Debit Card for Kids: Is Your Child Set Up for Financial Responsibility?

“Should I let my 13-year-old get a debit card?” The question can be a source of conflict for parents of young teens. You want to let your kids start to spread their financial wings, but a debit card is a huge responsibility. What happens if they lose their card? Or what if they spend all of their money? Getting a debit card for kids shouldn’t be taken lightly, so we’re giving you the top signs your child is ready to get a debit card.

6 Signs Your Child is Ready for a Debit Card

Mature Enough for Financial Independence

If your child has expressed an interest in learning about finances or perhaps wants more financial independence, they may be ready for a debit card. After all, they will leave the nest someday. It’s better to give them financial leniency while they’re under your roof.

Has a Reliable Source of Income

Does your child work a part-time job or have an online business? If so, they may be ready to have a debit card. With your help, they can deposit money into their checking account. And if they have a source of income, they may be more careful with how they spend their money.

Does Not Lose Their Money

When your child receives money for their birthday or as a holiday gift, what do they do with it? If they toss the envelopes on a dresser and the money falls out, it may end up in the garbage or their brother or sister’s hands! If your child treats money with respect, it may be time for them to have their own checking account and debit card.

Watches Their Spending

There’s nothing wrong with spending money as long as more of it is coming in every month. However, if your child spends the money in less than 2.5 seconds, they may not be ready for the responsibility of a debit card. But if they don’t go overboard with their spending, you may consider allowing them to have more financial independence.

Likes to Save Their Money

Saving money is a good thing. Why? Because unexpected things happen in life, and it’s better to have more money than not enough. If your child understands this, they may be ready to have a debit card. They may ask to have multiple savings accounts so that they can save money for specific reasons. For example, college, car, rainy day, etc. Having multiple bank accounts isn’t a bad idea.

Is Excited to Learn about Finances

If your child is interested in getting a financial education that can help set them up for success now and in the future, they may be ready for a debit card. After all, it will be their responsibility to make sure they have money in their checking account to cover their expenses, such as clothing, gas money, and more. If they don’t have enough funds, they may ask you for some money. And if you really want to teach your kids about finances, you could loan them the money, without interest, of course!

Is Your Child Ready for Financial Independence?

Can a 13- or 14-year old have a debit card? That’s up to you as you know your child best. But we’re here to help you raise financially-savvy kids, which is why we offer Club Ignite, the savings account exclusively for teens.

It’s important to encourage your child to develop good financial habits. The money management lessons they learn now will stay with them as they get older. There’s nothing wrong with a debit card for kids as long as your child is ready for the responsibility that comes with it.

Did you enjoy this post? Share it and click here to stay up to date with FFCCU!

Posted In: Ignite, Tips For Managing Finances