Prepaid debit cards are a great way for parents to teach their children about money. They work just like regular debit cards, but the funds are preloaded onto the card instead of being drawn from a current or savings account. In this blog post, we will discuss how prepaid debit cards work and give you a guide to choosing the right card for your child.
What is a prepaid debit card?
When you open a bank account, the bank will give you a debit card that is linked to your account. This means that you can use the card to withdraw cash or make purchases anywhere that accepts debit cards.
A prepaid debit card is a different type of debit card. With a prepaid debit card, you load money onto the card in advance. This can be done by transferring money from your bank account or by buying a reloadable card from a retailer. Once the money is on the card, you can use it like a regular debit card, and reload it as you wish.
Prepaid debit cards are a good option for people who don't have access to a traditional bank account or who want to control their spending. It's also a great option for kids, as they can safely use the card without the worry of overspending.
Plus, with GoHenry, the card is linked to a mobile app, where parents can set spending limits, track transactions, and add money to the card.
Where can you use prepaid debit cards?
Prepaid debit cards can be used anywhere that accepts this type of payment, including online, in stores, and at ATMs. However, as the GoHenry prepaid debit card is for kids, there are some restrictions in place to help keep them safe while they learn about money. For example, merchants such as casinos, adult entertainment venues, and alcohol and tobacco retailers are blocked. And, with GoHenry's integrated parental controls you can set spending rules and limits and choose to limit whether your child can spend in-store or online, or withdraw cash from an ATM.
What are the benefits of using a prepaid debit card?
There are several benefits of using a prepaid debit card, for both parents and kids. For parents, it can be a convenient way to pay pocket money without having to worry about finding cash. It is also a great tool for teaching financial responsibility as kids can only spend what is loaded onto the card. With parental controls in place, you can monitor and control your child's spending and transactions.
For kids, using a prepaid debit card can help them to learn how to budget and manage their money, which will teach them good financial habits that will help them with money management in the long term. It's also a safe and convenient way to pay for things, both online and in person.
If you're looking for a way to give your child an allowance, teach them about financial responsibility and set them up for financial success in their lives, a prepaid debit card is a great option!
How old do you need to be to get a prepaid debit card?
So, at what age can you get a debit card? Most prepaid debit cards have a minimum age requirement of 11 years old. However, there are some cards specifically for kids, like the GoHenry prepaid debit card. This card is available for kids aged six and up. This is because it comes with a number of parental controls, and constitutes a safe way to teach kids about money management in a safe and controlled environment.
Whether or not your child is ready to handle the responsibility that comes with a debit card is down to the individual child. There are certain signs your child is ready for a prepaid debit card. It's worth noting that being able to give your children a prepaid debit card from a young age can help them to develop good financial habits that will last a lifetime. So, even though it may feel daunting at first, it's definitely worth considering.
Do prepaid debit cards have parental controls?
Standard prepaid debit cards do not have parental controls, and many high street banks and other financial institutions are in fact not allowed to offer prepaid debit cards to minors.
However, the GoHenry prepaid debit card comes with a number of parental controls to help you manage your child's money. You can set spending limits, block certain types of transactions and even receive notifications when your child spends. You can also freeze and unfreeze the card at any time, as well as set-up dual parenting controls so that both parents can keep track of and manage their child's spending.
In short, the GoHenry prepaid debit card gives you all the control you need to help your child manage their money responsibly and safely.
How can you get a prepaid debit card for kids?
The GoHenry prepaid debit card is available for kids aged six and up. You can sign up for an account online, and then add your child as a user. Once you have activated the card, you can load money onto it from your own bank account.
Your child can then use the card to make purchases anywhere that accepts debit card payments. They can also use it to withdraw cash from ATMs. You can monitor their spending online, and set limits on how much they can spend each day.
Learn more about the GoHenry kids debit card today!