Financial technology is evolving rapidly, affecting the way people manage their money. Cash is being replaced by digital wallets and cards, and younger generations are becoming familiar with these technologies early on. Debit cards for children and teenagers are a valuable tool for introducing children to the world of financial management, offering security and parental control. In this guide, we’ll look at what children’s debit cards are, their benefits, how to choose the right one, and how to teach your children financial responsibility through their use.
What is a Children’s Debit Card?
How it works
A children’s debit card is linked to an account into which parents can deposit money. The child can use this card to make purchases in stores and online, using the money available in the account.
Differences from prepaid/credit cards
Unlike a prepaid card, a debit card is linked to a bank account, allowing children to use their money without requiring constant balance loading. In addition, unlike a credit card, it does not allow overdrafting or borrowing money, making it a safe and educational solution for children.
Advantages of a Debit Card for Children
Money management training
Using a debit card helps children learn how to manage their money from an early age. Through its use, they understand the value of money, practice saving – find out easy ways to teach your child to save here – and develop responsible financial habits that will benefit them in the future.
Safety and parental control
Parents can fully control the use of the card through apps, receiving notifications for each transaction. They can also set spending limits and deactivate the card in case of loss, ensuring the child’s financial security.
Ease of transactions
The debit card allows for quick and contactless transactions, making everyday purchases easier for children. Also, using it for online transactions protects them from risks, as it does not allow overdrafts, borrowing money or kids unfriendly transactions.
How to Choose the Right Debit Card
Selection criteria
To choose the best card for your child, it is important to consider:
Parental control options: Choose a card that allows you to monitor transactions and set spending limits.
Accessibility and acceptance: make sure the card can be used in multiple stores and online platforms.
Educational features: Some cards like Woli offer tools that help children understand the value of saving and money management.
Costs and commissions.
Debit cards often have different costs, such as:
– Issuing and maintenance fees
– Maintenance and fees
– It is important to compare costs before choosing the right card.
The best options in Greece
In the Greek market, some of the most reliable options are:
Woli: Founded in 2021, Woli is a Greek startup that offers a VISA debit card and a mobile app specifically designed for children and teenagers aged 8 to 18. Available in Greece, Cyprus and Italy, Woli has educational features, enabling young users to learn smart money management under the supervision of their parents.
MyAlpha Vibe. It allows parents to monitor and control their child’s transactions through an app.
Tips to teach your child financial responsibility
Set limits and rules
Together with your child, set ground rules for using the card, such as a monthly spending limit and the types of purchases allowed.
Teach savings using the card
Encourage your child to dedicate a percentage of their money to savings, helping them to develop good financial habits.
Use money management apps
Many children’s debit cards such as Woli have apps that offer interactive tools for learning basic financial concepts.
Frequently Asked Questions (FAQs)
What is the minimum age for a child to get a debit card?
The minimum age varies depending on the provider, but is usually 8 years old.
Are debit card transactions safe for children?
Yes, most debit cards offer high levels of security, with parental controls and protection against overspending or unsafe transactions.
Many children’s debit cards such as Woli have apps that offer interactive tools for learning basic financial concepts.
Children’s debit cards are an important tool for introducing children to money management, with complete parental control and security. By choosing the right card and implementing the right practices, you can help your child develop good financial habits from an early age.
Download the Woli app on Android or iOS now, follow the steps to add your child and get 30 days FREE on the premium BASIC subscription plan and a FREE physical Woli card!
