A debit card is not a credit card. There is no credit involved in using this type of card. When the card is swiped for a purchase, the purchase amount is automatically withdrawn from the associated checking account. Therefore, users are not borrowing money to use the debit card but merely removing their own money from their accounts.

In this situation, it can be a good idea to allow your older teen to use a debit card. Here are some examples of how this can be a good experience for your child.

Teach Wise Spending Habits Now: The use of a debit card allows your children to learn how to make wise purchases. Rather than giving them a credit card where they can spend freely up to the credit limit, they are forced to make good decisions about their use with the debit card.

Money Available: Teens will frequently come into situations where they need access to money to make a purchase. They may need to buy gas or may need to use a card for a deposit. In these situations, the debit card will give them that benefit without the risk.

Safety: Many debit cards come with protections from fraudulent charges. Check with your bank about the availability of these protections. If available, using a debit card can be safer than using cash. Should a thief see your child is carrying a large amount of money, your child may be more at risk for theft.


Getting a Debit Card

Obtaining a debit card is usually a simple process. If your child does not have one already, visit your local bank or the bank’s website. Open a checking account in your child’s name. Depending on the age of the child, you may need to cosign on the account, which simply means that a parent’s signature is necessary to open the account. You will take partial responsibility for that account.

When selecting a debit card for minor children, keep the following in mind:

  • Select a company that charges few fees. All banks must provide you with a fee schedule of all fees that are charged or could be charged associated with the type of account you open.
  • Look for a bank that does not charge for obtaining a debit card. Some companies charge a fee for this service.
  • Consider any benefits that the bank may offer. Some banks, for example, will allow you to waive fees if you have a paycheck directly deposited into the account on a regular basis. If your child has a job, find out if direct deposit is available.

Before opening any debit card for an adult or a minor, it is critical to read the terms of service and any other documentation prior to opening the account. Compare several companies to find the most affordable options. Some banks do have limitations on who may obtain a debit card. The more you know in advance, the better your decision will be.

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