As your teen grows, the financial independence will also need to grow through part-time jobs. And that’s when you realize it’s the right time to give your child a spending card for their own.
But, what card should your teen possess? A credit card- oh no, he’s too young for it. So, how about a debit card then? Voilà, that can be an incredible decision, mommies.
When is the Right Time for your Teenager to Have a Debit Card?
Debit cards swear to make money spending effortless. It is pretty easy to acknowledge the essentials of swiping the card and debiting money from the checking accounts as adults. And that’s what makes it a critical skill for children to learn. Also, it is never too early to embark on the journey of teaching your kids the fundamentals of money management. A sound way can be by enabling a hands-on experience using a debit card.
Believe when they say that the decision of giving the debit card can be both practical as well as educational. But, when is the right time to give your child a debit card? Well, it’s at the onset of teenage years after foreseeing the following reasons. Let’s get going with discovering what these are:
● Debit Cards Let Kids Ask for Chores:
A debit card for teens brings the concepts of earning as well as saving to light. When kids track their account balances, kids get an inspiration to earn, especially when they eye at their budget.
Many parents say that after signing up for a debit card, the kids usually ask for chores. By doing so, they’re confident of earning more money and saving towards their goals. Also, they learn fiscal responsibility by keeping for purposes like higher education, vet expenses, car insurance, and much more. Most kids tend to save for goals like buying a car.
● Debit Cards Teach Kids the Habit of Budgeting:
Debit cards for kids bestow an educational opportunity for parents to begin conversations about finances. Kids get to make real-life trade-off decisions for realizing the value of each dollar. When kids have money in their bank accounts, they exercise control over their money and spending. Also, they learn the maxims of budgeting and make intelligent financial decisions.
One parent added,” Ever since I’ve got a debit card for teens from Greenlight Financial Technology, my kids have become more cautious about what they’re buying. It is because they’ve to work for that allowance.” This saying holds the truest when the money is theirs. And they make more intelligent decisions for delaying gratifications.
● Debit Cards Prepare Well for Credit Cards:
When kids turn 21, credit card offers intrigue the kids, but do they know how to use these? Maybe no, and that’s why many parents are reluctant to do that because the credit card balances carry over from one month to another. And, this number is on an ever-increase in the U.S.
However, if kids are more financially responsible, their likelihood of making intelligent decisions increases. And, this saying holds the most appropriate when it comes to using credit cards and paying off ever-accumulating debts.
Financial experts say that there is a positive correlation between long-term wealth and financial literacy. And, the debit card is usually the first step towards a sound financial future. So mommies, the sooner you prepare your kids to be monetarily savvy, the better you prepare them for future decisions.
The Bottom Line
Some other reasons that validate your decision of giving your teen a debit card are that it reins in their online purchase. Also, it backs their financial independence. However, never share a debit card with your teen because they request it, especially when you’re not ready for it.
Make sure you assist your teen in walking down the line in developing responsibilities and independence skills.
Just evaluate the reasons, mommies, and get going, whenever you feel it’s the right time for them!