2 weeks Ago By Tiffany Connors
Minimum age : None Monthly fee : $6 to $15 a month, for up to five children Free trial : 1 month ATM fee : None Purchase fees : None Rewards: 1% cash back for purchases, up to 5% per year on savings One of the most popular debit card apps for children, the Greenlight Debit Card for Kids allows parents to restrict spending to specific stores, lets kids earn interest on growing balances and helps families set specific savings goals. The app is intuitive and easy to navigate. You can choose between three plans: Greenlight Core ($6), Greenlight Max ($10) or Greenlight Infinity ($15).
Your child can earn an annual percentage yield, or APY, between 1% and 5% on savings balances up to $5,000, depending on the plan. The Greenlight Infinity plan comes with additional safety features, including automobile crash detection and SOS alerts. We like that Greenlight lets parents pay kids for completing chores -- you can schedule automatic payments so you don't forget.
The app allows kids to divide their funds between spending, saving, investing and giving. And parents will appreciate the free financial literacy game that is accessible after downloading the app. Minimum age : 5 Monthly fee : $4 a month (billed $48 annually), up to five children per plan Free trial : 30 days ATM fee : None Purchase fees : None The BusyKid Visa Prepaid Debit Card is an excellent resource to help children develop financial literacy skills.
Kids receive a prepaid debit card for spending, and they can invest in individual stocks or donate money to a charitable cause. You can manage their chores and allowance from the app. Plus, you can send bonuses for rewards -- like good grades or just because.
Minimum age : 6 Monthly fee : $5 for one child; $10 for up to four children Free trial : 1 month ATM fee : None Purchase fees : None Acorns Early (formerly GoHenry) is a good choice for parents who want to help younger children take on more household responsibilities and pay them for a job well done. It's known for its personalized debit cards and companion app with features such as parental controls, customizable chores and savings goals. Money Missions expand your child's financial literacy development with age-appropriate in-app videos, stories and quizzes.
You can also reward your child financially as they complete the lessons. What we really like: The company's policy clearly states that it doesn't sell your -- or your kids' -- personal information to third parties without your permission. Minimum age : None; 13 for Step Black Monthly fee : None for basic; $5 for Step Black (waived with direct deposit) Free trial : None ATM fee : $2.
50 fee for out-of-network ATM (no fee for Step Black) Purchase fees : None Step may be better suited for teens who are ready to level up their financial knowledge, as it provides access to investment tools and offers financial literacy training courses. However, there's no minimum age to sign up, and younger children can easily use Step to start learning how to manage spending accounts and set savings goals. And Step doesn't charge a monthly fee to maintain the basic account.
Like a regular debit card, Step draws on deposited funds to pay for purchases. Unlike a debit card, the Step card processes all transactions as credit -- which means your child can build credit safely without having to worry about overdraft fees or accruing interest. We like that Step offers direct deposit so your teen can send their paychecks directly to their account.
Your child can also earn rewards when using their debit card at select merchants. Step Black, which is free to teens with direct deposit (otherwise, it's $5 a month) also lets them round up purchases to the nearest dollar and add the difference to a savings goal. If they use direct deposit to add $500 or more per month to their Step Black account, your child can earn a 4% APY on balances up to $1,000,000.
But there's a major drawback to consider. Step makes it clear that it shares your personal information with business partners to serve up product or service offers based on your child's data. Step's privacy policy says you can opt out, but you'll need to contact the company directly.
Minimum age : 13 Monthly fee : None Free trial : None ATM fee : None Purchase fees : None Axos' First Checking account teaches teens (ages 13 to 17) to use a debit card. Your child can use the account to send money to people and vendors and to pay bills. It also offers 0.
10% APY, so your child can earn some interest on their balance. We like that there are no monthly maintenance, overdraft or nonsufficient funds fees, plus teens can get up to $12 in domestic ATM reimbursements per month. But there aren't many other perks geared toward rewards and allowances.
Parents can manage the teen's account from the mobile app. This will allow you to monitor spending, control access to the debit card and set alerts. Axos does share your personal information with other financial companies to market products and services to you, but you can opt out of targeted affiliate ads.
Minimum age : 8 Monthly fee : None Free trial : None ATM fee : None Purchase fees : None If you're looking for a card that your kid won't outgrow when they turn 18, the Capital One Money Teen Checking is a good option. It lets teens keep their original account or open a 360 Checking account and transfer their balance. The Money Teen Checking can link to an external bank account, which means parents don't have to have a Capital One account themselves to transfer money to their kids.
Parents also have the option to enable Zelle access so kids can send money quickly. Also, the Capital One card doesn't charge foreign transaction fees, which can come in handy if the kiddo is traveling overseas. Minimum age : 6 Monthly fee : None Free trial : None ATM fee : None Purchase fees : None Chase offers two types of checking accounts with debit card access for youth.
Parents must already have an existing Chase checking account to open an account for their kids, but neither account charges a monthly fee or requires a minimum balance. The Chase First Banking account is available to children ages 6 to 17. It includes useful features that parents will appreciate, such as spending controls, savings goal tracking and a recurring allowance option that can be paired with a chore list.
The Chase High School Checking account is for kids ages 13 to 17. It offers more freedom -- such as account alerts instead of parental spending controls -- and provides direct deposit, mobile check deposits and Zelle transfers. One downside is that you and your child must go to a branch to open the account in person.
There are a number of debit cards for kids that don't charge membership fees, including Step and Axos First Checking. Paid services may offer more features, though. Companies reserve the right to change how they use collected data at any time, so it's a good idea to keep track of your account's privacy policy and use of targeted ads shown to your child through the app.
Consumer protection laws govern aspects of what companies can share, but not all. Once you've chosen a product, read the fine print carefully to make sure it aligns with your comfort level. Minors are prime targets for identity theft , mainly because parents often don't detect a problem until their child begins working and filing tax returns .
Although most debit cards for kids collect only the custodial account holder's SSN, it's still prudent to look for signs of child identity theft, including debt collection calls, bills or credit card applications that appear in your child's name. The FTC outlines steps to take if you suspect identity theft, and Experian offers a free ID scan service to see whether your child's SSN is active on any credit accounts..
