Getting a prepaid credit card for kids & teens
Prepaid credit cards can help teach your child how to be financially responsible, without the temptation of seemingly unlimited spending.
It’s never too early to start learning good spending habits. A prepaid card lets children manage their money and make in-store and online purchases even if they don’t have a bank account. The best part? There’s no debt involved—kids only spend money that has been preloaded onto their cards.
According to a 2024 CPPO report, the Canadian prepaid market is poised for growth, with total loads expected to surpass $17.4 billion by 2028, up from $11.4 billion in 2023. Prepaid accounts are popular among Gen Zers, who are opening accounts faster than Millenials and Gen Xers.
Looking for a parent-friendly card to help your child learn to spend and save responsibly? Let’s walk through your options for getting a prepaid credit card for kids and teens in Canada.
Key takeaways
- Prepaid cards let teenagers spend only the money loaded onto the card, unlike credit cards that allow borrowing and debit cards that are linked to a bank account.
- When choosing a prepaid card for your child, consider factors like fees, reload options, transaction limits and spending controls.
- Prepaid card purchases in Canada are protected by the fraud prevention measures from payment networks like Visa and Mastercard.
Best prepaid credit card for kids & teenagers in Canada
There aren’t many prepaid cards for teens and kids in Canada. If you’re not interested in opening a youth bank account, consider the Mydoh Smart Cash Card.
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Can kids & teens get added to their parents’ prepaid card accounts?
Prepaid cards typically have fewer requirements than regular credit cards, but users are typically restricted to Canadian residents who are at least the age of majority in their province or territory.
Unfortunately, this means some of the most popular prepaid cards—like KOHO and Neo Financial—aren’t available to teens. These fintech money management accounts exploded in popularity over the last few years due to their generous perks, low or no fees and their emphasis on digital and online banking.
So, how old does your child have to be to get added to your adult prepaid card?
Age of majority in all Canadian provinces & territories
18 years old
- Alberta
- Manitoba
- Ontario
- Prince Edward Island
- Quebec
- Saskatchewan
19 years old
- British Columbia
- New Brunswick
- Newfoundland and Labrador
- Northwest Territories
- Nova Scotia
- Nunuvut
- Yukon
Can I let my child use my prepaid card or credit card?
Yes. In Canada, it’s legal to let your child or teen use your prepaid card or credit card. But you most likely won’t be able to officially add them as an authorized user to your account or get an additional card issued in their name.
That’s because primary account holders and authorized users must usually be at least the age of majority in their province or territory (either 18 or 19 years old). This is true for major Canadian banks as well as other prepaid card issuers like Neo Financial, KOHO and Canada Post.
Even if you can’t get a prepaid credit card for your kids or teen in their name, you can still teach them responsible spending habits by giving them a card in your name.
Just keep in mind that adding a teenager as an authorized user on a credit card means you are agreeing to assume all responsibility for their spending. If they run up the charges and you can’t or don’t pay, this will impact your credit history and score. It’s one reason why parents tend to favour debit cards or prepaid cards over authorized user credit cards for their teens.
Some examples of reloadable prepaid cards in Canada include:
- KOHO Everything Prepaid Card (plans vary from free to $14.75/month)
- Neo Money Card
- Wealthsimple prepaid Visa Card
- Canada Post Prepaid Reloadable Visa Card
Prepaid credit cards vs. prepaid debit cards for kids
Not sold on getting prepaid credit cards for kids? Consider getting a debit card linked to a youth bank account instead.
Like a prepaid card, a debit card lets young spenders learn how to responsibly manage money. Consider a fee-free bank account with a card your teenager can use for online or in-store purchases and ATM withdrawals. Avoid signing up for overdraft protection, so your child can only spend available funds.
Compare youth bank accounts here.
Features of prepaid credit cards for kids and teens in Canada
To find the best prepaid card for teens in Canada, consider these features relative to their needs and spending habits:
- Reloadable cards. It’s easy to load your card with funds at the time of purchase and again whenever your card is low on funds. You can usually add funds to the account over the phone, through an online transfer or through an online account.
- Worldwide acceptance. Prepaid cards can usually be used anywhere card payments are accepted and are particularly useful when travelling overseas.
- See the transactions. As the primary account holder, you can see where your teen is spending their money.
- Set limits and allowances. You can set up a monthly allowance, freeze the card and set spending limits for your teen. Your card might let you control where money is spent and prohibit cashpoint withdrawals.
- Contactless technology. Some prepaid cards come with contactless payment technology, meaning you can tap the card without entering the PIN on purchases up to a certain amount. Although this is a convenient option, it is also a very risky option since it’s a very hands-off approach to spending, meaning money can be spent more carelessly.
Expert insight
"A prepaid card is a great tool for teens
These types of cards can be a great way to build responsibility and good money habits while teaching older kids about how debit and credit cards work.
If your child already receives a weekly or monthly allowance, you can start by putting the amount on a card and giving them access to it under supervision. Then, you can allow them to earn privileges like having the card in their own wallet or using it unsupervised."
4 factors to consider when choosing a prepaid credit card for kids
To pick the best prepaid credit card for your teenager, keep the following factors in mind:
1. Account fees. Prepaid cards come with account fees, come with account fees, so make sure you and your teen read the relevant terms and conditions. Be sure you know what you need to pay—and when. Some prepaid cards charge you an activation fee as well as an inactivity fee or a rolling annual fee. To keep down the costs of your teenager’s cashless prepaid card, read the prepaid card’s fine print.
2. Foreign transaction fees. Not all prepaid cards allow the user to make purchases outside of their home country. If travelling with a prepaid card is important to your family, be sure to pick a prepaid card that offers global transactions. Just remember that foreign transactions usually incur an additional currency conversion fee. To keep costs down, consider a multi-currency prepaid travel card (or a card with no foreign transaction fees).
3. Daily transaction limits. Like credit and debit cards, most prepaid cards have daily limits when it comes to cashless and online transactions as well as ATM withdrawals. Make sure your teenager is aware of these restrictions, and pick a card that offers free or low-fee transactions with sufficient limits to meet your teen’s needs.
4. Time it takes to reload the card. The amount of time it takes to reload funds onto the card can vary based on the card’s reload method. In general, a bank transfer can take up to three business days while reloading the card in person at a store can be instantaneous. Other prepaid cards allow for automatic reloads (from savings or chequing accounts). To minimize frustration, pick a prepaid card with a transfer method that works for you and your teen.
Bottom line
As a money tool, a prepaid credit card for kids can be an excellent way for your child or teen to learn how to budget without the risk of overspending. But there aren’t many prepaid cards for teens and minors in Canada.
Mydoh is a solid option, but you can also let your child use your prepaid card. Getting a debit card linked to a youth bank account might be better, since it won’t impact your credit score and your child can get a card in their name. BMO Performance Chequing Account
Related: Learn more about prepaid cards
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