There is no right time for teaching money management to your kids. The teachings about money management that you give to your children today will help them to save and spend their hard-earned money in the right way in the future.
Handing your kids with a SpendSafe Debit Card for Kids can be one of the most realistic ways for them to learn about the value of money. It can also help you to keep tabs on the spending habits of your kids to make sure that they are making the right choices.
However, before doing so, you need to know about the minimum age of your kids when they can start using the debit card. Check out the following section of this article to learn all the necessary details about the debit cards for kids.
Why should you give a debit card to your children?
Offering a debit card to your children is not a way to spoil them. Instead, it is a simple method of teaching your children about the value of money and helps them develop good financial habits.
With the help of the debit card, your children can learn about tracking their expenses with the help of online tools, banking apps, and text alerts. The debit card can also help them to plan their monthly spending using all their earnings and allowances.
The availability of money and the freedom of spending can help them to find out the difference between the needs and the wants.
There is no doubt that all these above teachings can be done using hard cash as well. But, the digital payment system is going to be our future, and it is necessary for the children to learn about the pros and cons of this system as early as possible. A Spendsafe Debit Card for Kids helps them to understand the safe practices of using it.
The Available Options
There are two types of debit cards that you can offer to your kids. The number one is creating a checking account for them to give them a prepaid debit card. Some of the financial institutions and banks offer to check the account for the children and teenagers.
These accounts can be jointly owned by the parents or legal guardians or owned by the child alone. Some of the financial institutes, however, require the parent to become the custodians of the bank account even though a child is the account holder.
However, the accounts of kids under the age of 12 years mostly offer ATM cards. The accounts for the teenagers, however, provide debit cards enabling them to make purchases from the stores.
For the kids, prepaid debit cards work just like the standard debit cards. It helps them to make purchases from the stores whenever it is necessary. The only difference is that these cards are not linked with any bank accounts. The parents can add money to the card when required. If the balance of the card becomes zero, the child would not be able to make any transactions.
Pros and cons of offering a debit card to a child
Giving a debit card to a child comes with its own set of advantages and disadvantages. A Spendsafe Debit Card for Kids helps the child to manage the money, learn the differences between the needs and wants and creates a mindful attitude towards spending money.
It also gives the child the freedom to spend at their wishes. That means these cards help the children to learn from the spending mistakes.
However, using a debit card can be problematic for the children if the parents are not using any card management guidance to them when it is necessary. If you have decided to hand your kids a debit card, make sure to check their spending habits. Otherwise, they can easily overdraft the account, and you might have to pay the hefty fees.
You can, however, use the prepaid card to avoid such problems. This type of card allows the kids to spend the money that is available on the card only. Still, you must limit the spending habits of your kids and keep strict tabs on the card balance.
Giving a Spendsafe Debit Card for Kids to your children is a personal decision of the parents. It would help if you made the decision depending on the maturity level of your kids and your judgment. However, 12 years is a good age for the children to understand the value of money and make better decisions related to money management as well.