Research shows kids' financial habits have already started by age 7. So, setting them up with a prepaid debit card could steer them towards a more financially secure future.
Much of our lives revolve around money, whether we like to admit it or not. We like to think our children will have a financially secure future, and with an understanding of money, our kids will grow into adults who can budget, save and be financially responsible. With that in mind, setting your child up with a prepaid debit card makes good financial sense.
We have gathered some useful information to help you decide whether a prepaid debit card is right for your child and how to get one.
What do I need to get a prepaid debit card for my child?
Signing up for a children’s prepaid debit card with GoHenry only takes a few minutes.
GoHenry will carry out a widely-used check called Know Your Customer (KYC) when you sign up. Your details are checked against several public databases, such as the electoral roll, the telephone landline database and Experian. This doesn’t impact your credit score and is not a credit check, although it will show a trace on your credit history.
If you’re not registered on these databases, perhaps your phone number is ex-directory and you are only on the private electoral database, then we will contact you to ask you to provide us with either your full driving licence or two of the following documents:
- UK passport
- Council tax bill (current year)
- Bank Statement (last 3 months)
- Utility bill (gas, water or electric from the last 3 months)
- Landline bill (from the last three months)
As soon as we have these documents and when we can verify your identity, you can complete the sign-up process for GoHenry.
Your child's prepaid debit card is then sent to your home address. You and your child will both need access to a device such as a tablet or a phone, so that you can manage the account.
How can I open an account for a prepaid debit card for my child?
It couldn't be easier. Get started here, and you can register to join.
After that, you register your child, including their name and date of birth.
You then have the option of customising the debit card. There are a variety of options your child can choose. These customised cards come at a small cost of £4.99, or you can opt for the regular card, which is free.
The card arrives between 5-7 days after you have opened the account. Then, you will need to activate both the parent and child accounts. This involves logging into your GoHenry account and creating a linked account for your child.
At this point, you can manage pocket money payments, monitor spending and set up tasks. You will also be given your child's login details and card PIN.
Once you have added some money to your parent account, you can organise regular payments to your child's account. You can also send one-off payments into your child's account when needed.
Finally, you can set spending rules and limits from the parent app, including how the card can be used. You can top up the account with additional funds and block and unblock the card. These decisions can be changed at any point by clicking on the 'card' page.
How old does my child have to be to open an account?
GoHenry accounts can be set up for children and teens between 6 and 18. If your child simply can't wait, you can create an account one month before their sixth birthday. They'll then receive their card in time for the big day.
One of the advantages of GoHenry is that it grows with your child, meaning that older teens can have wages from part-time jobs paid straight into their account using the BACS system.
What features do you get with a child’s prepaid debit card?
The prepaid debit card is an increasingly popular way of providing kids with some financial responsibility with a parent's watchful eye as security.
The GoHenry prepaid card features include:
- Ability to use the card in-store, online and at ATMs
- Receive payments from friends and family via Giftlinks
- Set tasks within the app and kids get paid when they’re done
- Set up weekly pocket money transfers
- Access to in-app Money Missions to help kids build financial literacy
- Pre-paid 'top-up' card, so there's no risk of debt or overdraft
- Real-time spending notifications
- Set savings goals and track savings in the app
- Decide where and how much kids can spend
- GoHenry blocks unsafe spending categories
- Fingerprint and facial recognition
- Chip and PIN-protected transactions
- Secure PIN recovery in the app
- Bank-level encryption
- Reliable card replacement
- Easily block and unblock card
How much does it cost to set up a prepaid debit card for my child?
Subscription charges vary, depending on the provider you use. However, GoHenry is £2.99 a month, with the first month being completely free. You can either order a customised card for £4.99 or choose a regular card for free.
As parents, we spend much of our time ensuring our children grow up safely and securely. If you decide to opt for a prepaid debit card, you enable your children to start participating in the digital economy and supporting them in their financial education.