We examined over a dozen kids' debit cards before selecting our favorites. The debit card also has strong features that make it easy to use. That means it's up to you, as a parent, to understand how to have these conversations and gradually introduce financial responsibility to your kids. And its not just screen time that raises concerns. Greenlight vs. GoHenry vs. BusyKid vs. FamZoo: Best Debit Card for Kids? Powered by Visa with built-in fraud protection and Zero Liability guarantee for unauthorized charges. How it Works: Once you have a deposit or . Ask yourself: Do they follow through with chore lists? 7 Debit Cards That Pay Cash Back Rewards - Forbes Advisor Still, they can be useful tools that help your child establish preferred financial behaviors, make more responsible money choices and carry fewer risks than cash in pocket. Many financial institutions will allow children of a certain age some as young as 13 to become authorized users on their parents accounts, notes Sterling. Using a debit card or checking account wont improve your childs credit score. 1. 1. Here are some of the pros to consider when opening kids' debit cards: Here are some of the cons to consider when opening kids' debit cards: Many kid's debit cards are available online or through a mobile app. Look out for: FamZoo has multiple plan options, but the most affordable is the 2-year plan. Chase First Banking - Best For No Fee Banking Chase First Banking offers a free debit card for kids between the ages of six and seventeen, with a range of superb features to help them manage money. GoHenry (6+) 5. 10 Best Debit Cards for Kids (And Teens) in 2023 - Well Kept Wallet Credit or Debit: What's Best for Kids? - NerdWallet They could lose the card or become a victim of fraud, which could lead to unauthorized charges on the account. The Fidelity Youth Account is best for teens interested in investing. At other institutions, you may have to get individual plans for each child. 10 Best Free Debit Cards for Kids & Teens [Save, Spend & Earn] She is also a Certified Educator in Personal Finance (CEPF). For example, children will need to get approval before making a debit card purchase or donating to participating charities. When you feel the time is right, allowing your child to use a credit card or debit card can be a good way to build proper spending and credit habits. For example, you should be able to use a debit card for both online purchases and in-store purchases, as well as at ATMs. Axos Bank First Checking easily wins for ATM access. It's a simple way of teaching them to make financial decisions while still being able to monitor and control their usage. But there arent many other perks geared toward rewards and allowances. Most debit cards for kids also provide companion apps that let you set chores or specific goals, which you can reward with an allowance. Lastly, we also reviewed each institution's privacy policy and debit card security features. If youre not set on a comprehensive debit card for your child, here are some other options to consider, depending on their age: Kids debit cards are becoming increasingly popular, with more accounts emerging. The Alliant Credit Union Teen Checking account is best for earning interest. No transaction, reload or withdrawal fees. We may receive compensation from our partners for placement of their products or services. But kids will need a parents help to get one since they cant open a bank account on their own until theyre 18. Finder monitors and updates our site to ensure that what were sharing is clear, honest and current. Although there are exceptions, most prepaid cards dont have age requirements and checking accounts require kids to be at least 13 years old. We've researched each debit card's features and fees so that you can narrow down your options and choose the best debit card for you and your child. Debit Card for Kids and Teens | Greenlight She is based in Los Angeles. FamZoo (all ages) 2. Look out for:To put money into the debit card, you'll need to link an external bank account, debit card, or credit card. Dashia was previously a staff writer at NextAdvisor, where she covered credit cards, taxes, banking B2B payments. Finder makes money from featured partners, but editorial opinions are our own. Among the downsides? However, when you add your child as an authorized user to your credit card, the child is simply piggybacking on your credit history and not building their own credit profile, says Erik Beguin, founder and CEO of Austin Capital Bank. If a card had a special perk like a budgeting app or parental monitoring features, we took that into consideration, too. Personal Finance Insider is Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Insider readers already know and love. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Cons: At 0.10% APY, you can find a better interest rate elsewhere (Capital One's Kids Savings account offers 0.30% APY, but without a debit card). We like that teens will get up to $12 in ATM reimbursements per month and there are no overdraft fees. The decision sharply curtails a policy that has long been a pillar of American higher education. Security you can trust: banking services are provided by Evolve Bank & Trust and FDIC-insured up to $250,000. Consider teaching them financial literacy early to give them a head start on their financial lives. Step reports your credit history to Experian, Equifax, and TransUnion. Some features let you select which types of purchases your kids can make, set spending limits and set rewards for the completion of certain tasks. Student credit cards. Weighing the benefits and risks of a debit card for your child is a balancing act. Choosing to give a child a credit or. Failure to make on-time payments, and carrying unpaid balances, can damage your credit score as a co-signer or authorized user. Your kid can earn an annual percentage yield between 1.00% and 5.00%, depending on the plan. Advertiser Disclosure, We compare the following prepaid cards for kids & teens. Look out for: To use a Copper Card, your child has to be at least 13 years old. No President has fought harder for student debt relief than President Biden, and he's not done yet. It depends on the kids how responsible they are. If you use a GoHenry debit card at an ATM, you'll be charged a fee by GoHenry. We like that teens will get up to $12 in ATM reimbursements per month and there are no overdraft fees. {"menuItems":[{"label":"Our top picks","anchorName":"#our-top-picks"},{"label":"Quick view of the best cards","anchorName":"#quick-view-of-the-best-cards"},{"label":"The best kids' debit cards","anchorName":"#the-best-kids-debit-cards"},{"label":"The best debit cards for teens","anchorName":"#the-best-debit-cards-for-teens"},{"label":"Methodology: How we choose the best cards","anchorName":"#methodology-how-we-choose-the-best-cards"},{"label":"Kids' cards that didn't make the cut","anchorName":"#kids-cards-that-didn-t-make-the-cut"},{"label":"What is a kids' debit card? Step Banking (Best for Building Credit) Available: Sign up here Remember that, even if your child makes mistakes now, its typically not something that would damage their credit, and you can supervise this closely as the parent.. (All plans include cards for up to 5 children) Depending on the rules of the bank or financial institution, parents or guardians may need to be joint account holders, rather than cosigners, for their child to get a debit card, Latham says. Choosing the best debit card for your kids will depend on your needs as a parent and whats best for your child when kickstarting their personal finance journey. Also known as a bank card or check card, a debit card uses funds linked to a checking or savings account to instantly pay for charged transactions. Investing: Step allows the next generation to start investing in stocks & ETFs even before they turn 18 with as little as $1, with no commission fees or monthly subscription fees and a simple and straightforward investing platform. The benefits of your child having a credit card at an appropriate age include: The ability to create responsible spending and financial habits, assuming parents monitor the card carefully. Instant transfers from parent to child accounts are a standout feature. Credit and debit cards are not toys to be trifled with or put into immature hands. Less risk than using cash, which can be lost or stolen. Sophia joined Insider in July 2021 and is an alumna of California State University Fullerton where she studied journalism and minored in political science. Data mining has become a valuable resource for businesses, and financial corporations have shown that they are more than willing to sell customer data. Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 4-year-old Bichon named Tibber. Enter mobile number Get started Learn how we collect and use your information by visiting our Privacy Statement. Copper also has strong financial literacy resources designed specifically for teens. New technology always presents risks -- especially when kids are involved. If you'd like to open a teen checking account with a debit card, you can open an account through your bank's website or at a local branch. Theyll learn how to invest earlier in life, getting a headstart on their financial future while time is on their side with customizable risk tolerance buckets to align their investment strategy with their goals. says you can opt out, but youll need to contact the company directly. She has also written about safety, home automation, technology and fintech. Typically, the parent will need to sign up their child for the card and link an external bank account or debit card. The Mazoola virtual debit card is the best card when it comes to security and your kids' privacy. You also don't need to link a bank account, which may be a requirement at other companies. Though we cant review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. Its worth reiterating that minors are prime targets foridentity theft, mainly because parents dont detect a problem until their child begins working and filingtax returns. The Supreme Court Ends Affirmative Action - The New York Times Also, be aware that a person does not have a credit score until they reach the age of 18. Chase has the biggest branch network in the US it has over 4,800 locations in 48 states. See the best debit cards for kids and teens: Greenlight, GoHenry, BusyKid, Step, Mazoola and more. Debit Cards for Kids | Best Chore App for Kids | BusyKid The best cards for kids come with a suite of features for chores, allowances, savings and more. The mobile app has a unique feature called Money Missions, which teaches kids about different topics in personal finance, like budgeting and investing. Sign up today for a one-month trial. Evan Zimmer BusyKid (5+) 6. Up to $250,000 is secure in your Copper Account through the platform's partner, Evolve Bank & Trust. Why it stands out: If you're looking for a traditional brick-and-mortar bank experience, Chase is an excellent choice. Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Its never too early to start a conversation about money. Best Debit Card for Kids and Teens: 2023 Reviews and Guide All international money transfer services, Methodology: How we choose the best cards, Uniform Transfer to Minor Act (UTMA) accounts, Complying with COPPA, Frequently Asked Questions, Federal Trade Commission, Child Identity Theft: New Evidence Indicates Identity Thieves are Targeting Children for Unused Social Security Numbers, Carnegie Mellon CyLab, 2011, COPPA Safe Harbor Program, Federal Trade Commission, Privacy Statement, Greenlight, September 27, 2022, Childrens Privacy Policy, Step, January 24, 2022, Gohenry US privacy policy V 3.2, GoHenry, July 2022, Copper Privacy Policy, Copper, September 20, 2022, 7 best free debit cards for kids and teens, Finder study reports that a third of parents dont give their kids an allowance, A celebration of piggy banks: Past, present and future, Teenage money management: 8 ways to teach your teen. Parents and kids will manage the card through the company's mobile app. Get the inside scoop on todays biggest stories in business, from Wall Street to Silicon Valley delivered daily. teaching financial responsibility to children, are your children ready for a credit card, Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009, A Glut of Made-in-China Plastic Will Dent Oils Growth Machine, UK's Hunt to detail plans to steer pensions into growth investment, Biden due to meet King Charles, PM Sunak during brief UK visit, UPDATE 2-Amazon workers at UK warehouse to strike during Prime Day event, Pemex Loses Nearly 450,000 Barrels of Oil After Deadly Blast. Pros and Cons The Head-to-Head Comparison Best Debit Card for Kids Features Pricing and Fees Safety and Security Parental Controls Customer Complaints Copper is part of the Allpoint ATM network, where you'll have access to over 55,000 surcharge-free ATMs. Plans range from $5 to $15. In 2020, JP Morgan Chase & Co.paid the Department of Justice $920 millionwhen charged with wrongful trading. Your child can use the account to send money to friends and vendors, and to pay bills. When paying by the month, membership costs $5.99 monthly. Jelli lets teens separate their money into different budget categories and doesnt charge a monthly fee. Explore 8 ways to teach your teen healthy financial habits. 9 Best Prepaid Debit Cards For Minors (July 2023) - CardRates.com Parents: Are you looking for a way to teach your kids about managing money? Best Debit Cards For Kids And Parents - The College Investor Finder.com LLC. Different apps provide varying degrees of control, but most will let you keep tabs on your childs spending and saving, and help them manage their money as needed. 11 Best Debit Cards for Kids & Teens in June 2023 | finder.com Greenlight Kids' Debit Card 2. What are the best debit cards for your kids to spend safely? While we love that Jassby lets kids earn reward points through its financial literacy program that they can redeem in its in-app marketplace at retailers like Starbucks and Nintendo, its monthly fee didnt offer enough features to justify it. Talk with a financial professional if you're not sure. If your child is underage, you may also be able to add them as an authorized user on your own credit card account. This account teaches financial literacy with quizzes, lets parents reward kids with $1 for each question they answer correctly and comes with an investing feature. Thumb through a list of ready-made lessons and games to teach kids about money. Have they begun to correlate current actions to future outcomes? Axos First Checking: Axos has one of the best debit cards for teens with its Axos First Checking account. Infinity: $14.98/mo. 1. Why it stands out: With the Copper Debit Card, you won't need to worry about monthly service fees, overdraft fees, or minimum balance fees. Best overall: Alliant Credit Union Kids Savings Account. Chase First Banking | Free Checking, Debit Card for Kids. They prioritize teaching kids about finances while they use real money and tools. Greenlight Prepaid Mastercard, All ages Monthly Fee: $4.99 (for up to 5 cards) Reload Fee: $0 ATM Fee: No free ATMs or fee reimbursement included Starting off the list is our pick as the best option for kids' debit cards.