Are you looking for Best Prepaid Debit Card for Kids? The use of Prepaid Debit Card For Kids is an effective way to teach your children about the importance of managing their money. The most common cards are debit cards or reloadable prepaid cards.
Kids can learn money management skills with the best debit cards for kids, which offer tools and features that can help them. Parents can prevent their children from making bad money decisions by monitoring and controlling them. Kids can choose from free debit cards, prepaid cards for teens, and other options.
The cards serve as pocket money cards, allowing parents to set spending rules for their children while still teaching them basic financial skills they will need in adulthood.
Here’s what you need to know about Prepaid Debit Card For Kids, how they differ from kids’ debit cards, and how to choose one right for your family.
What is A Prepaid Debit Card?
Contents
- 1 What is A Prepaid Debit Card?
- 2 How Does Prepaid Debit Card For Kids Work?
- 3 Can a Kid Get a Prepaid Debit Card?
- 4 Are Prepaid Debit Card For Kids Safe?
- 5 Top Best Prepaid Debit Card For Kids
- 6 Revolut
- 7 How To Get Prepaid Debit Card For Kids?
- 8 Things To Consider Before Choosing Prepaid Debit Card For Kids
- 9 Pros and Cons of Prepaid Debit Card For Kids
- 10 Alternative Bank Accounts for Kids
- 11 How Can You Teach Kids to Save Money?
- 12 FAQ
- 12.1 Are there any banks that offer credit cards for kids?
- 12.2 Should I give my child a prepaid credit card?
- 12.3 How can I tell whether my child’s personal data is compromised?
- 12.4 Will I know where my child uses the prepaid debit card?
- 12.5 Is it possible for teens to use prepaid debit cards online?
- 13 Conclusion
The prepaid debit card is not linked to a bank account, unlike a regular debit card, and it does not have credit associated with it. Once the money has been spent, the overdraft facility cannot be used. The account is preloaded with money via a bank transfer.
The use and acquisition of these cards are simpler than those of other types of cards. The best way to describe them is ‘pay as you go’ because they work similarly to credit-topped cell phones.
A wide variety of prepaid debit cards are available depending on your needs. The most popular use of these cards is for overseas travel, while others are used as a means of budgeting. Bank cards for kids are also increasing as the Western world moves toward a cashless society.
How Does Prepaid Debit Card For Kids Work?
The prepaid debit card for kids function just like regular debit cards, but they do not have any connection to a bank account. Money is preloaded into them instead. The amount of money available on your kids’ cards will be the maximum they can spend.
A prepaid card works like a bank debit card, allowing kids to purchase online and in stores. You can also withdraw cash from ATMs. The difference between a traditional debit card and a prepaid card is that you can get one for your child as young as six.
The majority of these games also teach kids money management skills. You’ll also find parental controls, card protection, and money-monitoring tools,
Can a Kid Get a Prepaid Debit Card?
The answer is yes. A kid can get a Prepaid debit card as well. A Prepaid Debit Card For Kids account can be opened by a child as young as six years old in some cases. Prepaid cards allow parents or guardians to add funds to their children’s accounts to allow them to spend them.
They may be able to create savings goals, donate to charity, or even invest with these, as they receive a debit card of their own and can access their accounts through a mobile app. There are many Prepaid Debit Card For Kids with educational resources that help them learn about basic money concepts, such as how to make a budget or how credit works.
Parents and guardians must register their children as co-owners if they are under 18 years of age. It will be the responsibility of the parent or guardian to monitor and control the account and Prepaid Debit Card For Kids usage, as well as the mobile app connected to the account.
46% of Parents Say Their Child Used Their Credit or Debit Card Without Permission and without their permission. Prepaid Debit Cards are quite famous between kids.
Are Prepaid Debit Card For Kids Safe?
The main difference between prepaid debit cards and regular debit cards is that they are not linked to a bank account. Money must be preloaded into them before they will work.
It is also possible for parents to control how much their children can spend, as well as where they can spend it.
The safety of a card is also greater than that of cash. It’s still possible to lose or steal a bank card for kids, but you’re much more likely to get your money back. Some credit cards can even be frozen immediately to prevent them from being used until a replacement card is obtained.
Financial Services Compensation Scheme does not cover so-called ‘e-money accounts,’ which include prepaid cards. If a provider goes bankrupt, this scheme protects customers’ money.
Top Best Prepaid Debit Card For Kids
This list provides a list of the best Prepaid Debit Card For Kids that offer several benefits and are available at affordable rates.
Greenlight
Regarding Prepaid Debit Card For Kids, the Greenlight prepaid debit card offers some of the best features. This company offers a free trial and low extra fees in addition to one of the lowest prices on the list. Parents can educate their children about money with Greenlight without worrying about minimum or maximum ages or balance requirements. In addition to its educational features, the app also has kid-focused features that promote financial literacy.
A mobile app allows customers to monitor their joint accounts through the company’s financial monitoring service. You can manage chores, receive real-time notifications, and automate allowances through the Greenlight app for iPhones and Androids.
| Savings | 5.00% |
| Intro or bonus offer | Get the first 30 days for free. |
| Fee | From $4.99 per month |
| ATM transaction fee | $0 |
Step
The Step is the best free Prepaid Debit Card For Kids. All ages are welcome, and an account for kids with a sponsor and an account for younger children with a parent is available. It’s a secured credit card that doesn’t charge monthly fees, overdraft fees, or interest charges.
Money 101 course teaches basic financial topics and allows kids to earn savings, cash back, and referral rewards. A key feature of Step is that it is the only free kids’ credit card that builds credit. The Step deposit account is limited to its amount, so kids are not at risk of overspending. To build your kid’s credit history, up to two years of retroactive payments are reported to the credit bureaus after the child turns 18.
| Savings | Cashback on select offers |
| Rewards | Cash back on select offers |
| Fee | $0 per month |
| Overdraft fee | $0 |
Current
A similar prepaid card to Copper is Current Teen Banking, which is aimed at teens ages 13 and older. Money can be spent, saved, earned, and even donated to charities through the account. As prepaid debit cards let multiple family members add funds, they are also great for co-parenting.
Teenagers can set customizable savings goals through Current’s various features that encourage saving. A roundup feature helps teens save more frequently. The amount of each transaction is rounded to the nearest dollar. A portion of the difference is saved directly.
There is a lot of flexibility in the parental controls. A parent’s account can be managed by setting spending limits, blocking certain merchants, and receiving account alerts. The amount of freedom you give your child depends on how comfortable you are with it.
| Fee | $0 per month |
| ATM transaction fee | $0 |
| Foreign transaction fee | 3% |
| Overdraft fee | $0 |
| Paper statement fee | $2 |
BusyKid
There is something for just about every age group with BusyKid. As young as 3 years old, you can create an account. The program is called BusyKidJr, and it’s free for children aged three to five. For children ages 6-16, there’s BusyKid, which costs $2.99 a month for up to five children and includes two BusyKid Prepaid Visa Spend Cards. In terms of price, BusyKid is one of the cheapest options, and it is free for 30 days.
It is possible for kids to invest their money in individual stocks, save it, or donate it to a charity. Your kids’ savings can be essentially doubled if you match their contributions.
| Fee | $48 per year or $4 per month |
| Additional Card Fee | $5 |
| ATM withdrawal | $2 |
| Card replacement fee | $5 |
| Age requirements | 5 to 17 years old |
| Card type | Debit |
| Card network | Visa |
GoHenry
The Gohenry app is bundled with a Prepaid Debit Card For Kids. Parents can set up an automatic weekly allowance that is transferred to the card. Parents can set weekly spending limits and determine where the card can be used using the app. As well as setting savings and giving goals, the app allows users to track their progress.
A debit card must be used to fund the “Parent Account” set up by parents. Money can be transferred from this account to a child’s account. It is possible to control up to four child accounts from one parent account. There is a fee of $4.99 per child.
| Fee | $4.99 per month |
| ATM withdrawal | $2 |
| Card replacement fee | $5 |
| Age requirements | 6 to 18 years old |
| Card type | Debit |
| Card network | Mastercard |
FamZoo
The FamZoo Prepaid Card is among my favorite Prepaid Debit Card For Kids and families. My encounter with the founder of FamZoo, Bill Dwight, has shown me how he wants to help parents teach their children about money. It provides parents with the tools to help their children manage money.
There is a low-cost prepaid reloadable debit card and an app called FamZoo. There is a monthly fee of $5.99 for up to four prepaid cards. A two-year subscription costs $59.99, which works out to just $2.50 per month. The app and the app combine to offer parents a variety of features, including:
| Age | No Minimum |
| Monthly Fee’s | $5.99/month |
| Best For | Financial tools for mature kids |
Chase First Banking
An easy way for kids to save money and spend it is with this free Prepaid Debit Card For Kids. There are more than 15,000 Chase ATMs and 4,700 Chase branches available for your child to make purchases online, shop in-store, or use a Chase ATM. The card is also accepted everywhere Visa is accepted.
Greenlight is the popular platform used by Chase First Banking for kids. There are some similarities between the two apps. As part of this, chores are assigned, allowances are paid, and there are robust parental controls in place.
A solid free Prepaid Debit Card For Kids does come with a catch — not everyone can get one. You can only create an account if you have a Chase checking account. To deposit money into your kid’s account, you’ll need to link your Chase checking account to theirs.
| Fee | $0 per month |
| ATM transaction fee | $0 |
| Foreign transaction fee | 3% |
| Overdraft fee | $0 |
| Paper statement fee | $6 |
Revolut
A Revolut account is available for people of all ages, and the account provides higher exchange rates than your typical bank account. If you are 13 or older, you can create a Revolut account without a parent’s approval, but if you are 12 or under, the parent must do it for you.
There are several top features like allowances, savings goals, and the ability to send money to other Revolut accounts for free. Savings bonuses and interest rates are not offered with this kids’ account, so the savings goals are only for stashing cash away.
| Fee | $0 per month |
| ATM withdrawal | $0 |
| Card replacement fee | $0 |
| Age requirements | 6 to 17 years old |
| Card type | Prepaid |
| Card network | Mastercard |
How To Get Prepaid Debit Card For Kids?
The first step to getting a Prepaid Debit Card For Kids is to find a provider that offers an account at the child’s current age. Children as young as six can open accounts with some companies, but teenagers are only allowed to open accounts with others.
The following information will be required once you’ve found an account suitable for your needs:
- Name
- Contact information
- Home address
- Birthdate
- Social Security number
- Government-issued ID (such as a driver’s license)
- The child’s information
- Birth certificate of the child (if applicable)
The following steps will help you set up your child’s account and get them a debit card:
- Download the app now
- Invite your child to use the app or add them as a user
- Provide them with a choice of debit card designs (if available)
- Create an account for your child and transfer money there
The delivery of a physical card can be expedited for a fee of $20 or more on some Prepaid Debit Card For Kids. Depending on the account type, virtual cards may be available, or digital debit cards may be available only.
Things To Consider Before Choosing Prepaid Debit Card For Kids
Prepare for the task by familiarizing yourself with parental controls or educational resources that can help improve your child’s financial literacy. You can also reward kids with cash by setting chores or completing specific goals with a Prepaid Debit Card For Kids.
The following factors should also be considered:
Parental Control System
There are a variety of parental controls included in all of the apps here, such as the ability to set up an automatic allowance, lock the debit card, or check your child’s available balance.
Your kids can select the types of purchases they can make, set spending limits, and receive rewards based on their performance. There are many apps that allow you to keep track of your child’s spending and savings, and you can help them manage their money as needed, depending on the app.
Educating Resources
The majority of these cards offer access to educational resources for you and your child. You can teach your kids important skills like budgeting, saving, and investing. Several cards offer spending, saving, credit, and other resources based on age and financial literacy categories.
The Age
There are some Prepaid Debit Card For Kids that allows to sign up until they’re 17 years old; they can open accounts independently at 18. Your child will need to be at least a certain age before he or she can get a debit card, so make sure you confirm the minimum or maximum age.
Qualifications
It is common for debit cards designed for children to require personal information and the use of a shared bank account. A parent must also provide information and download the app to manage their child’s account and transfer money.
An individual’s basic identification information includes:
- An e-mail address.
- Phone number.
- Address.
- Date of birth.
- A parent’s and child’s Social Security number.
Spending Expectations
There are some debit cards that allow parents to set spending and withdrawal limits for their children. Check the limits on your child’s debit card to make sure they don’t exceed them.
Bank Familiarity
It might be possible to get a Prepaid Debit Card For Kids from your favorite bank. When you have an established relationship with a financial institution, it’s generally easier to get new products or better terms.
Pros and Cons of Prepaid Debit Card For Kids
A Prepaid Debit Card For Kids has several pros and cons, some of which are listed below.
The Pros
- You can give your child the feeling of financial independence by providing them with a prepaid debit card. It is possible for them to learn how to manage their money without you relying solely on them.
- It’s easy to obtain prepaid cards since many don’t require credit checks. A child’s account can usually be set up online, and the child can be added as a user. Your bank account must be credited with money before you can use the card.
- A prepaid card doesn’t incur overdraft fees because it isn’t linked to a bank account. The card limits the amount your child can spend, so the risk of falling into a negative balance is much lower.
- Teaching children money management and budgeting can be facilitated with prepaid debit cards. You’ll teach them how to track expenses, save money, and spend wisely.
- There are some prepaid cards that alert parents in real time every time the child makes a purchase (like GoHenry and Greenlight). The card will also be declined if it is not accepted.
- Paid debit cards are easily replaced if lost or stolen, so they are safer than carrying cash. It is usually possible to block the card in your parent app and unblock it if it is found again.
- A regular direct transfer is an easy way to pay your child’s allowance. You can also link allowances to chores or tasks paid by the card.
The Cons
- A card may need to be activated, or you may have to pay to get one. You may also have to pay a monthly maintenance fee. When you use an ATM outside your network and make a deposit with some cards, they may charge you.
- There are some cards that will not work outside of the USA or will charge a fee if you want to use them abroad, unlike GoHenry.
- There are some prepaid card issuers that limit the number of withdrawals, reloads, and spending that you can do in a given period, such as a day or a month.
- There is no way prepaid cards can help your child or teen build a credit history. There is no credit bureau reporting of transactions.
Alternative Bank Accounts for Kids
You may want to consider these other bank accounts for kids if your child is not ready for a debit card or if you have different goals.
A Savings Account For Kids
They teach kids how to save for college or other future expenses by helping them grow their savings over time. You can find great kids’ savings accounts with low fees and high annual percentage yields, no matter what your goal is.
A Custodial Account
It is the parent’s responsibility to manage a custodial account until their child reaches a certain age, typically 18 years old. A child can use some of them to save up for education, whereas others can be used to give them money as adults.
The Credit Card
A teen credit card might be a good option if you want to help your teen establish credit early or offer more responsibility. Of course, you should supervise.
How Can You Teach Kids to Save Money?
Encourage them to be passionate about money! You tend not to get good results when you tell kids what to do! Especially as they get older, we should make sure not just to tell them how to manage, grow, save, and invest money but to actually show them.
If you’re reading a book about money, let them pick it up at their own request. You can listen to podcasts together. Provide them with some financial responsibility.
Children can learn about buying and selling through role-playing games when they are young. You can get them interested in investing in companies that interest them when they are older. You might want to help them learn more about investing in Apple products if they use those products.
Spending money on things that your children want will depend on whether they need them or if they just want them. Understanding needs versus wants at a young age is a great lesson. Those things they want but do not need should be delayed gratification.
FAQ
Are there any banks that offer credit cards for kids?
A prepaid debit or credit card can be purchased with Visa or Mastercard. As long as you have a U.S. bank account, you can use these cards at virtually any bank.
Should I give my child a prepaid credit card?
The answer is yes if you want to raise a child who understands money and how to use a credit card. You can help your teen become a more savvy adult by monitoring their activities and providing insight into financial matters.
How can I tell whether my child’s personal data is compromised?
In most cases, parents do not become aware of a child’s identity theft until their child begins working and filing tax returns.
In spite of the fact that most Prepaid Debit Card For Kids only collects the child’s SSN, you should still watch out for signs of child identity theft, such as debt collection calls, bills, or credit card applications in the name of your child.
There are steps you can take if you suspect identity theft, and Experian offers a free service to check if your child’s Social Security number is associated with any credit accounts.
Will I know where my child uses the prepaid debit card?
Yes, of course. The Prepaid Debit Card For Kids includes alerts that parents receive when their children use them. The app also allows parents to activate and deactivate their child’s card.
Is it possible for teens to use prepaid debit cards online?
That’s right. It is possible to use a Best Prepaid Debit Card For teens anywhere a Visa or MasterCard is accepted. A purchase made online is included in this category.
Conclusion
Kids shouldn’t be expected to use only cash or to borrow their cards constantly. It is a great idea to give your child a prepaid card so that he or she will learn how to handle money in a more confident manner.
Think about what you will use the prepaid debit card for in your family. Does your child need a Prepaid Debit Card For Kids? Look for a card that allows you to access educational tools through the app. Are you looking for a way to limit your kid’s spending? The peace of mind that comes with a flexible parental control card can be priceless.
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