As your children grow into adults, it’s up to you to teach them manners, right from wrong, patience, how to read. The list goes on and on. One thing that may slip through the cracks, however, is the importance of budgeting. Whether we want it to or not, money plays a crucial daily role in everyone’s lives, and it’s best to be prepared early.

That’s why lots of parents are switching out piggy banks for debit cards. Kid debit cards to be exact.  After all, in this day and age, cash is out and money is mostly just numbers on a computer screen. Might as well teach your kids money management skills that are relevant.

In this article, we’re going to cover how debit cards for kids work and why they’re so important in the development of a modern child’s financial literacy. Debit cards for children have actually been around since the mid-2000s, but as time has progressed, and as your children enter the digital age, it’s imperative you teach them how to use and budget with digital money, not just with cash.

Answers to Your Top Questions about Debit Cards for Kids

How can I get my kid a debit card?

There aren’t a lot of banks willing to give full financial freedom to tweens and teens, and we don’t blame them. But there are some new companies (as well as some legacy banks as well) that offer parent-supervised children's debit cards. Opening an account for your child (think between the ages of six and 17) is really simple when you visit sites like  Greenlight or gohenry. You can open an account in minutes. Getting a debit card for kids is as easy as getting one for an adult. The hardest part is waiting six to 10 business days for the physical card to come in the mail.

How do I put money on a debit card for kids?

Once you have your child’s debit card set up, you’re in control. Cards can be funded by connecting your bank account or debit card to your child’s. Debit cards like Greenlight offer direct deposit, and there are also apps that allow you to transfer money directly from your bank account to the child’s debit card. From there, you can decide how much your kid can spend on meals, shopping, Roblox, or digital subscriptions. 

Do debit cards for kids have fees?

Many children's debit card companies are good about giving you a free trial, but after that, you’ll have to pay a monthly fee (think in the $5 range per child). With Greenlight, for example, you’ll get a one month trial, with subsequent plans starting at $4.99 per month. BusyKid debit card subscriptions start at $19.99 per year. FamZoo has a recurring fee of $5.99 that’s billed to you monthly, or you can pay in advance. With gohenry, you’ll get 30 days free before paying the monthly fee of $3.99. When you open an account for your child through Chase, there’s a $0 monthly fee if you already have an existing account.

Will getting a debit card help (or maybe hurt) my kid’s future credit score?

Debit cards pull funds from your checking account, unlike credit cards where you can spend even if you don't have the money to back it up. So since debit cards aren’t a form of credit, your debit card activity doesn’t get reported to credit bureaus, and it won’t show up on your credit report or influence your score in any way [1]. That means that your child’s credit score will remain unsullied — and unaided. Of course, it’s important that your child eventually gets a credit card to build their credit. But that’s not something you should worry about until they’re at least 18.

When should a kid get a debit card?

Debit cards for kids are typically utilized for allowances and chore payments, so when your kids start helping out around the house, maybe consider opening a debit card account for them.That way you won’t have to keep cash on-hand when you’re rewarding them for their duties or incentivizing them for doing well in school. (You might even eventually want to turn them on to savings goal apps when they're ready for even more advanced money management.)

Is there a minimum age limit for debit cards for kids?

Some debit cards have an age limit of six years old, but others like BusyKid allow for you to open up a debit card at any age. Now, most kids that age are just learning how to read at the age of six, so simultaneously teaching them about the concept of money may be too much for them to handle. But if you notice your son or daughter’s affinity for math at an early age, opening an account for them could be your chance to teach them something new.

Can I get my child a debit card through my bank?

If you want to keep both you and your child’s finances in order, Chase bank offers a debit card for children that gives you access to control their accounts from the comfort of your own Chase app or the bank itself. But other debit card companies for children have apps that make transferring money from your bank, and controlling their spending easy. Other banks like Capital One and Alliant Credit Union also offer child and teen debit cards.

Should I get my kid a credit card instead of a debit card?

Children can’t open credit cards in their name until they turn 18. A parent can get their child a credit card as early as 14, but there aren’t spending limits and other controls that can be placed on the card like there can with debit cards for kids.

Can I monitor where my child uses their debit card online?

Even though your child will be the one holding, using, and spending money on their debit card, you’re in control of how much they spend and where they spend it. When you download the adjoining app to go with whatever debit card you choose, you have the option to put restrictions on the card, as well as monitor it in real time. Your child can use these cards everywhere debit cards are accepted both online and in-stores as long as you give the approval [2]. Generally, these apps have permission-based spending rules for specific stores and spending categories that allow parents to place their own limits on a child's spending at a particular store or within a particular spending category.

How do companies behind debit cards for kids make money?

The monthly fees you pay for your child’s debit cards go back to the company. Additionally, they earn a handful of pennies on each transaction out of what merchants pay to accept plastic [3]. So no, they won't be teaching your kid about the harsh realities of excessive fees. Save that disappointment for when the kids get older.

The 5 Best Debit Cards for Kids

Greenlight - best debit card for kids overall

Greenlight, $4.99/month

It’s time to teach your kids financial independence, and you can do that with a Greenlight card. It’s our top pick for the best child’s debit card overall because of its parental controls, goal setting, and chore and allowance management. Parents have the option to turn on notifications when money is spent on the card. With Greenlight, you get to choose how much your child spends and where they spend it. Greenlight is $4.99 per month for up to five kids, but you get the first month free.

FamZoo - best debit card to teach kids about money management

FamZoo, $5.99/month

FamZoo is more than a prepaid debit card you hand to your kids before they zip to the mall and spend their allowance money on Wetzel’s Pretzels and overpriced boba. It’s a way to teach your children about the importance of money and financing for the future. With FamZoo you can set savings targets, make savings projections, and track progress, and teach your kids to set, track, and achieve financial goals. FamZoo is $5.99 per month per family, and offers a free one-month trial.

BusyKid - best debit card for young kids

BusyKid, $19.99/year

BusyKid believes it’s never too early to teach your kids about money. With no age restriction, you can order a BusyKid debit card for your child when they’re born. (It would certainly save you the worry of having your baby swallow rogue pennies.( One Busykid debit card is included in your $19.99 annual family subscription, and each additional card is $7.99 per year.

Chase First Banking - best debit card for kids from a major bank

Chase, free

Chase is one of just a few major banks willing to give kids debit cards and, you know, see what happens. Parents who already have a Chase account can create a debit card account for their children starting at the age of six. And the best part is that it’s free if you already have a Chase account open. This debit card gives you control over how much your kids spend, and gives them the opportunity to learn how to spend and save.

gohenry - best debit card for kids to turn savings into a game

Gohenry, $3.99/month

Learning about money is important. But that doesn’t mean it can’t be fun, too. gohenry allows kids to learn about saving and investing with videos and interactive quizzes in the gohenry app. And when your kids have fun learning, you know you’re doing something right. Gohenry is $3.99 per month and offers a free month trial.