When To Get Your Child A Bank Account And Debit Card

Parenting is a lot different now than it used to be, and it’s a lot more complicated. After all, parents in the 1970s and 1980s didn’t have to figure out when it was appropriate to give their children their own phone. They were also able to raise their children without the internet’s impact, let alone social media platforms such as Instagram and TikTok. Parents may be able to get by without providing their children with a debit card. We didn’t go anywhere much as kids, and we certainly didn’t require a credit card to make internet transactions.
Fast forward to now, and parents have a lot more choices, particularly when it comes to how we teach our children about money and how to manage it. Many professionals have strong opinions regarding when a child should open their own bank account and when most children are ready for their own debit card.

A young girl is shown learning about money from her granddad.
Banking Has Never Been the Same Since Technology Arrived.
Catherine Alford, co-founder of Millennial Homeowner and author of Mom’s Got Money, is a mother of twins. She plans to create bank accounts for her children when they reach the age of ten, but she believes that parents should be aware of how banking has changed so that they may assist educate their children even before that.
Alford adds out that when she was a kid, her mother gave her checks to bring to the book fair, but nowadays, moms Venmo each other at garage sales. Remember how, just a few decades ago, most individuals received a paper paycheck in an envelope? Most people nowadays would rather have their money directly deposited into their bank account than receive a paper check. Our parents used to balance their checkbooks once a week at their kitchen table, but it’s no longer necessary because online banking shows you everything you need to know.
The bottom line: Technology has altered the way we make and track transactions, and children must understand how things work.
“It’s critical for children to understand how to utilize financial products at an early age, as well as the benefits of doing so and how to do so securely,” says Alford.
ADDITIONAL INFORMATION FOR YOU
When Is It Time For Your Child To Open A Bank Account?
While the timing of opening a bank account for a child can be determined by factors such as their overall maturity, Brian Stivers, investment advisor and founder of Stivers Financial Services in Knoxville, TN, advises that you open a bank account for your child as soon as they begin receiving money they can save.
“You should even encourage loved ones to make contributions into your child’s bank account instead of buying toys,” Stivers advises. “As soon as your child is old enough to understand, take them to the bank and let them make their own deposits.”
By far, he believes, this is one of the most valuable presents you can give your child, because learning to save can mean a brighter future for them in the future.
Taylor Burton, cofounder of Till, an app and debit card that allows kids and parents to cooperate on better spending decisions, feels that between the ages of 8 and 12, kids are ready to dive into banking.
Giving children a bank account and/or debit card is a good idea, according to Burton, since “kids learn by doing,” and having a debit card allows children to participate in and practice real-world purchasing behavior.
“What’s important is that it’s backed up by dialogues and structure from their family and wider community,” he explains.
Many parents are apprehensive about having “the money talk,” but giving a child a debit card and talking to them about their spending and saving habits on a daily basis is a terrific approach to alleviate the stress of parenting a child who is financially literate.
Should Children Be Paid An Allowance?
Some family banking systems also allow you to digitally apply allowance amounts to a child’s account. Greenlight Kids Debit Cards, for example, allow parents to set up automatic allowance contributions and digital chore schedules.
This forces parents to make yet another decision. Whether they decide to give their children an allowance on their debit cards or in cash, it’s critical to establish limits for when and how much they receive, as well as whether they must first achieve certain conditions.
Allowances, according to Alford, provide a chance to connect the concepts of work and money.
“My goal is to create productive, self-sufficient children,” she says, adding that she wants them to understand that they must work in order to acquire the things they desire.
Alford only gives her twins money if they complete jobs that aren’t part of their daily duties as family members, such as carrying their dishes to the sink and collecting up their own toys.
“Other tasks assist me, such as having them fold and put away their own laundry, which they are compensated for,” she explains. This has taught her children responsibility as well as the fact that “money does not fall from the sky.”
What To Look Out For When Banking With Children
Giving children a bank account or a debit card, according to Alford, necessitates teaching them how to spot evil actors.
“When it comes to banking, there are hidden hazards like hackers,” Alford says. As a result, children must learn how to safeguard their personal information in order to avoid future identity theft and fraud.
Kids, for example, should understand how to avoid falling prey to scammers and how to safeguard their log-in credentials and passwords at all times. Kids who have a debit card should be aware that they should never give out their account information to anyone who asks, including another adult.
However, too much emphasis on money, according to Stivers, might be a problem.
“You have to be careful not to focus on money so much that you lose sight of other vital areas of life like relationships, relaxation, and generosity,” he warns. “As a result, it’s critical to get to know your children and to keep bringing them back to a healthy balance in terms of saving and spending.”
It’s also crucial, he believes, to avoid forcing your children to grow up too quickly. While it is crucial for children to learn the fundamentals of banking, they should not be given too much responsibility too soon./nRead More