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With the financial world today and teenagers growing up faster than before, it is important to be able to help them with financial budgeting and guidance. That guidance may include a teen debit card. You may have a few questions as to what a debit card is, which cards are best for teenagers, what are the best pre-paid debit cards, are there teenage debit card programs, and what are the advantages of having a debit card for teenagers.
Debit cards
Debit cards can come in a variety of ways for adults, but there are debit cards specifically geared towards teenagers as well. A debit card is very much like a credit card; however, a debit card, pre-paid or regular, is drawn directly off the account to which it is connected. If it is a pre-paid card, the purchase amount is taken off what has been deposited into the pre-paid account. If it is off a bank account, the funds are taken directly out of the account that the debit card is drawn off and there are no extra fees. The debit card can be used in stores, ATMs, for online purposes, or wherever debit cards are allowed. Authorization is granted with a PIN number or at times by a signature.
Purpose and use of a Debit card
Debit cards are an excellent way for a teenager to be exposed to learning financial responsibility; there is not the illusion of unlimited funds; it is good for emergencies, and if it is lost or stolen, it is easily replaced and reported. Debit cards are much easier to handle than cash and give a teenager a good beginning to the adult world of financial responsibilities. Therefore, when they are visiting other states or countries, going to college, or simply learning how to manage their finances, a debit card may be the way to go. Debit cards are also very easy to find and get because there is usually not a credit check, and the funds are easily seen either online or through the bank they are drawn off. A teen debit card is a wonderful way for a parent or loved one to teach the teenager responsibility for his or her finances, so they are less apt to overspend or believe that everything is on credit.
Teenage debit cards
There are a variety of teenage debit cards available. The first place to look is your local bank. Each bank is different and may not have this option, but they may be able to help guide you and your teenager to the best place to go to find one. The biggest difference of a teenage debit card is that the parents or guardian can be directly involved in helping teenagers manage their money. Money can be deposited directly into the bank account, and with most debit cards, there is no question as to the balance left in the account. There are also special programs for teenagers through Master Card® and Visa®, both pre-paid and drawn off a checking account.
Pre-paid debit cards
A pre-paid debit card has many benefits. They are used the same as regular debit cards, but have a predetermined amount set by the deposit placed in the account. Since it is pre-paid, there is no credit check or approval needed; also, money can be conveniently deposited by cash, money orders, electronic transfer, or even by an allowance schedule. A few of the best pre-paid debit cards are the Allow Card by Master Card® and the Visa® Buxx. Both programs can be found and set up online and offer educational tools online. You and your teenager can keep track of spending, make deposits in a variety of ways, and extra fees do not apply since there is a predetermined limit of spending.
Debit card programs
As previously mentioned, the Buxx and Allow Card both have online tools for education. These debit card programs are set up to help the teenager either with or without the parent or guardian. These debit card programs have helpful tips, guidance, and the ability for both the teenager and adult to check the debit card’s account balance, and even offer financial lessons. Online teenage debit card programs also give the advantage of the teen being in control of his or her own finances and budget. With these programs, money can be deposited with ease and security.
In conclusion, the final decision is up to you and your teenager as to what is the best choice for financial responsibilities, what the best pre-paid debit card is, and if this is the best venue for learning budgeting.
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