Teaching Financial Literacy to Kids: The Role of Debit Cards
In today’s fast-paced world, teaching financial literacy to children is more important than ever. One effective way to do this is by introducing them to debit cards designed specifically for kids and teens. These cards are tailored to help young people learn how to manage money, set financial goals, and develop healthy spending habits. The best debit cards for kids come with user-friendly mobile banking apps, parental control features, and educational tools to make learning about money fun and engaging.
For parents looking to choose the right debit card for their child, there are several factors to consider. These include low fees, ease of use, and additional features such as savings goals, chore tracking, and financial literacy resources. Below, we explore some of the top debit cards for kids, highlighting their unique features and benefits, to help you make an informed decision.
Best Overall Debit Card: FamZoo Prepaid Debit Card
The FamZoo Prepaid Debit Card is a standout option for families, especially those with multiple children. It offers flexibility and ease of use, with up to four free debit cards included in one subscription. Parents can assign chores, set weekly allowances, and monitor spending through the app or even via text message. The card is prepaid, so there’s no risk of overdraft, and it doesn’t require a bank account to set up.
FamZoo also provides access to over 30,000 ATMs with no fees and allows cash reloads at participating retailers like Green Dot locations. The subscription plans vary, with options ranging from a monthly fee of $5.99 to a two-year plan at $59.99, making it budget-friendly for long-term use. This card is ideal for families who want a hassle-free way to teach financial responsibility without the need for a traditional bank account.
Best for Strong Parental Monitoring: BusyKid Spend Card
For parents who want robust monitoring tools, the BusyKid Spend Card is an excellent choice. Designed for children aged 5 to 17, this card allows parents to set spending limits, lock transfers between saving and spending categories, and approve purchases before they are made. It also offers features like assigning chores and setting allowances, making it a great tool for teaching the value of earning money.
BusyKid’s mobile app is highly rated, and the card offers access to 55,000 free ATMs through the Allpoint network. The monthly service fee is $3.99, or parents can opt for an annual fee of $38.99 for greater savings. While it doesn’t allow direct cash deposits, the card is linked to a parent’s bank account, making it easy to transfer funds. The BusyKid Spend Card strikes a balance between parental control and giving kids the freedom to make financial decisions.
Best for Traditional Banking Experience: Chase First Banking℠ Account
For families who prefer a traditional banking experience, the Chase First Banking℠ Account is a top choice. This account comes with a debit card and no monthly service fees or overdraft charges, making it an excellent option for parents who want to avoid unexpected costs. The account includes parental monitoring tools, such as setting spending limits and receiving alerts, and offers access to over 16,000 free ATMs across the U.S.
Chase First Banking also provides savings tools to help kids set financial goals and develop healthy spending habits. To open the account, parents must already have a Chase checking account, which may be a minor inconvenience for some. However, the benefits of a trusted brick-and-mortar bank and its extensive network make this debit card a solid choice for teaching kids about money management.
Best for Financial Literacy Education: Acorns Early (formerly GoHenry)
Acorns Early, formerly known as GoHenry, is designed to help kids learn about personal finance through interactive lessons and real-world experience. The mobile app offers three levels of financial literacy lessons, catering to different age groups and skill levels. Younger children can learn money basics, while older kids explore topics like investing and budgeting.
The card also allows parents to assign chores, set allowances, and monitor spending. A unique feature of Acorns Early is the ability to pay “interest” on savings, helping kids understand how earning interest works. The card offers access to over 55,000 ATMs and is FDIC-insured for security. While there is no option to deposit cash directly, linking an external bank account makes it easy to fund the card. Acorns Early is a great choice for parents who prioritize financial education.
Best Interest-Earning Account: Greenlight Account
The Greenlight Account stands out for its ability to earn interest and provide hands-on experience with financial tools like cash back and investing. This prepaid debit card offers up to 5.00% APY on savings, depending on the plan, and allows kids to earn 1% cash back on purchases with higher-tier plans. Parents can set spending limits, monitor transactions, and teach their children about budgeting and investing through the app.
Greenlight also offers a family-friendly design, supporting up to five debit cards under one account. While there is no free plan, the initial month is free, and subsequent plans start at $4.99. The card is FDIC-insured and offers access to a wide network of ATMs. Greenlight is an excellent option for parents who want their children to gain practical experience with advanced financial tools.
Choosing the Right Debit Card for Your Child
When selecting a debit card for your child, consider their age, maturity, and your own financial goals. Look for cards with low fees, strong parental controls, and educational features that align with your child’s learning needs. Debit cards like FamZoo, BusyKid, Chase First Banking, Acorns Early, and Greenlight offer a range of tools to help your child develop financial independence and literacy.
By involving your child in conversations about money and using these debit cards as a teaching tool, you can help them build the skills they need to manage their finances confidently in the future. Whether you prioritize traditional banking, financial education, or parental monitoring, there’s a debit card designed to meet your family’s needs.
In conclusion, debit cards for kids are more than just a way to spend money—they’re a powerful tool for teaching financial literacy and responsibility. By choosing the right card and engaging with your child throughout the process, you can help them develop the skills they need to thrive in a world where money management is essential.
