Debit cards for kids

[suchislife2]

http://money.ninemsn.com.au/article.aspx?id=797296

So in this article a mother/father talks about her 15 year old kid wanting a debit card. She says no, that she needs to feel the money and know the value of a dollar before she can have one.

I tend to agree, although I DID have a card as a kid but I was so scared to use it because of what would happen to me that it basically stayed in my wallet till I got rid of it and got my own at 18.

So anyways, what's your opinion? Should kids be able to access a debit card? Or should they be made to understand money and it's value first?

[Greenday]

I fail to understand why, at such a young age, teenagers need a debit card. Cash does perfectly fine and you don't generally ever buy anything that you need a debit card for instead of cash. I got a debit card when I was 18 before going to college. But even then, the only times I use it are for large purchases, when I absolutely need something and I don't have cash, or for gas.

[BroomJockey]

Frankly, if you take the time and talk to your kid, and work with the bank, there shouldn't be a difference in the child's mind between a debit card and cash. I know a lot of people who go "I gotta keep cash on hand, so I can see how much I have left. Otherwise, I just go spending crazy!" That's not good. By the same token, I grew up that any cash I had was my money, and I could spend it however I wanted. That's not the best either. Ideally, you want your kid to have them completely equal in their mind. Because they are equal. They both represent the finite resource you have to use to exchange for goods and services. Money doesn't magically change just because it's now represented by plastic.

So, yeah, if they want it, take time, sit them down, explain it, and then slap the lowest daily limits on that card that the bank will allow, to make sure they don't go nuts.

[Lace Neil Singer]

I got a debit card at fifteen. *shrugs* I don't really see why it's so wrong, provided the parents teach their child the value of money, for example, by having them work for their money in some way. As soon as I was old enough, I got a paper round so that I could get in extra cash, and washed cars for more money. I got my debit card and opened a bank account so I could have somewhere to stash any spare cash. I still have that account now, lol.

[HYHYBT]

I don't quite understand the distinction either; a debit card is simply however much money you have in the bank; you could go to a teller and withdraw it in person instead if you preferred. Also, and I admit I may be confused about the matter since I had no internet access until adulthood, but I see no reason that someone allowed to make purchases in person should not also be able to order online, which requires a card of some type.

[kiwi]

I had a debit card as soon as they came out, my mum used to hold on to it for me unless I went out with my friends. As soon as I got a job I kept it in my wallet (15 years old) as my pay went into that account.

I wouldn't give them a credit card though.

[Boozy]

Kids should start managing their money responsibly with debit cards as early as possible, in my opinion.

By the time today's kids are adults with kids of their own, we'll be nearly a cash-less society. Parents should teach their kids to use the technology that they'll need in their future lives. It may be different than what mom and dad are used to, but that's the way it goes.

If you want to have a safe guard to prevent kids from overspending (because they will make mistakes while learning), they just need two accounts. One savings, one chequing, and only the chequing linked to the debit card.

[Plaidman]

I dealt with kids with debit cards. I rarely see INSUFFICENT BALANCE, which only comes up when no money is in the account. I have no idea, nor do I ask, what they do for their money.



As long as the teen, (or preteen as I've seen) has money, I don't really care. But I've dealt with a few that didnt have money for what they werte buying, and they were confused.

Like totally confused. I tried to explain, but they didnt undertstand. Those that do understand, yay. If not, I don't have any patence for.

[DesignFox]

I think that is between the child and their parents. If the parents think their child is ready for the responsiblity, I don't see a problem with it. They have to learn eventually, and really, the sooner they can handle it, the better.

I believe that the parents should have limits, so the kids CAN learn responsibility.

I don't agree with giving kids a credit/debit card and giving them unlimited funding. Although, I guess then it could be argued that a parent who would do that would spoil the kid rotten whether it was paper or plastic form.

[tropicsgoddess]

I think it would be best for them to know the value of a dollar and how money works before getting a debit card in their hands. Other than that it's a great thing for a teen to have since not only they can keep track of it, but there are some where the parents can also keep track of and/or have some control on the teen's spending as well (i.e. Visa Buxx). The debit cards don't build credit, but somewhere down the road the teen can be taught on how the credit system works before being of age and getting their own credit card in the future to keep them from going through the credit card pitfalls.

[BookstoreEscapee]

I think a debit card is fine (I didn't have one until I went to college and got my first checking account, but then that was in the mid-90s and debit cards weren't as ubiquitous as they are now; and at first it was only a check card, only useable at an ATM). I didn't get a credit card until my junior year. It's really between the parents and the kid to decide if the kid can handle the responsibility. If possible, the account should be restricted to spending only what's in the account (in other words, the account can't be overdrafted).

[muses_nightmare]

For a lot of banks you need a debit card to access anything. I'm sure there are ways around that at some banks, but generally things are quicker and easier with a debit card. and I do think kids should have a bank account as early as possible, for savings. To help them learn about that kind of stuff.

I had one when I was a teenager, I didn't go spending crazy. If kids know that it's actual money they're spending then I don't see a problem.

Credit cards are another issue all together though...