Debit Cards for Teens

Compare the following features when considering which type of debit card is the best for your teenager: 

Fees 

Most standard debit cards issued by the major banks are fee-free for kids and teens. However, it’s important to check if a fee is charged if the card is lost and a replacement needs to be issued, as well as if any account-keeping fees are charged for their linked transaction account. 

In contrast, prepaid debit cards can come with membership fees, account-keeping fees, reload charges and cancellation fees. For example, Spriggy charges a $30 annual membership fee and a $10 cancellation fee, while ZAAP charges a $2-a-month account-keeping fee and a 1.5% reload fee. 

Spending controls 

Some debit cards come with the ability for parents to set up spending controls using their online banking or mobile banking app. These controls may be more appropriate for children younger than 13, rather than debit cards for 14 or 15-year-olds. They permit the parent to set controls which limit spending on the card either on a daily, weekly or monthly basis. All debit cards by their nature limit spending to the amount of money that is in the linked bank account, but this feature enables parents to protect against their children spending all of their money at once.  

Limits on how the card can be used 

As well as spending limits, some debit cards permit control over how the card can be used and what it can be used to purchase. For example, it’s possible to stop the card from being used for online shopping. Controls can also include a ban on buying alcohol, tobacco or gambling products. Some debit cards allow parents to block in-game purchases to prevent gaming splurges. Others also permit limits on ATM cash withdrawals, either by frequency of use or the amount of cash that can be withdrawn in any one transaction. 

Security and card locking 

It’s a fact of life that tweens and teenagers are in the process of learning how to care for their possessions, so losing cards or having them stolen is unfortunately common. Check how easy it is for your child to lock their card once they realise it’s lost or stolen. Locking a card should be a simple process either through online banking or a mobile app. 

Additionally, check the card lock conditions to make sure it’s effective immediately and that no further transactions can take place on that card once it’s locked. It’s also important to check out the process for unlocking or re-issuing a card once it’s been locked. 

Tracking tools 

Another important comparison aspect of debit cards is the ability to track spending and check the account balance. Some mobile apps have a ‘spending tracker’ which automatically categorises spending into different areas. For example, it might have separate categories for takeaway food and drinks, ATM withdrawals, online shopping and so on. In this way, your teenager can see how they are spending their money, which is an important aspect of learning to budget and save for future goals. 

Parental view 

Many debit cards permit parents to view the transaction history of their teen’s debit card up to a specific age limit, often 14 or 15 years old. After this age, cardholders are often able to remove the parental view without the permission of their parents. If parental control of your teenager’s debit card is important to you, check and compare the age at which parental controls can be lifted, either with or without the parent’s consent.