transfers which are ideal in emergencies. The card however charges for transactions, cash reloads, and ATM withdrawals.
Why consider a debit card for your child?
The biggest advantage of getting a debit card for your child is the financial responsibility it teaches the child. This can assist them to avoid the notorious credit card debt trap that many young people fall into. Further, electronic money expenditure is the future and the sooner one is conversant the better for their financial discipline. A prepaid debit card allows the parent to monitor the child’s expenses and also offer input through rewarding or limiting the card use.