Teen Debit Card Suggestions?

[kdonnel]

I don't believe a 14 year old can be added to your credit card account. We added our son the minute he turned 18, but he had to be 18 before we could do it. Also, I only want our daughter to be able to spend HER money and not use my card to purchase things she might not have the money to pay me back for.

Depends on the bank.

Bank of America, Capital One, Chase, and many others have no age requirement.

American Express is 13.

 

[connorlevismom]

As an adult I do not use a debit card at all and I would never give one to a child. I have heard so many horror stories about debit cards, even those who are geared towards kids that have supposed safeguards. I also work in online retail and I handle frantic inquiries from people who don't understand the ins and outs of debit cards. Credit cards just offer so many more perks, options and protections and faster customer service (not necessarily better, but more expeditious resolutions). I would get a credit card if at all possible.

People have to be 18 to get their own credit card. I am not willing to link her to my credit card because then she is not using her own money, she is using mine and then paying me back.

 

[amylevan]

I know the Canadian banking is more regulated and secure than the American system.
Majority of Canadians use debit cards and have for 30 years now.
I’m taking it that debit cards are very different in the US.

I don’t think they are. I would venture a guess that most Americans also have one. I don’t use mine much anymore because I’d rather rack up rewards, but I do have one. Lord knows I’m not writing a check anymore.

And the funds are insured and you are not liable for things if stolen. I suppose it’s possible that my card be stolen and checking account drained right as my mortgage is due, but I have a linked savings account in the event of an emergency, and the stolen money would be recovered eventually.

 

[kdonnel]

I know the Canadian banking is more regulated and secure than the American system.
Majority of Canadians use debit cards and have for 30 years now.
I’m taking it that debit cards are very different in the US.
Extremely secure here.

This would never happen with a credit card.

https://toronto.ctvnews.ca/ontario-...3k-after-losing-debit-card-rbc-says-1.6296920

 

[kdonnel]

I don’t think they are.

Canada requires a pin for most if not all debit transactions.

The US banking industry is afraid that the average US consumer is too dumb to know the difference between a credit card cash advance that requires a pin and a debit card pin transaction.

 

[CdnCarrie]

This would never happen with a credit card.

https://toronto.ctvnews.ca/ontario-...3k-after-losing-debit-card-rbc-says-1.6296920

If it made the news in the 4th largest city in North America it’s probably not very common.
Once in the media I’m sure the bank reimbursed her at least partially.
Now etransfer can be hacked so I only do small amounts.

 

[QueenIsabella]

My kids already had savings accounts with Wells Fargo. When they got jobs, we added a checking/debit account. They are able to easily transfer money between the two accounts.

In addition, when DD20 turned 18, she got a low-limit credit card with WF. I also added her as a user to my Target Mastercard. She pays for her own stuff with the credit or debit card, but can use the Target card for Mom-authorized purchases (like doctor co-pays).

My kids do all their banking by phone. Except cash tips--then, they use Bank of Mom to get rid of their $1 bills. They periodically deposit $100 or so in $20 bills at an ATM.

I never check on balances for either DD20 or DS17. However, DS26 is autistic, and has impulse control issues at times. Once a week, he shows me his account balances on his phone. This is mostly to keep him honest--he has a certain amount of weekly cash, and also buys a weekly Play station gift card. That, and the occasional meal or drink at work, is all he spends on.

 

[kdonnel]

If it made the news in the 4th largest city in North America it’s probably not very common.
Once in the media I’m sure the bank reimbursed her at least partially.
Now etransfer can be hacked so I only do small amounts.

Credit and debit card fraud is NOT unique to the US, though we are winning.

https://wallethub.com/edu/cc/credit-debit-card-fraud-statistics/25725

47% of US cardholders experience fraud every year.
35% of Canadian cardholders experience fraud every year.

Fraud is still prevalent with pin based transactions.

 

[ronandannette]

Canada requires a pin for most if not all debit transactions.

The US banking industry is afraid that the average US consumer is too dumb to know the difference between a credit card cash advance that requires a pin and a debit card pin transaction.

By far not all. Tap function is active on all debit cards unless you specifically request that the bank disable it. Transaction amount limits can be set but normally default at $150.00. I'd venture to say the majority of us are happily tapping away daily - no pin required.

As to debit card fraud - about 10 years ago one of our cards was "skimmed" and the data stolen. It was used off-shore to remove thousands of dollars from our accounts, which our bank flagged and reported to us within hours of it happening. All we had to do was swear an affidavit that we were not in the country where the fraudulent withdrawals took place and the bank's insurance had the funds returned to our account within a few days. I'm not sure it would have been so straight-forward with a credit card company.

 

[tcufrog]

My older son has a Greenlight debit card and we've been pleased with that.

 

[tvguy]

I don’t think they are. I would venture a guess that most Americans also have one. I don’t use mine much anymore because I’d rather rack up rewards, but I do have one. Lord knows I’m not writing a check anymore.

And the funds are insured and you are not liable for things if stolen. I suppose it’s possible that my card be stolen and checking account drained right as my mortgage is due, but I have a linked savings account in the event of an emergency, and the stolen money would be recovered eventually.

The number of Americans without any bank account is at a record low, but still 4.5% don't have a bank account. "Unbanked" to use the politically correct term.
LOL. I have written two checks in the past week. One to my Life Insurance company, attempted to pay electronically but they have no system in place for anything put taking checks. Second to my dentist, who DOES take credit cards , checks and cash, but with cash and check I get a 15% cash discount.
My mom has been gone for 10 years now, and she accidentally used her debit card for a purchase of airline tickets. She had enough money to cover it in her checking account. But she cut up the card and told the bank to never send her another one. She did everything by cash, check or credit card. Generally she would get cash back when she wrote a check at the grocery store, of she would stop at the bank branch on her walk if she needed cash and just write a check there. I know some grocery stores here stopped taking checks this year, I know I have transitioned to using my credit card for grocery purchases for the rewards.

 

[tvguy]

I know the Canadian banking is more regulated and secure than the American system.
Majority of Canadians use debit cards and have for 30 years now.
I’m taking it that debit cards are very different in the US.
Extremely secure here.

LOL. Not sure if I want to go down THIS rabbit hole, but one of my cousins who lives in Vancouver would argue the Canadian system is not secure enough. Someone hacked into his banking accounts and locked him out. Changed all his personal information, security questions and passwords. And did it in a manner that prompted bank investigators at first to believe HE was the hacker, not the victim. Took him months to get is sorted out.

 

[ICF]

I don't believe a 14 year old can be added to your credit card account. We added our son the minute he turned 18, but he had to be 18 before we could do it. Also, I only want our daughter to be able to spend HER money and not use my card to purchase things she might not have the money to pay me back for.

Both of my kids were added to my Amex when they turned 16

 

[georgina]

When our kids got jobs as teens we had them each open a student checking account linked to ours at PNC. That way I could see their balance when I log into my account (but they do not see mine.) I can easily transfer money between accounts. Those accounts came with an ATM/debit card which they used a bit.

As they got older and graduated college the older 2 split their accounts off into individual ones. Youngest’s account is still linked to mine, she lives in San Francisco and there are no PNC branches there, but she doesn’t use brick and mortar banks much. She has a local bank account for ATM withdrawals

 

[slo]

When DD19 turned 16yrs old (when she started working) we opened a checking account in her and our name, and then she got a debit card for that account. We did this at the same bank as our accounts so we could easily transfer money into the account if needed (she spends her own money on any misc type items. When she’s home on college break she’s responsible for her own gas too) She also has her own credit card to our visa account for her to buy essentials and gas when at college.

 

[kdonnel]

All we had to do was swear an affidavit that we were not in the country where the fraudulent withdrawals took place and the bank's insurance had the funds returned to our account within a few days. I'm not sure it would have been so straight-forward with a credit card company.

A credit card would have been the same with one exception.

At no point would any of your money been missing for any period of time.

 

[_19disnA]

If someone is only 13 I assume they still live at home and aren't yet away at college. What exactly would they do with this debit/credit card? If the idea is to not carry around cash when out with friends, then I would get them a credit card instead. Which one doesn't really matter since likely they won't spend enough to make much in the way of points/credits. I would get one from the bank where you currently have your accounts. The bank might issue one with a small credit limit (like $250-500) to get them started.

You can always switch to a different one in the future based on spending patterns. Honestly, unless you charge large amounts on a regular basis the perks almost never amount to anything. I would only recommend debit card for use at an ATM to get cash. Have had way too many issues with my debit card and no longer use it for shopping.

Once they go off to college might be good to have a card associated with a bank near their college in case they don't have access to a car.

 

[ronandannette]

LOL. Not sure if I want to go down THIS rabbit hole, but one of my cousins who lives in Vancouver would argue the Canadian system is not secure enough. Someone hacked into his banking accounts and locked him out. Changed all his personal information, security questions and passwords. And did it in a manner that prompted bank investigators at first to believe HE was the hacker, not the victim. Took him months to get is sorted out.

There are a lot more banking options here now than there used to be, including a variety of on-line only institutions. This scenario wouldn’t happen though with a good, old-fashioned bricks-and-mortar bank where you deal in person at your own branch enough to know and be known. Probably not a lot of people do that anymore but it certainly has proved invaluable to us in several different situations over the years.

 

[amylevan]

For everyone who recommends giving their young teen a credit card, how are they paying their bill and learning to budget? Do you just hand them a card and pay their bills for them? If they don’t have a bank account, how can they manage their money easily?

I would think a debit card is how you teach basic budgeting, money in minus money out. It’s concrete.

 

[QueenIsabella]

For everyone who recommends giving their young teen a credit card, how are they paying their bill and learning to budget? Do you just hand them a card and pay their bills for them? If they don’t have a bank account, how can they manage their money easily?

I would think a debit card is how you teach basic budgeting, money in minus money out. It’s concrete.

My DD20 has both a credit and a debit card. She has a part-time job (money in) and pays her credit card bill by transferring it on the bank's app (money out). She rarely uses the credit card, except if she needs something NOW and doesn't have the amount in her checking/debit. When her paycheck lands, she pays the credit card bill immediately. She does get monthly statements, but just looks at them and says, "I already paid that."

I stay out of it, both for her and DS17. I do check DS26 statements weekly--I think I mentioned that he has autism and sometimes impulse control. The mere fact that I'm going to check helps to keep him on track--he's told me that.

I would watch closer for a child who was younger, or had shown issues in the past.

DD20 never uses the joint card without asking. It's mainly for emergencies--if she has a car breakdown, 100 miles from home, I want her to know she can get repairs done on my dime and make it home safely. We can work out any issues once she's back (i.e., should she pay for repairs).