So as a parent, early financial literacy training is what we are keen to inculcate in our children. And one very good way to do this is to make them have a debit card. But with all of the great options out there, choosing the right one for your child can be an extremely tough call. This article is going to delve into the very best debit cards for kids and what to like about them. It should also be a resourceful guide in making a buying decision for these products.
Why Your Child Needs a Debit Card
A debit card is going to be a very great tool to teach your kids about the rudiments of personal finance, from ensuring that they know how to use money efficiently to tracking money and the act of budgeting. Beyond that, it gives them a sense of responsibility and autonomy—while giving you the ability to watch over and manage their monetary interactions.
Top features in a kids’ debit card:
Considering that, here are features to look out for in a debit card for your child, which will guarantee safety and be educative:
Parental Controls: Some of the features include spending limits, transaction approval, and real-time notifications on the card.
Educational Tools: Some of the debit cards come with in-built financial literacy tools containing quizzes, lessons, and interactive games that educate the kids on managing money.
Fee Structure: Be aware of the type of fees that come along with the card, like monthly maintenance fees, ATM withdrawal fees, as well as foreign transaction fees. Prefer a card which has a transparent and minimal structure of fees.
Security Features: The card should have strong security features including EMV chip technology, the option to lock or unlock the card, and protection of transactions done without permission.
The Best Debit Cards for Kids
Greenlight Debit Card
The Greenlight Debit Card has been very well received and was recently included in the list of the best debit cards for kids, given that it offers features to prove itself as an excellent pick for parents to introduce their children to money management.
Key Features
- Parental controls that allow Spend management and monitoring
- The card has a savings feature, in which kids can be able to set their saving goals to earn parent-paid interest.
- Greenlight Financial Literacy tools, including in-app tutorials and quizzes.
- Entirely customizable spending category limits.
Pro:
- Highly effective parental controls.
- Financial literacy education tools.
- Allows direct deposit for children’s allowance.
Con:
- $4.99 monthly for one parent account; allows up to five kids.
GoHenry Debit Card
The GoHenry card is actually the debit card for children. The card carries out functions just like the regular debit card but with learning tools to be able to guide the young ones on money management.
Key Features:
- GoHenry allows parents to put limits on spending and get notified on every transaction.
- The card comes with a savings goal to help kids understand saving.
- GoHenry offers custom cards, allowing kids to select their own card design.
- Financial literacy tools, like videos and quizzes, within the app.
Pros:
- Strong parental controls and supervision.
- Can establish spending limits and savings goals.
- Includes age-targeted financial literacy.
Cons:
- Monthly fee to $3.99 per child.
- There is no opportunity for cash back or savings interest.
BusyKid Visa Prepaid Spend Card
BusyKid offers a completely different level of financial education: it ties in chores and allowances with pre-paid debit cards. The card is perfect for those parents who really want to get into specifics of earning and management of money.
Key Features :
- Parents can assign chores and set allowances that get directly deposited onto the card.
- With all these, BusyKid has another unique feature: kids can invest a portion of their earnings in stocks, providing an investment-learning experience.
- Donating to charity facility is also provided where a minute percentage of the earning is donated.
- Real-time notifications for spending and parental controls.
Pros:
- Chores management and financial education at the same time is possible.
- He/she can learn to save, invest, and learn with this card.
- No monthly charge only a one-time activation charge of $19.99.
Cons:
- Limited number of features when compared with other cards
- Interest is not paid to the account holder
Choose the Best Debit Card for Your Kid
Choose the best debit card for your kid by considering the following things :
- Your Child’s Age: Some cards have a specific child age range in mind, whereas others are structured for teenagers.
- Spending Habits: Some debit cards are best suited for certain types of spending and financial objectives.
- Educational Tools: Consider a card that offers your child educational resources for teaching about money management.
- Parental Control Needs: Think about how much you want to have control over your child’s spending and if the card allows for needed tools.
Understanding Fees and Charges
While kids’ debit cards are pretty great, a smart parent will know what the charges are. Here are a few typical types of charges:
Monthly Maintenance Fees: It could be between $2.99 to $4.99 a month, depending on the card.
ATM Withdrawal Fees: Many cards, in fact, will charge your child to use an ATM. Make sure then that your child does not have a frequent need to take emergency cash.
Foreign Transaction Fees: If your child will be using the card abroad, you should be aware of additional charges for foreign transactions.
A lot of this could be learned from charges—most of them subtle—or if you take the time to analyze and compare the benefits of one card over another.
Conclusion
Choosing the right debit card for your child is one of the franchising steps in teaching them financial responsibility. The Greenlight, GoHenry, and BusyKid cards are all great, each fitted with unique features, catering to different needs and preferences. Try to find the right card for your kid, and with it, the child will easily learn the essential skills for using money.