Identifying the Best Debit Cards for kids
Professor Dennis Shirshikov of City University of New York’s Department of Finance, Economics, and Accounting says parents should keep a few things in mind when shopping Best Debit Cards for Kids. Some examples are:
Limits on spending and transaction notifications are examples of parental controls.
Low or nonexistent monthly costs
Efficacy, which may involve developing apps or websites that are easy to use.
Strong safety measures to safeguard your funds in the event of a bank failure, including the use of a personal PIN and the availability of FDIC insurance.
Specific age ranges to suit your requirements.
Educational resources and parental supervision, according to Shirshikov, are the most significant. These features serve to both limit the child’s spending and teach them valuable lessons. A card that tracks your spending and helps you save might be a great tool for teaching your kids about money management.
According to Farrington, other important aspects that parents should consider include controlling the card’s use and setting spending limitations. Debit card apps should have intuitive interfaces that parents and children can use, and they should also have educational resources available within the app.
“These features enable parents to monitor their children’s financial well-being while also giving them great educational opportunities,”.
Our process for selecting top-rated Best Debit Cards for Kids
We used the following criteria to narrow down our selections of the top Best Debit Cards for Kids:
- In researching this piece, we spoke with two financial experts. Robert Farrington is the brains behind TheCollegeInvestor.com and a graduate of UC San Diego with an MBA in entrepreneurship. Advice for Millennials on managing student loan debt and building money for families based on Farrington’s personal experience in corporate investing. Professor Dennis Shirshikov of City University of New York’s Department of Economics, Finance, and Accounting was another expert we spoke with.
- Experts agree that parental restrictions are crucial for Best Debit Cards for Kids, and all of the suggested solutions have these. With any of the cards we suggest, you may see your child’s whole spending history. The ability to establish spending limitations is also available on almost all of the cards.
Kids’ top-rated bank accounts
Greenlight
Features:
- Age criteria: There are no specified age limits.
- Plan prices range from $4.99/month for five children to $14.98/month for a family plan with extra features, including investment tools.
Pros:
- Accepted at no cost at any ATM
- The more costly plans provide a 1% rebate on all purchases.
- Assigning chores, setting weekly spending limits, and topping off a debit card with a child’s allowance are all examples of parental controls.
- A Greenlight savings account is available with all plans, and your child can earn a rate of return on their money ranging from one percent to five percent.
Cons:
- Charges more than competing debit cards for certain programs
- Plans with higher fees are the only ones that allow investing.
The reasons why it’s so beloved
Kids can choose from a variety of excellent debit cards, and some banks even offer them to their customers. However, according to Farrington, the Greenlight debit card is the best option if you want a more sturdy card. According to him, the Greenlight debit card is unique because of its emphasis on financial literacy within the app, its fee-free fast transfers, and its robust parental restrictions.
For valid reasons, the Greenlight debit card is among the industry’s most prominent products. Its shared app alerts parents about their child’s purchases and makes it easy to see their transaction history; it also offers strong parental restrictions, which parents love. The ability to set up chores in the app and then pay the youngster for them when they’re done is another perk for parents.
First Banking by Chase
Features:
- Required age range: 6–17
- No ongoing costs:
Pros:
- You may set limits on your child’s spending, such as how much they can spend or where they can buy things, and you can get notifications when they purchase something.
- Accepted at no cost at any Chase ATM.
Cons:
- To utilize it, you must already have a Chase account.
- Lack of ability to invest
The reasons why it’s so beloved
Farrington also highly recommends the Chase First Banking card for Best Debit Cards for Kids. The major reasons he recommends the card are its lack of monthly fees and its easy integration with a mobile banking experience. The Chase card appeals to parents since it is linked to a reputable bank. They appreciate the flexibility to establish spending limits and monitor usage, and they prefer robust parental controls.
Go Henry
Features:
- Requirements: children aged six and above
- Prices start at $4.99 per month for one kid and go up to $9.98 for four people in a family plan.
Pros:
- One kind of parental control is setting weekly or even per-item spending limits.
- Permits parents to set spending limits, especially on certain kinds of businesses; for instance, you might forbid your child from using the card at stores that sell cigarettes and alcohol.
Cons:
- Expensive recurring costs
- Zero opportunities for investment, savings, or cash return
The reasons why it’s so beloved
Blogger and Mamas Dinero financial educator Alicia Sanchez describes Go Henry as a debit card that doubles as a teaching tool. Starting as early as six years old, it’s a great method to introduce fundamental ideas about money and spending decisions to young children. A great “basic” debit card would be Go Henry.
Sanchez is also smitten by Go Henry’s security measures. The Company offers top-notch security that is password-protected, and Sanchez adds that there are extra deposits for reminders.
The best way to help your child learn to use a debit card
It would help if you familiarized yourself with the card’s features and any associated internet resources before you give your child their debit card. Farrington also suggests making a list of ground rules for the household. He explains that parents should advise their children on proper usage, establish spending restrictions to help with budgeting, introduce their children to basic financial ideas like earning and saving, and include them in making decisions about their money.
Encouraging your child to think about the impact of their spending choices is another crucial part of introducing the card. At first, your kid may be giddy with excitement at the independence a debit card provides. However, this is a chance for your child to see that money can’t buy everything.
“Get them involved in keeping track of their money and make them think about the decisions they’ve made,” . For instance, you may teach them to distinguish between necessities and wants and how to set financial priorities. Instead of seeing it as a tool for spending, this method transforms the debit card into a tool for learning.
To summarize
Choosing a Best Debit Cards for Kids could seem like a huge task. Still, it really isn’t. Fortunately, a plethora of debit cards are available, each boasting minimal costs, easy navigation, and first-rate parental controls.
Teaching children the value of prudent financial management is one thing, but letting them see it played out in their own lives is entirely another. Debit cards allow children to practice spending, saving, and managing their own money in a safe environment while being closely supervised by their parents.
Also Read: Embrace the Journey: Understanding ‘Life is a Journey’
