Teaching your children about money management has progressed far beyond piggy banks. Check out our list of the finest free debit cards to teach your children about money management. Learning about money with your children is a vital step towards financial literacy. Many banks and businesses provide debit cards for children with additional capabilities that allow parents to monitor and, in some situations, manage how much their child spends.
These apps aid with spending, saving, charity donations, financial literacy courses, and even allow friends and family members to give money directly to the child for birthdays or gifts. However, as beneficial as debit cards for children can be, some downsides, such as exorbitant fees or clumsy interfaces, should be addressed before signing up.
In the realm of modern financial services, there exists a growing demand for hassle-free and secure banking experiences. Individuals seeking an effortless approach to managing their finances and transactions have led to the emergence of online banks offering instant debit card issuance without the need for an initial deposit.
This novel concept caters to the convenience-centric clientele by providing options such as a free online checking account bundled with a virtual debit card. This virtual card, equipped with the capabilities of a traditional debit card, allows for direct debit payments and seamless transactions. Institutions like Chase Private Client Debit Card, Visaprepaidprocessing Bank of America, and Truist Delta Debit Card have embraced this trend, transforming the landscape of banking.
By offering a straightforward process to acquire an instant virtual debit card, these online banks with debit card services empower customers, making the management of their financial affairs, including payroll and everyday transactions like those with HEB Debit and Netspend HEB, remarkably convenient. The amalgamation of technology and financial services has given rise to a new era, where a capital one debit or any similar card is no longer just a physical entity but a gateway to efficient and detection-free banking experiences.
6 best free debit cards for kids In Detail:
Till Financial is a financial technology business that collaborates with Coastal Community Bank (Member FDIC) to offer a free app and debit card to children and families. Till Financial’s lack of costs and emphasis on assisting families in teaching their children about money are two of its key advantages.
Anyone over the age of 18 can open a Till Financial account, connect it to an external bank account, and invite their children, partners, or other family members to join. Parents can transfer money to their children for a variety of reasons, including chores, duties, allowance, and even one-time transfers. If a child works, their income can be put directly into their Till account using the routing information found in the app.
Till Financial offers both virtual and physical Visa debit cards, allowing children to make purchases both online and in person. Most retailers accept debit cards, and they can be used with Apple Wallet or ATMs, however the ATM servicer may charge a fee.
Although Till has a decent array of functions, it lacks many of the benefits available in other apps, such as investing or donating to charity through the app or barring merchants via parental restrictions.
Mazoola is one of the few digital debit cards that adheres to the Children’s Online Privacy Protection Act (COPPA). COPPA forbids websites and internet service providers (ISPs) from collecting and using personal information about children. Mazoola is free for the first 12 months, after which it may charge a fee.
Mazoola does not provide actual debit cards as one method of safeguarding your personal information.
Parents fund their children’s access with a digital wallet account linked to an outside bank account. The digital wallet can be used for online transactions as well as in-store purchases using Apple Pay or Google Pay.
After creating the wallet, parents and children can establish objectives, save for charity, or complete tasks for an allowance to help develop good money habits.
Mazoola is worried about your online security and may be an excellent solution for people concerned about identity theft. Some transactions may be difficult to make due to the lack of a physical debit card, and the $200 weekly maximum transfer limit may not be sufficient for some families. Mazoola accounts are insured by the FDIC.
Axos Bank First Checking-
Axos Bank provides a checking account for minors aged 13 to 17, as long as the account is co-owned by an adult parent or guardian. Axos Bank, like some of the finest checking accounts for adults, offers an APY (annual percentage yield) of 0.10% (as of May 23, 2023) on their First Checking Account and connected debit card.
There are no monthly maintenance fees, overdraft fees, or insufficient fund fees with Axos’ First Checking joint account. Even better, the bank would reimburse up to $12 in monthly domestic ATM fees. The account has daily withdrawal and debit transaction restrictions of $100 and $500, respectively.
A parent or guardian must be named as a co-owner on the account, but there are no spending or parental controls. Before signing up, ensure that your kid understands the responsibility they are taking on, as it is possible to overdraw the account or otherwise cause difficulties with reckless spending habits. FDIC member.
Capital One MONEY Teen Checking-
For children aged 8 and up, Capital One Bank offers the MONEY Teen Checking account, which includes a free debit card. The account must be co-owned by a parent or legal guardian and the child. There is no required minimum deposit or balance, and the account balance will earn 0.10% (as of July 21, 2023). APY.
The Capital One app allows children to check their balance, create savings goals, direct cash for spending and saving, deposit checks, and receive direct deposits and SMS reminders.
Parents can set up automatic allowances and one-time transfers, remove money, view transactions, and receive text reminders. While parents do not receive a debit card, they do have influence over the card.
You do not need a Capital One account to fund the MONEY Teen Checking account, and you can link any other bank account to it.
The card can be used at over 70,000 fee-free ATMs nationwide by children. It has a total purchase and withdrawal restriction of $500 per day for account owners under the age of 18, and a maximum of $5,000 per day for account owners over the age of 18. FDIC member.
Alliant Credit Union-
Alliant is the sole credit union on our list, and it has the highest APY interest rate of any teen account on our list, at 0.25% (as of August 10, 2023). If their parent is an Alliant Credit Union member, children between the ages of 13 and 17 are eligible for an account.
There is no minimum balance requirement or service cost for the teen checking account. Kids can use over 80,000 fee-free ATMs nationwide, and Alliant will reimburse up to $20 in ATM fees per month. Parents and children both receive a Visa-branded debit card.
Parents may set up transaction notifications to keep track of their teen’s spending, and the account has daily debit card restrictions of $500 in ATM withdrawals, $500 in PIN-based debit card purchases, and up to $5,000 in signature-based debit card purchases.
Transferring funds from the parent’s Alliant account to the teen checking account is simple and can be done once or on a regular basis. Only adult owners can use the Alliant Mobile Banking app to make outgoing transfers. NCUA member (credit union equivalent of the FDIC).
Current is a financial technology startup that works with Choice Financial Group (an FDIC member) to deliver banking services via the Current app.
While many people use Current to handle their finances, the company also has accounts for minors. Many popular features of Current, like as savings roundups and interest-earning Savings Pods, are also accessible for teen accounts.
Parents can set purchasing restrictions, assign duties, and automate allowance payments. Parents can even restrict a shop and receive alerts about their teen’s spending.
An adult must first sign up for Current and link an external bank account before opening a teen account. Teens and “Secondary Parents” (those who are not the primary account holder) can then download Current on their phones, and the primary account holder can link the accounts.
Signing up with and using Current is free, and teens can acquire a Visa debit card. Parents can transfer money from their current account to their teen’s account in real time. External bank deposits can take up to 5 days to become available, and transactions, such as ATM withdrawals, may incur costs.