Using a card to pay online and managing your money with an app has never been more accessible or popular. But is a debit card for kids or teens the best way to teach them about money? And what about cash? There are quite a few myths floating around about kids’ debit cards, so we put together the top 5 myths about debit cards for kids every parent must know and debunked them below.
Myth #1: Cash is a better educational tool than a debit card for kids
While cash can be a great visual tool to teach money ideas, it’s by no means the only way. A better approach might be to blend the two ideas. Teach your kids how cash works, but also show them the purchasing power and safe money access that debit cards for kids can provide. Money is about how cash and cards go hand in hand in the world they’re growing up in. Cards can be great educational tools that prepare your child for their financial future.
Myth #2: You can get a debit card for teens at any bank
If you want to get a debit card for your teen, you might find your bank doesn’t offer one. Each bank sets its own rules for what kind of cards they offer and how old you have to be to qualify. Some may not offer cards for kids. Though some banks may offer teen accounts, as a parent you will not have as much visibility on how your kids are spending, or the ability to set limits. Having a debit card designed to grow with your kids from age 6 to 18 will make it easier to monitor and guide your child’s spending habits.
Myth #3: Debit cards for kids don’t offer perks or rewards
While not all debit cards work the same, we can confidently say that a debit card for kids can come with great rewards, not to mention built-in perks. GoHenry offers teens their own referral link, giving them the opportunity to refer their friends to GoHenry and receive a cash bonus when a friend activates their card. Kids also earn badges for learning real-world financial knowledge through our in-app Money Missions.
Myth #4: It’s hard to teach good spending and saving habits using cards for kids
While cash can be a great way to teach kids the power of saving and spending, it might be easier than you think to teach similar habits with a card. Most teens use apps and computers every day, so use technology to teach your kid money lessons and ways to manage money online in a relatable way.
Myth #5: It’s more difficult to monitor your child’s money habits using a debit card
Before you hand your kid a debit card, you likely want to have some measure of parental controls in place. Luckily, debit cards for kids like GoHenry make it easy to help kids gradually learn how to be responsible. You can rest easy with tools to monitor activity and set spending limits with ease.
Try GoHenry, free for 30 days to explore the benefits that a debit card for kids offers.