Why Giving your Child a Debit Card is Safer Than Cash

Children need to learn about money from their parents and carers. What better way than to give them their own debit card for kids?
Amabel Polglase
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December 8, 2022
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4
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Most kids don’t understand the concept of debit cards and cash. They are kids, after all. Children need to learn about money from their parents and carers. What better way than to give them their own debit card? Many parents will decide to give their children a debit card to help them learn about money from an early age. It is a great way to introduce good financial habits, but it’s also much safer to use a debit card than cash.

As parents, you’re the people who work hard for the cash in your account, so your child needs to make the connection between spending money and earning it. A debit card is a great way to do that. 

A debit card, especially a pre-paid card with a spending limit, is safer than cash in so many ways. This article will discuss why a debit card is safer than cash, the benefits of a debit card for kids, and more.

What is a debit card for kids?

A debit card for kids works similarly to an adult card. It can be used in the same way, including withdrawing money from cash points, contactless payments, and shopping online.

Depending on your child’s age, they may have a part-time job or income from pocket money that can be paid directly into their account. This money can then be spent using their kids’ debit card. The main difference is that the account can be monitored so parents can see where they spend their money.

You should think about the following questions to determine if your child is ready for a debit card.

·   Are they responsible enough to manage their own money?

·   Have they shown appropriate behaviour towards money?

·   Have you spoken to them about the benefits and potential drawbacks of having a debit card of their own?

Studies have shown that children as young as three can understand money basics, and our Kids’ accounts are available from the age of six. Teenagers are more likely to need a card because they may be out with friends and need regular access to money. It is up to you as parents to decide when the time is right.

Why giving your child a debit card is safer than cash

As we move towards a world where less cash is used daily, teaching kids about debit cards is more important than ever. Here are five reasons why giving your child a debit card is safer than cash.

1. Teaches financial responsibility

A debit card will help kids understand money’s value and how quickly it can be spent. It also gives them something important to look after. A physical card will need to be kept in a secure place so that it is not lost or stolen. Once cash is gone, it’s gone. A debit card will show each transaction on the app so they can be accountable for their spending.

2. Less risk of card being stolen

Cards have lots of built-in security, so they are somewhat useless to criminals because they can be cancelled immediately. But sometimes cards are lost or stolen. It happens. You can easily cancel or freeze your card if this happens straight away. If the card is found again, you can unfreeze the card in the app. The chances of you getting back cash that was stolen from your child are very low.

3. Don’t have to walk around with cash in their pocket

Walking around with cash in your pocket isn’t a good idea for anyone, let alone children. If your child is carrying cash, it makes them more of a target. If a criminal sees them carrying cash, it is more likely this will be stolen. Plus, the notes sticking out might ruin their outfit and the noise of coins jingling in their pocket is so not cool.

4. Learn about staying safe online and cyber security

Talk to your kids about the importance of protecting their identity when shopping online and being cautious when entering personal details. Cyber security programmes are available, but it’s important to be vigilant.

5. Help them to save

You can teach your child about saving when they have a debit card. If they are saving for something like a new gadget, trainers, or game, they can save for it with HyperJar savings Jars. Our award-winning app helps your kids manage their money in digital jars. Think of them as digital piggy banks which they can name, colour code and personalise to make saving more fun.

What are the benefits of a debit card for kids?

A debit card will give your child a hands-on experience when it comes to money. And because you can get pre-paid debit cards, you can limit what your child has available to spend. It is more than just money; a debit card can teach them about independence, responsibility, and safety. There are many benefits of debit cards for kids, including: 

●  Builds good money management skills and positive habits

●  Teaches budgeting and tracking spending

●  Parents can keep track of purchases and be notified of any unsafe or unapproved transactions

●  They do not have to carry cash

●  The card is easy to block and replace

●  You can quickly transfer money to your child in emergencies

They may not always get it right. If they impulse to buy something ridiculous, overspend, or buy something they shouldn’t, use it as an opportunity to learn about money management and understand the consequences of their actions. When they realise that they have no money left for a meal with their friends or the concert tickets they want, they will soon get their spending habits in check.

Tips for using a child debit card safely

Giving your child the responsibility of a debit card is a big step, and you should be 100% sure that your child is ready. To help introduce your child to the responsibility of a debit card, we’ve listed some tips on how best to approach teaching kids how to use their card safely:

·   Sit down with your child and explain how to use a debit card responsibly

·   Explain the importance of keeping the card in a safe place and explain how to freeze or cancel the card if it is lost or stolen

·   Explain that they should keep their PIN safe and not share it with anyone as this will increase the risk of fraud or theft

·   Create a budget with your child and introduce them to basic money management

·   Monitor your child’s spending to keep an eye on their spending habits and explain how spending money poorly can result in financial problems in the future

·   Teach them about the importance of cyber security and how to protect their personal information online 

By taking these safety tips on board, you can give your child a sense of financial independence and still obtain an appropriate level of control and peace of mind.

How can I get a debit card for my child?

So, you’ve decided that the time is right to get your child a debit card. Great. You can add a pre-paid Kids Card to your HyperJar account today. HyperJar’s 100% free pocket money app is the only one that lets kids manage their own money with the supervision of a parent or carer. As long as your child is six or older, simply follow these steps, and their HyperJar Kids card will be in the post quicker than you can say budget planner.

1. Download the latest version of the HyperJar app from your app store

2. If you haven’t already, create an account

3. In the app, click on the ‘Account’ tab. This is where you can add a new card to your account

4. Click ‘Kids Card’ (The second one down on the menu)

5. Select ‘+’ to add a user and follow the instructions to add the Kids card to your account

Is your child ready for their first debit card? Apply for your HyperJar Kids card here.

Conclusion

Your kids will have a debit card eventually, so why not start early so they can spend and save under your care and supervision? It is safer for them to have a debit card with them instead of withdrawing and carrying cash. A Kids’ debit card will teach them valuable lessons about how to manage money well – a life skill with limitless value.

Amabel Polglase

Chief Marketing Officer

Amabel has diverse experience in business, marketing and entrepreneurship, including founding her own successful startup. She served in several senior leadership roles prior to joining HyperJar including Zilch and Curve Card where she led brand, marketing and communications. Before joining the fintech revolution, Amabel was a managing global client partner at Facebook and prior to that at McCann-Erickson, the world’s largest ad network. She volunteers at Girls Out Loud, a charity created to empower and inspire teenage girls, and is also a mentor at The Girls’ Network. She received her MA in history and international relations from the University of St Andrews.

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