Things You Should Know Before Getting Your Kid A New debit Card
In the last few years, the schools are concentrating on teaching the students about the financial nitty-gritty. Yet the school curriculums are still miles away from teaching the children about the basics of money management.
It simply means that the responsibility of teaching your children about managing money falls entirely on the shoulders of the parents. While the theoretical money advice is great, the debit cards from kids debit card company helps you to offer your kids better and more realistic money management lessons.
With prepaid debit cards available in the market, it has become easier for the parents to control the expenditure of their kids while teaching them about wise usage of money at the same time. But before you take the leap, check the following pros and cons of giving your kid a debit card and decide whether it is right for your kid to have one.
The first and perhaps the biggest benefit of handing a debit card to your kid is that they will learn about handing digital money. Studies have shown that we tend to spend more while using plastic money. While that might not be so good, giving your kids access to plastic money can help them to learn about spending habits.
The kid’s debit card company assures that the debits cards they hand out to the kids are safer than that of carrying cash. While the kids can still lose their debit cards, they can easily lock the card out without losing a single penny.
Paying through the debit card is also an easier and more convenient way of making payment than carrying cash around. Also, the online card statements help the kids to understand their spending habits better and make sure that they spend wisely in the future even though they make mistakes initially.
The cards will help your kids to learn about Atm transactions and will enable them to carry out all the digital expenditure like a pro.
The Down Side
Limited Fraud Protection
This is perhaps the biggest downside of handing your kid a debit card from the kid’s debit card company. If the debit card gets stolen or if your child faces some fraud, the debit card does not provide as strong protection as the credit cards.
By giving the debit card to your kid, you are allowing them access to all the money at once. This can simply lead to overspending if you do not keep an eye on the spending habits of your kids. To make sure that they are using the debit card right, you should start with small amounts, and then gradually increase the money.
Instil Basic Money management Skill first
Instead of handing the debit card out to your kids, try to teach them about the basic spending habits first. Once you are sure that your child has mastered handling the physical money and understand the concept of buying and spending completely, only then you should give them a debit card of their own.
While handing out a debit card to your kid is no doubt one of the best ways to teach them about responsible money management, you should figure out your parameters first. Consider the age of your kids when you will be most comfortable in handing him/her the card, and then go to kids’ debit card company to avail one for your child.