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Debit cards are a popular banking tool for people of all ages. But if you’re under 18, you may be wondering when you can start using your own debit card.
First, it’s important to understand the difference between a debit card and a credit card. A debit card is tied to your checking account and allows you to pay for things with money from your bank account. A credit card gives you a line of credit that you can borrow from at any time and then pay back in full over time.
The most obvious difference between the two is that a credit card will charge interest on whatever money you borrow, while a debit card won’t. Credit cards often have an annual fee, while many bank accounts don’t charge anything extra for their debit cards.
For people under 18, there are some additional restrictions on what they can do with their debit cards that aren’t placed on adults who use them:
To answer the question, what age can you get a debit card, here is the answer. Minors under 13 years old are legally prohibited from having a checking account and therefore cannot have a debit card tied to one until they turn 13 years old. Minors who are 13-15 years old need permission from their parent or guardian in order to open a checking account or get a debit card tied to one.
How To Choose The Right Debit Card?
Apart from asking what age can you get a debit card, you should also know all about debit cards. Choosing a debit card for your child is all about finding the right balance between convenience and safety.
One way to choose a debit card is by evaluating their security features. For example, some banks allow you to set up alerts that send you a text or email any time there’s a transaction on your child’s account. That way, if they try to spend more than you’ve approved, or if someone else gets access to their account, you’ll know right away and be able to prevent any damage.
Another thing to consider is whether the card has any parent-friendly perks for you. Some banks give parents certain rewards when their kids use their debit cards responsibly. For example, you might get cash back on a purchase when your child makes it on time and within budget.
You can also find out what kind of protections the bank offers in case the debit card is lost or stolen. Many banks will replace lost cards for free, but it depends on which bank you go with and how much your kid spends with their card in a given month.
Also, make sure that there are no minimum balances required for your child’s account at whatever bank they choose!
Can Children Misuse Debit Cards?
The main concern of people asking what age can you get a debit card is debit card misuse. Debit cards are convenient. They let you buy things online, they’re accepted at most places that take credit cards, and you don’t have to carry cash or wait for checks to clear.
But with convenience comes responsibility. If you’re a parent who wants to teach your child the value of money, then a debit card might be a good tool for teaching him or her how to budget and keep track of spending. However, kids can misuse debit cards in a number of ways.
The first thing parents should know about debit cards is that they can be used without entering a PIN—you only need to enter your pin after an ATM or gas station purchase or when making an online purchase above $50. Also, kids can get their hands on your card by taking it out of your purse or wallet while you’re not looking. These are perfect opportunities for little hands to make purchases they shouldn’t be making!
Do Debit Cards Help With Building Credit History?
Debit cards can be a great tool for many consumers however people still wonder what age can you get a debit card. To use them with maximum effectiveness, you should probably know some things about credit history. A credit history is a record of your borrowing and repaying habits, which is kept on file by credit reporting agencies like Equifax, Experian, TransUnion, and Innovis. This record can be used to help determine your eligibility for things like loans and bank accounts, so it’s important that you have a good credit history if you want to be able to borrow money responsibly.
If you have a bad credit history or no credit history at all, it can be hard to get the money you need to purchase new items or cover unexpected expenses—but it’s not impossible! Using debit cards responsibly can help build your credit history. In addition to helping you keep track of your spending, they also help protect you against fraud and identity theft.
Plus, they give you peace of mind while away from home—you don’t need an extra card in order to withdraw cash from an ATM or make purchases with a card reader when your debit card is always with you. You should only use debit cards for the purpose of building your credit history if you plan to pay off what you charge each month.
How Do You Teach Children To Be Responsible With Debit Card Usage?
When you’re teaching children how to use a debit card, you want to start by having the children practice using their debit cards on small, inexpensive purchases. This will help them become accustomed to the process of using a debit card, and it will help them get used to the concept of money being taken out of their bank accounts immediately when they make a purchase.
In the beginning, you should always be with your child when they are making a small purchase with their debit card. This is essential because if they run into any problems—such as if they enter an incorrect PIN number or if their card is declined—you will be there to help them sort it out.
It’s also important that you have a conversation with your child about responsible use of their debit card. Let them know what steps they can take to be sure that they are not using too much money from their bank account at once and that they do not buy more than what is in their bank account. Also explain that when you give them money for a specific purpose, such as for school lunches, that money should only be used for those purposes and no others.
Conclusion
In the end, whether children should have debit cards will come down to a number of factors. Most of the time, if children are old enough to qualify for a debit card, they will be old enough to manage it responsibly. That said, you always have the option to monitor their spending and adjust their access if they begin exhibiting irresponsible behavior, or if they lose their card. And though there are risks with giving your children a debit card, in most cases it will likely be the responsible thing to do.
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