Getting a prepaid credit card for kids & teens

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.

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.

Monthly Fee	Transaction Fee	Foreign Transaction Fee	Rewards
Mydoh Smart Cash Card	$0	$0	2.5%	N/A	View details Compare product selection Compare	loading	Why we like it Offered in partnership with RBC and Visa, the MyDoh prepaid card costs $0 per month and is connected to an app providing both parents and children access to the account. Kids or teens can make in-person and online purchases, while parents can view balances, check transactions and transfer money onto the card. Up to five children and two parents can be added to an account. Pros & cons Pros Easy parental account monitoring Track tasks and chores Kids get a physical Visa Debit card Backed by RBC, a major Canadian bank Cons No desktop app (requires a mobile device) Chore payments always on Saturday (flexible frequency) Can only be used at point-of-sale terminals (no ATM usage or cheque deposits) Fee for customizable card (optional)

loading

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

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 Mastercard Prepaid Card (plans vary from $0/month to $14.75/month)
• Neo Money Card
• Wealthsimple prepaid Mastercard
• 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."

Victoria Taylor

Founder and Teacher of Best Case Parenting

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 credit 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

• Earn up to an $900 bonus
• Exclusive: Get an extra $175 reward from Finder
• Enjoy up to 4.65% promo interest

Go to site

FAQs about prepaid cards for teens & kids

• Is a prepaid card good for my teen?

  Prepaid cards are a good option for teens who have mastered the basics of bank accounts but are too young to get and use a credit card. With a prepaid card, a teenager can learn the benefits of cashless transactions, the process of online payments and the dangers of impulse spending—only they won't incur debt. They'll just deplete the money they'd put aside to spend. For that reason, a prepaid card can be an excellent tool to help your teen learn cash management using digital tools.

• Are prepaid cards safe for teenagers?

  Yes, prepaid cards in Canada are safe for teenagers. Purchases made with prepaid cards are protected by the same anti-fraud measures and guarantees that come with Visa, Mastercard and American Express credit cards. This means you or your teen will not be responsible for fraudulent transactions as long as you adhere to the prepaid card agreement. Always read the fine print to understand the limits and responsibilities you are agreeing to when purchasing and using a prepaid card.

• Are prepaid cards accepted worldwide?

  Yes and no. Like credit cards credit cards from Mastercard, Visa and American Express, most prepaid cards are accepted worldwide at millions of shops, online stores and ATMs. If the goal is to enable your teen to use the prepaid card while travelling, be sure to confirm where the card can be used and what fees are charged based on worldwide use.

To make sure you get accurate and helpful information, this guide has been edited by Stacie Hurst as part of our fact-checking process.

Written by

Romana King

Group Editor | Personal finance expert

Romana King was the Canada group editor at Finder and a personal finance expert. As an award-winning personal finance writer and real estate expert, she has spent almost two decades helping Canadians make smarter money management decisions. Her first book, House Poor No More: 9 Steps That Grow the Value of Your Home and Net Worth, launched in November 2021, continues to be an Amazon bestseller and won the Excellence in Financial Journalism Book Award in 2022. See full bio

Romana's expertise

Romana has written 24 Finder guides across topics including:

• Personal Finance
• Real Estate
• Estate Planning
• Insurance
• Retirement Planning
• Debt Strategies

Co-written by

Emma Balmforth

Producer

Emma Balmforth is a producer at Finder. She is passionate about helping people make financial decisions that will benefit them now and in the future. She has written for a variety of publications including World Nomads, Trek Effect and Uncharted. Emma has a degree in Business and Psychology from the University of Waterloo. She enjoys backpacking, reading and taking long hikes and road trips with her adventurous dog. See full bio

Emma's expertise

Emma has written 119 Finder guides across topics including:

• Banking
• Personal Loans
• Car Loans
• Business Loans