At What Age Should a Child Get a Debit Card?
Getting your child their first debit card can bring mixed emotions. A debit card is a tool that will help them learn to manage their money, but you might wonder if they're ready to handle the responsibility. Learn about the controls parents or guardians have for their children’s accounts and how you can recognize when your child is ready for their first debit card.
How Do You Know if a Child is Ready for a Debit Card?
There is no one-size-fits-all answer to when a child should get their first debit card. Here are some signs that your child may be ready:
- Earning Their Own Money: If your child has a part-time job or earns money through babysitting, yard work, or other activities, a debit card can help them manage their earnings responsibly.
- Demonstrating Responsibility: If your child is already managing an allowance or making smart spending choices, they may be ready to handle a debit card.
- Increasing Independence: As children grow older, they may need more financial independence for school activities, outings with friends, or online purchases.
Benefits of Having a Debit Card at an Early Age
There are many benefits to getting a debit card for your child:
- If your child receives an allowance, you can give it to them in a more convenient way. Instead of stopping at an ATM or giving them an IOU, simply transfer the money to the checking account tied to their card.
- Parental controls allow you to provide more oversight on your child's spending than with cash. As the joint owner of the card, you can log in to online banking to see the card activity and sign up for account alerts to get notifications about their spending.
- Debit cards can be more secure to carry around than cash. If your child loses cash, they won’t be able to get it back. Debit cards come with protections against theft, plus you can log in to online banking and lock/unlock their card if it’s lost or stolen.
- Set boundaries around their spending, while teaching them what responsible money management looks like.
Types of Accounts for Minors
In most states, minors under the age of 18 can’t open a bank account in their own name. However, there are options that allow children to use debit cards under the supervision of a parent or guardian:
- Joint Accounts: A parent or guardian can open a joint account with their child. This gives both parties access to the account, including a debit card for the child.
- Custodial Accounts: These accounts are opened by a parent or guardian on behalf of the child. The adult retains control over the account until the child reaches a specified age, typically 18 or 21.
- Prepaid Debit Cards: These cards can be an excellent option for younger children, as they often have no minimum age requirement. Parents can load funds onto the card, set spending limits, and monitor transactions.
- Teen Checking Accounts: Some banks offer specialized accounts for teenagers, usually between the ages of 13 and 17. These accounts often include a debit card and provide tools for financial education.
How KeyBank Can Help
Only you can determine when your child is ready for their first debit card, and what solution works best. For further insight, learn about the minor account options offered by KeyBank:
- KeyBank Hassle-Free Account®: The parent or guardian serves as the account owner, while children aged 13 and up can be designated as Authorized Minor Users. With the KeyBank Hassle-Free Account, you can transfer money to the card through online banking, and even load the debit card onto a digital wallet so your child can use their phone to make payments.
- Joint Checking Account with a Debit Card: You can jointly open a checking account with a child under the age of 18 and give them a debit card. Learn more about joint bank accounts from KeyBank.
- Student Checking Account with a Debit Card: Many banks offer child or student checking accounts with access to a debit card when a child reaches age 16. KeyBank recommends two options for a student checking account.
If you want to give your child a debit card at a younger age, you may prefer an account with greater parental control, such as a reloadable prepaid card. As your child ages, you can give them more freedom with a joint or student checking account.
Money Conversations to Have with Your Child
Use these money conversation topics to further your child's financial education and help establish clear boundaries around spending.
- Explain where the card's money is coming from. Make sure they understand whether it’s coming from a joint account or their own account, that their debit card is tied to a checking account, and the difference between a checking account and a savings account.
- Establish an appropriate spending threshold. How much money is your child allowed to spend with their debit card without having to ask you first? This will give you some control over their account balance and teach responsible spending.
- Discuss overdraft fees, how they occur, and how your child can avoid getting them. Does the account your child has access to allow overdrafts? Be sure your child understands what happens if there is not enough money in their account.
By giving your child their first debit card, setting expectations, and having regular check-ins about spending or other questions they may have, you can open up a world of financial learning.