Parents: 4 Reasons Your Kids Should Use Debit Cards!

It’s a pretty big deal when you first trust your kids with money in the form of cash for everyday spending. Trusting them, to spend it wisely and not lose it is a common worry of most parents. Until recently, cash has been pretty much the only option for younger people. Luckily, there are now more and more challenger banks, which are operated solely from your smartphone. Naturally these services have evolved and now there are many digital banks that offer a separate banking product and kids debit cards built into the main app with full parental control.

The ease of setup (often in minutes direct from your phone) makes this a very attractive option for parents with young children. Previously, such products did exist but they required waiting in line at a bank branch and dealing with time consuming paperwork in exchange for a complicated old-fashioned bank account. Nowadays, its as easy as installing an app, filling out a form, verifying your identity and then waiting for your kids debit card to arrive by mail. Oh and another cool feature is that kids debit cards can often be customised.

If you still aren’t sure that your child is ready to make the leap from cash to card, then take a look at the 5 reasons that are often overlooked by most parents:

1. They ask for cash often for everyday spending.

When kids ask for cash they have no trail of their spending and find it difficult to keep track. As this is what later leads to understanding the foundations of budgeting, being able to track spend is a crucial aspect of money management. With a kids debit card such as Greenlight or goHenry, managing money and seeing where spend is going is made incredibly easy with inbuilt money management tools. These are typically laid out in a very simple interface so that your kids can quickly grasp the importance of keeping tabs on their spend.

2. They get pocket money or an allowance paid weekly or monthly.

As soon as kids start earning their own money, whether this is through chores, birthday gifts or even lunch money, they will need somewhere to keep it safe. Sure, piggy banks or shoe boxes do the job but why not keep track of this with their own childs bank account and debit card? For US based parents, Greenlight is a good option to explore. (You can read our full Greenlight Card Review here.) For UK based parents, goHenry is an option worth exploring. (Read our full goHenry Review and see what you think.)

3. They can’t grasp the importance of saving.

Once kids start learning how to spend money, the next logical step is to learn how important saving money can be in life. Rather than constantly lecturing them about this subject, why not let them practice and learn in real life? Many kids debit cards come with saving features where children are able to choose how much to “put away” for special purchases. They can even use features that automatically round up expenditure and save automatically. In summary, there are an array of savings features built into parent controlled, children’s bank accounts!

4: They are starting to make their own purchases.

Once your child starts to actively spend money themselves then, it’s worth considering the parental limits offered on kids debit cards. For example, you can set limits to ensure they are only spending at certain shops (physical or online). You could even set limits for things like gas/petrol when they start to drive. There are a whole host of parental controls to give you piece of mind that your kids are only spending within their means and at safe, reputable vendors.

We hope this list of reasons has been useful! See more options for kids debit cards on our homepage!