The Dos and Don’ts of Children’s Credit Cards

If you’re thinking about getting your kids a credit card but don’t know where to start, you’ve come to the right place.

With the help of a credit card, children learn responsibilities and skills that will be useful to them when they grow up. Many people think that children are too young to understand money, but that’s not true.

Children can master a foreign language through cartoons in a short time, don’t you think they can’t master what money is? We therefore advise you to give your kids the right credit card as soon as possible.

When to start introducing kids to credit cards

The earlier you start, the better it will be for you and the child. Many studies have shown that children have a conception of money, they know more or less how it works from the age of 6.

It has happened to all of us that grandparents, aunts and relatives give us money when they see us, for our birthday or to buy us something.

Running home and carrying money to put in our piggy bank, we collected coins and put them in. A card is another type of, say digital, piggy bank that can be controlled by parents.

Psychologists believe that if a child learns to appreciate money at an early age, to use it wisely and cautiously, he will have a much simpler life later on.

This means they must play by the rules, save and allocate their money correctly, and find a balance between spending and saving.

Child card opening guide

Step 1. – The first step is to choose a bank, an account and a debit card that meet the needs and requirements of your family. Debit cards are great because parents can monitor them and they’re networked, which is great for families.

2nd step. – After choosing a bank, it is time to open an account. The parent provides their personal information, as well as the child’s personal information such as first and last name, date and place of birth.

Step 3. – When they have finished creating an account, it is time to link it to yours and transfer the desired amount of money.

Step 4. – In the settings, you can specify restrictions and organize lists of tasks and obligations that your child must complete on a weekly/monthly basis

Step 5. – Each credit card offers options for saving money, shopping, investing and donating. Children can only borrow money from their parents, as long as they return it within the specified time.

Step 6. – Parents can limit transactions to certain brands and companies they deem inappropriate for their age.

learning through games

The best way to bring children closer to this new world is through play, it can be social games like shopping games. The children are extremely enterprising and know how to negotiate, they don’t give in until they get what they want.

Kids – small entrepreneurs

We also have examples of how children earn extra money by selling objects and things they have made themselves, walking the neighbors’ dogs, babysitting, mowing the grass , taking out the trash and many other jobs. In this way, the child gains some satisfaction, because he has earned extra money through hard work, which, now that he has earned it, should be deposited on the card.

How to choose the right card for your child?

There are many offers and options from various service providers and banks, it’s up to you to decide which one to choose. There are those with an age limit of 6, 11, and 13, while others have no age limit. Also, what is specific to this type of card is that it has a fixed daily limit on the amount of money that can be withdrawn and it all depends on the bank and the service. Also, the maximum daily limit that can be withdrawn in some banks is $1,500, while in others it ranges from $100 to $1,000.

Currently, multiple award-winning Busiykid, Greenlight Credit Card, GoHenry, and FamZoo dominate the credit card market. Each has its monthly fee that you have to pay, in most cases it is 5 cards, and each of the following is $5. Of course, these prices also vary by service provider.

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