Best Cards For Kids And Teens
Teaching financial literacy from a young age is now more important than it ever was. While this may sound a bit dystopian at the first glance, enjoying some financial freedom from a young age is a natural way to learn essential life skills. And a secure debit card made specifically for children is a great way to put this theory into practice—lots of banks put substantial effort to claim the title of the best debit card for teens and kids. You, in turn, get an opportunity to monitor your child’s spendings, encourage positive financial habits, and set limits when necessary.
If you are a parent, you may wonder—what is the best debit card for kids? Luckily, there is more than one option to choose from. For this article, we’ve compared several debit cards in terms of features, fees, and rewards. Keep reading to find out the results!
Greenlight Debit Card
Despite being the first offer on our debit card for teens list, Greenlight’s program is actually pretty decent. It is a powerful payment tool that gives your children access to finance management and allows them to save.
The advantages of the card include the following:
- No fees for network payments, POS transactions, or cash withdrawals;
- The bonus savings deposit with up to 5% interest annually;
- An automated reward system where you can “pay” your child for completed tasks, such as achieving high grades in school or completing homework.
The only drawback is the monthly fee starting from $5.99. By the way, this directly affects the interest accrued on the deposit.
The advantages of this card also include a free trial period of 30 days, a dedicated mobile app, funds insurance, and a flexible control system that links the card to a parent’s bank account.
GoHenry Debit Card
When talking about debit cards for kids, GoHenry is another go-to option. While it doesn't offer additional rewards for saving money, this bank is one of the most secure providers on the market. The company’s policy clearly states that no information about children is shared with third parties, even with their consent. This way, you can be sure that your child’s personal info remains safe whatever they decide to do. Plus, this free debit card for kids can be opened starting from the age of six. With GoHenry, you can give your children money while retaining peace of mind.
This payment tool also has several additional advantages. Firstly, there is a convenient mobile application. Secondly, there are no transaction fees or cash withdrawal fees. Finally, it has an automated reward system. This system works as follows:
- Tasks are set from the parent’s account for the child to complete;
- Upon confirmation of a positive result, funds are transferred from the designated account to the child’s card;
- The child receives a reward for completing the task. This way, you can incorporate financial incentives into teaching children to fulfill their household duties.
As for the drawbacks, we can only note the monthly fees ranging from $4.99 to $9.98 (the latter applies when a total of four children’s cards are connected to the system).
Step Debit Card
Step cards are among the most effective free debit cards for teens. By integrating educational content directly into the banking experience, a Step card goes beyond mere transactional interactions, fostering an understanding of money management principles. The platform’s expense tracking feature encourages responsible spending by allowing teens to monitor their purchases in real time, helping them to develop budgeting skills early on. The bonus system rewards users for savings and responsible financial behaviors, further reinforcing positive habits.
The advantages of this best free debit card for kids include:
- A bonus program for discounts or points at partner networks;
- 8% cashback on purchases and $500 in annual credits;
- Digital literacy courses;
- No fees or periodic charges;
- The ability to use the debit card as a credit card without accruing interest.
Additionally, the provider does not set age requirements, allows linking teen accounts to parental ones, and opens up investment functions for teens.
There is only one notable drawback, but it is an interesting one. The bank’s privacy policy includes sharing a minor customer’s data with partners. While you can opt out of this, it requires direct contact with representatives of the institution.
BusyKid Debit Card
The BusyKid card is the last example of a prepaid card for kids we’re going to discuss. This payment tool is essentially a deposit platform that your children can use for purchases and more.
Key advantages of this prepaid cards include:
- An integrated investment platform;
- Savings system based on direct deposits or reward functions;
- Zero transaction fees, deposit fees, and withdrawal fees;
- Full financial control through a parental account;
- A mobile application.
The only drawback is a monthly service fee of $4 (for a total of $48 annually).
Final Thought
In the article, we have evaluated the most popular options in this category, including third-party payment solutions. As you can see, each offer has its distinct advantages and drawbacks. For example, GoHenry and BusyKid are better optimized for families with more than three children. Comprehensive services somewhat reduce parental expenses on card servicing and provide convenient control over multiple accounts. At the same time, these services have modest bonus systems. Greenlight and Step, on the other hand, offer a range of opportunities for earning on transactions and savings, financial literacy programs, and more.
Remember, there is simply no one-fits-all debit card for kids. Each provider has pros and cons, which you should consider based on your preferences and your child’s wishes.
