Best kid’s debit cards in September 2023

Navigating the world of finance can be tricky for adults, let alone children. However, introducing kids to the concept of money management at an early age can set them up for a future of financial success. One of the ways parents are doing this is through kids’ debit cards. These cards not only teach children about spending and saving, but they also offer a safe way for them to handle money. But with so many options available, how do you choose the best one for your child? In this article, we will compare the best kids’ debit cards on the market, breaking down their features, benefits, and drawbacks to help you make an informed decision.

The best kid’s debit cards

A list of the most recommended kid’s debit cards from the web.

Understanding what a kid’s debit card is

A kid’s debit card is a financial tool designed to help children learn about money management. These cards are typically linked to a parent’s checking account, allowing parents to monitor their child’s spending habits and teach them about budgeting, saving, and responsible spending. Kid’s debit cards often come with customizable controls for parents, like setting spending limits or blocking certain types of purchases. They can be a safe and effective way to introduce kids to the world of personal finance, equipping them with skills they’ll need in adulthood.

Benefits of debit cards for kids

Debit cards for children offer a multitude of benefits. They are an excellent tool to teach children about money management from a young age. These cards can help kids understand the value of money and how to spend it wisely. They also provide a safe and controlled environment for kids to learn about banking and digital transactions. Furthermore, they can be a relief for parents too, as they offer the ability to monitor and control their child’s spending.

• Teaches Money Management: Debit cards for kids are an excellent way to introduce the concept of money management. They can learn about earning, saving, and spending responsibly.
• Safe and Controlled Environment: These cards offer a secure platform for kids to learn about digital transactions, while parents can control and monitor their spending.
• Prepares for the Future: In today’s digital age, being familiar with electronic transactions is a necessary skill. Kids’ debit cards can prepare them for the future.
• Convenience for Parents: Parents can easily transfer money to their kids’ debit cards, reducing the need to carry cash.
• Spending Limits: These cards often come with spending limits, preventing kids from overspending and teaching them to budget.

Potential drawbacks of debit cards for kids

While kid’s debit cards offer a number of benefits, it’s also important to consider the potential drawbacks. Firstly, they may not help your child understand the value of physical money as they might view the card as an endless source of funds. Secondly, there is a risk of overspending as they might not have a full grasp of budgeting yet. Lastly, there’s the potential for loss or theft, which could put your child’s money at risk.

• May not teach the value of physical money: In a world of digital transactions, kids may fail to understand the value of physical cash. They might see the card as a never-ending source of money, which could lead to poor financial habits in the future.
• Risk of overspending: Without a proper understanding of budgeting, kids might be tempted to spend more than they have. This could lead to overdraft fees and a negative balance.
• Potential for loss or theft: Like any other card, kid’s debit cards can be lost or stolen. Although most come with security features, it’s still a risk that parents need to consider.

How to compare kid’s debit cards

When comparing kid’s debit cards, there are several factors to consider to ensure you are making the best choice for your child’s financial learning and safety. First, consider the age appropriateness of the card. Some cards are designed for younger children, while others are more suitable for teenagers. Secondly, look at the fees associated with the card. This can include monthly fees, ATM withdrawal fees, and fees for reloading the card. Thirdly, consider the parental controls that come with the card. This can include the ability to monitor spending, set spending limits, and block certain types of purchases. Lastly, consider the educational resources that come with the card. Some cards come with apps or websites that teach children about financial responsibility.

1. Greenlight Debit Card for Kids: This card allows parents to control where their kids can spend money and also has educational tools to teach kids about money management. It charges a monthly fee but offers no fees for reloading or ATM withdrawals.

2. BusyKid Visa Prepaid Spend Card: This card allows parents to tie chores to allowance and also offers the option to invest in real stock. It has a low annual fee and no reload or ATM fees.

3. GoHenry Debit Card for Kids: This card offers parental controls and also allows children to save, spend, and give with their personalized card. It charges a monthly fee and has a small fee for ATM withdrawals.

4. FamZoo Prepaid Card: This card is a virtual family bank that helps parents teach their kids good money habits with minimal fees. It allows parents to pay allowances, divide money into saving, spending, and giving, and also offers free financial literacy worksheets.

5. Current – A Visa Debit Card for Kids: This card offers faster direct deposits, gas hold removals, and points for cashback at participating stores. It charges a monthly fee but offers no fees for ATM withdrawals.

Types of kid’s debit cards

There are a variety of debit cards available for kids, each designed to help them manage their money responsibly while providing parents with control and oversight. These cards are not just regular debit cards, but rather, they are tools to teach kids about money management, budgeting, and financial responsibility. They come with different features, restrictions, and benefits to cater to the diverse needs of kids and their parents.

1. Prepaid Debit Cards: These cards are loaded with a set amount of money by the parents. The child can spend only the amount loaded onto the card, which helps to control overspending.

2. Reloadable Debit Cards: These cards can be reloaded with money once the initial amount is exhausted. They offer more flexibility and are a good option for older kids who have a better understanding of money management.

3. Bank Linked Debit Cards: These are linked to a kid’s bank account and allow the child to withdraw money from the account using the card. They are a great way to introduce kids to banking.

4. Parental Control Debit Cards: These cards give parents the ability to monitor their child’s spending, set spending limits, and block certain types of purchases. This is a great way to guide your child’s spending habits.

5. Educational Debit Cards: Some debit cards for kids come with educational resources to teach them about money management, savings, and budgeting. These resources can be in the form of apps, online tutorials, or booklets.

6. Allowance Debit Cards: These cards are designed to automate allowance payments from parents to kids. Parents can set up automatic transfers on a weekly or monthly basis and can also reward their kids for chores or good behavior through bonus transfers.

7. Online Shopping Debit Cards: These cards are specifically designed for online purchases. They often come with added security features to ensure safe online transactions.

Conclusion

In conclusion, kids’ debit cards are an exceptional tool for introducing children to the world of finance and teaching them valuable money management skills. They offer a safe, controlled environment for kids to learn about digital transactions, budgeting, and saving. While there are potential drawbacks, such as the risk of overspending or not understanding the value of physical money, these can be mitigated with parental controls and guidance. When choosing a card, consider factors such as age appropriateness, fees, parental controls, and educational resources. Remember, the goal is not just to provide a means for your child to spend money, but to equip them with the knowledge and skills they will need for financial success in adulthood.