Ideally, children should be taught about financial responsibility at an early age. Most children would first learn about saving by stashing their coins and cash in a piggy bank or jar. From there, they will learn more about managing their money through savings accounts.
Nowadays, there is one tool many parents use to give their kids hands-on experience with money management—kids debit card. A debit card can provide a tangible way for children to make the connection between spending and the value of money. A debit card can also be an effective way for kids to discover the basics of:
- Creating a monthly spending plan using their earnings and allowance
- Differentiating between wants and needs
- Tracking expenses through online tools, text alerts, and banking apps
- Making safe card payments using a mobile phone
The Right Age to Give Your Kids a Debit Card
Ultimately, giving your kids a debit card is a personal decision. Often, it will all boil down to your judgment as a parent and the child’s maturity level. For some experts, the ideal age to get a child a debit card is around 12 years old.
Initially, they should be given access to small amounts of money. Using a debit card can also prepare them for handling more money in the future as they go through high school, college, and eventually adulthood.
Why You Should Give Your Kids a Debit Card: The Enticing Benefits
Giving your kids access to debit cards offers many benefits. Some of the most enticing ones include:
Debit Cards Encourages Kids to Help With the Household Chores
One of the most appealing benefits of providing your kids with a debit card is that they can help them better understand the concept of earning and saving. Additionally, tracking their account balance can also encourage them to earn, especially since they manage their own money.
Some parents shared that when their kids were given access to debit cards, they have been asking if they can help around the house to earn some extra money. Apart from learning the importance of saving, debit cards also teach kids the value of identifying their needs versus their wants.
Debit Cards Can Teach Kids How to Manage Their Money
Debit cards designed primarily for kids can provide an excellent opportunity for parents to have learning conversations about finances. Using debit cards can also give kids the opportunity to make real-life trade-off decisions so they will learn the value of a dollar.
When they control their money and spending, kids will slowly learn how to manage their budget and spending. Eventually, they will master how to manage their money accordingly and make better financial decisions. Some kids even become more cautious about their spending since they know they have to earn the money.
Debit Cards Can Rein in Online Purchases
Unlike many years prior, kids nowadays can easily make online purchases. If they use your credit card, you can end up with a huge bill. Fortunately, a debit card can help you set boundaries and supervise their spending. You will also get a better insight into how much money they are spending when they are online.
Undeniably, introducing your kids to debit cards is a brilliant idea. However, it is recommended that you and your kids know and understand its benefits and its downsides. With many transactions now done virtually, allowing them to use debit cards will make their transition to today’s cashless society less bumpy.