Best debit cards for kids of 2022

Teaching your child how to manage money wisely can be a challenge, but debit cards for kids can be great learning tools.

Like traditional debit cards, these cards can be used to pay for items online or in person at the cash register. But debit cards for kids often include additional features such as parental controls and spending limits, and you can even pay your child an allowance or reward good grades through the debit card’s app.

Debit cards for kids give your child greater control over their finances, and they can be good ways for your child to learn how to budget for the future and track their spending. A debit card also gives children a convenient and easy way to pay for items without needing to ask for cash, while providing safety guardrails to protect them. There are several debit cards out there that are specifically designed for young children and teens.

• Pros and cons of a kids debit card
• How to pick debit cards for kids

Pros and cons of a kids debit card

Debit cards for kids can help teach your children the fundamentals of managing their money. But before you open an account for them, consider the benefits and drawbacks.

Pros

• Parental controls — Unlike standard debit cards and checking accounts, debit cards for kids allow parents to set up usage parameters. You can set spending limits, block entire categories, restrict ATM use and receive alerts whenever the debit card is used.
• Low account minimums — While other bank accounts may require $1,000 or more to open an account, debit cards designed for children usually have very low account minimums. In fact, some allow you to open an account with $0.
• Added benefits — Debit cards for kids may include additional tools and benefits, such as spending trackers and cellphone protection.
• Financial literacy tools — Debit cards that are designed for children and teens usually include financial literacy tools, including educational articles, videos and quizzes.

Cons

• Monthly subscription fees — Many debit cards for kids charge monthly subscription fees. Fees vary by service provider and are dependent on the features available.
• Account maximums may apply — Some debit cards for children have account maximums. If your child would like to save more than the allowed amount, they’ll need a different account.
• Daily or monthly withdraw caps may apply — To ensure children don’t get around parental controls by taking out cash, most debit cards for kids have caps on how much money can be withdrawn at an ATM per day or month. The cap can be as low as $100, which can be inconvenient if your child needs a larger sum of cash to take on a trip or to purchase souvenirs.

How to pick debit cards for kids

Which debit card is best for your children depends on how they’ll use it, how much control you want and what additional features would benefit you. When choosing the best debit cards for kids, we considered the following factors:

• Fees — Fees vary by company. Selecting a debit card that has no fees or low monthly fees can minimize your overall cost.
• Minimum and maximum balances — Since children usually don’t have significant sources of income, accounts that allow kids to open accounts with small amounts of money can be useful.
• Parental controls — A debit card can give a child more independence, but parental controls provide safeguards.
• Mobile app — Mobile apps allow children to track their spending, create budgets and use contactless payments.
• Added features — Additional benefits like chore payments or identity monitoring can be valuable perks.
• Educational content — Debit cards that have educational resources — tailored specifically for children — can help kids learn the basics of managing their money.

As your child starts using the card and managing their own money, be prepared to provide some guidance on budgeting for future goals and desired purchases. Taking the time now to establish a strong financial foundation will set your child up for success.