One of the most important resources for modern financial management is a debit card. This type of plastic money allows us to spend and invest our money in a controlled way. By using a debit card, we can never spend more than we have. This is because the expenses that we can handle using this card are limited by the amount of money that we have in our bank accounts. As such, a debit card is an essential item to have in today’s economic landscape. It is actually quite important for parents to introduce this card to their children when they are at the teenage level. By doing so, the teens can begin to learn financial management early in life.
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5 Tips on Picking A Debit Card for Teenagers
Here are tips on how to pick a debit card for teenagers:
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Explain the basic operation of the debit card
The first step to getting the most ideal debit card for your teenage child is to explain the fundamental operation of this financial tool. Explain that the debit card requires that money be first of all deposited into their bank account. Having done so, they can proceed to spend it. Unlike a credit card, you cannot spend money that you do not have. By explaining this foundational principle, you can prepare your teen to make use of the debit card successfully.
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Explore the fees
A debit card attracts some fees upon usage. Examples of these are an activation fee, transaction fee after ATM withdrawal, service fees charged every month and purchase fees. These charges can differ from one card to the other and are advertised as part of debit card promotion. Therefore, you can perform some research to find out the debit card which provides you with a most comfortable and affordable fee schedule. Having done so, you and your teenage child can pick it. This will most often involve setting up a bank account. Hence, you can assist your teen to perform this activity as well.
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Research the extra benefits
In a bid to attract depositors, banks normally offer special benefits for teenage holders of their debit cards. Examples of these are the cash for grades program which rewards teens with cash money for doing great at school. Other benefits include no charges for shopping online and smartphone applications to interact with the bank account. Pick out the debit card for teens whose benefits are most attractive to your teen.
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Establish an initial budget
The debit card requires to be loaded with money so that it can operate effectively. As such, you can establish an initial budget with your teen. This involves making a deposit into the backing bank account. You can load it with money that they have earned while doing part time jobs. You can also load it with some of your own money as an initial grant. Having done so, you can explain that your child can only spend what is in the account and nothing more. While picking an initial budget, it is important to consider elements such as the teen’s age, level of maturity and the types of things that they might buy using the card.
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Assess the client support mechanism
Every debit card provider company strives to ensure maximum satisfaction with their services. As such, it is important to analyze the customer support system before getting a debit card for your teen. Check to see how many methods of support are provided. Examples of these are email, live chat and phone calls. Furthermore, you can check their website for testimonials. Having done so, pick the one with the best client support system.
These guidelines can help you to get the most ideal debit card for your teenage child. Once you have done so, make sure to explain about debit card security and encourage them to be responsible spenders. This is how to create a firm financial foundation for your teen.
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