Debit Cards for Teenagers

By
Attorney

Several major banks offer debit cards specifically designed for teenagers. These cards differ from prepaid cards and gift cards because they deduct money from an established bank account. Some cards may be linked to a parent's bank account.

Available Debit Cards for Teenagers

  • Visa and MasterCard offer debit cards aimed at teenagers. Parents must usually open the accounts for these cards. Most allow parents to track their child's spending.
  • PAYjr Visa Buxx Card: This card is designed for teenagers age 13 and older. It is usable at any location accepting Visa debit cards and at ATM's. Parents or teenagers may deposit money into the card's account by direct deposit, wire transfer or from a credit card. The minimum per-deposit amount is $10.00 and maximum $250. The card can hold a maximum value of $2,500. Fees are charged for enrolling in the program, reloading the card, withdrawing cash and requesting a monthly statement. There is also a monthly service fee.
  • PAYjr Chore and Allowance Card: This debit card is intended for children age 12 and younger. It is sold as an "online allowance system." Parents can establish chores for their child to perform and, once complete, the system notifies the parents that payment is due. The parent then transfers money onto the child's debit card by direct deposit or charging it to a credit card. Parents and children can review the balance owed and chore performance chart online. There is no enrollment fee, but the company does not provide information on whether other fees are charged.
  • Bill My Parents MasterCard: This debit card can be used at any location accepting MasterCard or at ATM's. It is available for children 13 and older, is reloadable and can be locked or unlocked by the teen's parents at any time. The card sends text messages to parents to track their child's spending. It requires a minimum load amount of $10.00, and allows a maximum reload of $2,500. The maximum allowable card value is $5,000. Teenagers are limited to spending $500 per day. Monthly service fees are charged as are fees for reloading it, withdrawing cash and not using the card.
  • MyPlash Teen MasterCard: This card does not have a specific minimum age requirement. There is no minimum or maximum reload amount, restrictions on use or maximum card value. Email alerts are sent to enable parents to track their teen's spending. There are no activation or monthly fees, but fees are charged for using an ATM or reloading the card using a credit card.
  • PayPal Student Accounts: This debit card is linked to a PayPal account established by a teen's parents. The teen must be at least 13 years old to be eligible. Parents are able to monitor the card's use online. Cards can be used online and in stores. There is no minimum or maximum card reload or balance limits. Fees are not charged for activation or monthly usage, but are charged for reloading it using a credit card or withdrawing money at a bank.
Happy Teen On Road

Debit Cards Associated with Bank Accounts

Most major banks allow account holders to have several debit cards linked to the same checking account. Usually, there is no age restriction for cardholders. Parents, therefore, may be able to provide their teenager with a debit card related to the family's bank account. These cards usually carry no fees.

However, it is rare for these cards to have maximum spending limits attached to them. Although a bank may limit the amount of cash that can be withdrawn on a daily basis by using the card, there is no restriction on the amount of money that can be spent on direct purchases, such as paying for groceries at a grocery store.

Should You Get Your Teen a Debit Card?

A debit card can help your teenager learn to budget. It can also teach them about the importance of working hard to earn money. Moreover, the fact that the card's use can be monitored allows parents to check in on their child's location as well as their spending habits. These cards, therefore, may provide parents with a way to know where their child goes as well as what they purchase.

The downside to teenager-specific debit cards is that you may have to decide between paying fees and not limiting the amount of money your child can spend. If your bank will allow you to limit the amount of money your teenager can spend on their debit card, this type of card may prevent you from paying high fees.

Picking Your Teen's Debit Card

Thoroughly read the contractual terms for each debit card and ask any questions to the card provider prior to obtaining a debit card. Additionally, speak with your teen about the importance of spending wisely and the fees they will incur with their card's use.