Debit Cards & Credit Cards: Is Your Child Still Too Young?
As a parent, you must be fully aware that your child will one day carry their credit and debit cards. They may have already asked you for payment cards, but do you know when you must grant your kids access to credit and debit cards?
You must be wondering about the appropriate age of your children to give them access to electronic payment methods. However, the issue is not of an era but rather more of a need. A few kids prefer to manage their money using piggy banks because they have difficulty understanding that a debit card Is a payment method.
Teenagers discover and experience new things, which leads to unique needs. Setting saving goals and making a special purchase through a debit card when the time is right is an appropriate way to initiate your kid to payment methods. A teenager payment app is another life-saver tool that can assist your child in correctly performing money management at this young age.
Debit card for your teenage child:
To hold a debit card or a prepaid card for children, you must open an account in their name. Also, while taking this initiative, make your kids aware of the security measures to take while using a debit card and educate them on how to use a debit card. Being unaware of such things may place your child in embarrassing situations. They must be aware when sharing their card’s identification number with a friend for practical purposes or other reasons.
Importance Of Holding Credit Cards:
Credit cards can be a wonderful tool to give your child the first experience with credit and build a credit rating. However, ensure that your team needs it before providing access. For instance, if your child travels without you, a credit card would be the right choice for them as they may require it for making purchases. Otherwise, you can also provide your child with your credit card by adding their name as a secondary card holder if they are under 18.
Banking for teenagers is highly essential for kids these days as they are exploring new things each day and are becoming more self-dependent than in earlier times.
Children these days are highly passionate and curious to live independently and get as much exposure to the outer world as possible. But along with this comes the question of handling responsibilities. Be it related to their chores, relationships, or money management. You can advise them on other things, but money management comes with experience and time. Also, thanks to the children payment app that guides your child towards the best money management skills.
Educating your child about using credit and debit cards is essential. First and foremost, we must teach them about the budget and then move toward the credit basics, including balance, interest rates, minimum payments, and cash advances.
Apps like Junio helps children be aware of their spending to become a smart consumer, and that is why they must take a good look at their account and statements and analyze their purchases intelligently.
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