How to talk to kids about their first debit card

Why it matters

Your child is growing up in a world where cards and Digital Wallets are replacing cash. Learning how to use them responsibly is a critical skill. 1

Ready for a debit card?

Handle an ongoing expense, such as a gaming subscription Frequently ask you for money Receive regular payments through an allowance or job Having their own account and card can teach valuable lessons about spending. Your child may be ready when they: 2

Saving vs. spending

Learn more about savings accounts for kids Your child may already put money in a savings account that has a debit card. Make sure they understand that paying with a debit card takes money out. 3

Set up a separate account

A dedicated savings or checking account for your child can give them a sense of ownership. Look for one that has: 4

Funding the account

Deposit allowance and cash gifts. Some apps let you assign specific chores and will transfer money into the account when the chores are done. 5

Monitoring the account

Keep an eye on activity and show your child how to track deposits, spending and balances on the account’s website and mobile app. Discuss any patterns. 6

Using the card wisely

Help them budget so they don’t spend more than is in the account. Explain they may incur fees if the balance falls below a set minimum. 7

Staying secure

Stress they shouldn’t share the debit card, PIN or account details in person or digitally. Have them ask you before entering banking information online. 8

Moving beyond plastic

Help your child add the debit card to their mobile phone’s Digital Wallet. Explain that paying with the phone adds security and convenience. 9

You may also be interested in

Explore visual story, 1 minute How to talk to kids about their first savings account Go to Explore visual story, 1 minute How to talk to kids about money Go to Visit Better Money Habits

How to talk to kids about their first debit card﻿