Best Debit Cards For Kids And Teens
The world’s been digitizing for some time now, and innovations affect all age groups, including children and teenagers. This is especially true for the banking sector, commerce, and services. In 2024, it is important to give the younger generation access to financial transactions, for example, through a teens debit card or some similar payment method.
If you worry about excessive spending or non-targeted purchases, you can track spending and activate parental controls with a debit card for kids. You will always be able to tell where and how much your children spend, and even limit transaction amounts if need be. You can set monthly, daily, or weekly limits or prohibit payments at certain stores. Moreover, with debit cards for teens, you can provide your child with the opportunity to save, receive rewards, get cash back from purchases, and access various bonus programs. This way, a teen can develop digital and financial literacy and learn to be smart with their money.
We at Rates reviewed several options for teenager debit cards so you can choose the optimal solution.
Greenlight Debit Card Overview
Despite being only 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 finances 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 system ranges from 1% to 5% annually;
- An automated reward system where you can pay for completed tasks, such as achieving high grades in school or completing homework.
The only drawback is the monthly fee, ranging from $5 to $15. By the way, this directly affects the interest accrued on the deposit.
The advantages of this kids’ debit card also include a free trial period of 30 days, a specialized mobile app, funds insurance, and a flexible control system that links the card to a parent’s bank account.
GoHenry Debit Card Overview
When talking about debit cards for kids, GoHenry is another go-to option. This type of payment tool may not offer additional rewards for saving money, but it is one of the most secure 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, confidentiality always stays at the highest level. Plus, a free debit card for kids can be opened starting from the age of six. This allows you to give your children a certain amount of money with peace of mind.
This payment tool also has several 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 in the specified amount;
- The child receives a reward for completing certain tasks. This way, you can incorporate financial incentives into raising and teaching children to fulfill their household duties.
As for the drawbacks, we can only note the monthly fees ranging from $5 to $10 (the latter applies when a total of four children’s cards are connected to the system).
Step Debit Card Overview
Step cards are among the most effective and promising free debit cards for teens. By integrating educational content directly into the banking experience, the 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 incentivizing positive habits.
Among the advantages of the card are:
- A bonus program for discounts or points at partner networks;
- 5% annual bonuses for deposits starting from $500;
- Digital literacy courses;
- Absence of any fees, periodic charges, or usage fees;
- 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 quite significant. The privacy policy encourages 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 Overview
The BusyKid card is the last example of prepaid debit cards for kids we’re gonna discuss. This payment tool operates as a deposit where you or your children can use the money for purchases and more.
Key advantages of this type of prepaid debit cards for teens 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 modern mobile application.
The only drawback is a monthly service fee of $4 (for a total of $48 annually).
Final Thought
We have evaluated all available options, including third-party payment solutions for children and teenagers. 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 option for children’s bank accounts. Each provider has pros and cons, which you should consider based on your preferences and your child’s wishes.
FAQ
Does a debit card have safety features for children and teenagers?
Yes, most cards protect the privacy of young people and allow parents to set spending limits, confirm large transactions, restrict card usage in certain stores, and more. In addition, parents can link debit cards for kids to their own accounts, allowing them to monitor balances, track expenses, and cancel transactions if needed.
How do I compare different debit cards on fees?
The main metrics to look for are the monthly service fee, commissions, and bonuses. The service fee is usually based on the card’s accumulation capabilities, so it’s not advisable to try to save money here. Providers generally assess their services similarly and often do not charge commissions for card usage but instead monetize them in other ways. Also, be sure to review terms and policies.
How do I get a debit card for kids?
To order a physical or digital card, download the app and obtain or provide a permission from a parent or guardian. The child or teen (in case you want a free debit card for teens) must also meet the minimum age requirement. Additionally, linking the child’s account to the parental one is a key condition.
