Most of the time, the children learn to save money by putting the coins in a piggy bank or money jar. From there, they slowly graduate to the basic savings account of a bank.
However, as they turn into teenagers, it becomes increasingly difficult for them to use cash all the time for their various expenses. Financial consultants think that this is the best time for them to get their hands on a Spendsafe Debit Card.
The debit card will not only help them to learn using plastic money but also help them to understand how they can put a leash on their spending even when they are using cards.
6 Reasons You Should Give Your Children Debit Card
If you are still on the fence about this issue, let’s check some really interesting reasons for offering your children a debit card.
1. It will Make them Financially Responsible
A debit card offers a unique opportunity to the teenager. For the first time, it introduces the concept of earning and spending, and the necessity to create a balance between these two.
As it helps them to track their account balance, your kids can see the declining balance once they spend the money and will want to fill it up by doing chores or other work. This will be even more beneficial if your children manage their own budget and finances. In this way, the kids will understand fiscal responsibility by setting the savings goals for higher education, car insurance, etc.
2. It can Teach The Kids To Budget
According to Financial consultants, the Spendsafe Debit Card provides an opportunity to contextualize the conversations about finances. The kids who get to make real-life trade-off decisions can better understand the value of a dollar.
As they will have full control over their money, the kids will naturally learn to budget their spending and will be inclined to save more money. As they will not get an endless stream of money from the parents, the kids will be able to make smart decisions about trade-offs and learn about delayed gratification as well.
3. It Prepares for The Credit Card
When your kids will turn 21, they will be able to apply for and get a credit card. However, to use the credit card to their best abilities, the children must learn about them. The debit card gives your kids a valid lesson about using a credit card and the burden that comes with it.
As they already will have the experience of handling money and making smart financial decisions, your children will be able to make clever decisions about using credit cards as well.
Financial consultants think that financial literacy has a positive relationship with building long term wealth. Offering the Spendsafe Debit Card to your children in their early days will help them to become financially independent and push them towards having a bright and healthy financial future.
4. You Can Have The Control Over Their Spending
As the guardian, you can have access to the account information of your children. In this way, you will be able to keep an eye on the spending habit of your kids. If you think they are not doing something right, you can easily step up and help them understand what financial mistakes they are making.
In this way, you will be able to actively guide your children about their financial decisions and help them to manage the money better.
5. When Is The Right Age To Offer A Debit Card to The Kids?
There is no hard and fast rule about this. The learning ability of children can vary. Most children get ready to handle money when they are in middle school. However, you have to keep in mind that other children do not get ready to handle money until they reach high school age.
Financial consultants think that it is always better to let the children make mistakes under the tutelage of their parents instead of waiting until they are on their own. If you do that, know that the financial impact will be greater on your kids.
6. What Type of Cards Should You Get For Your Children?
You can start by asking your bank whether they provide an account with debit cards for children. While some of the banks do not allow children under 16 years to have debit cards in their name, others offer debit cards for children who are 13 or younger.
While there are prepaid debit card options as well, the experts prefer a debit card with checking or savings accounts for the children. This will give the parents an option to look over the shoulders of the children to check what they are doing with the money.
Also, while searching for the institution, you should check for features like low or no fees for maintenance and funding, spending limit-setting options, online account monitoring, etc.
While a Spendsafe Debit Card helps the children to learn budgeting and finances, they require the attention of the parents as well. Instead of giving your children the debit card and forgetting all about it, you should devote the necessary time to discuss spending, monitor the account, and offer better savings guidance.