Debit cards for teens

[kdonnel]

Why do you say no one should have a debit card? My life is 100% debit card. If I didn't have one and needed money outside of regular banking hours do you suggest I’m just sol?

I have an ATM card that does not have a visa or MasterCard logo if I need cash.

A debit card is too problematic if compromised.

Your account is cleaned out via your debit card the same day your mortgage, water bill, and insurance are paid, all those bounce. Your now having to explain to all three why you missed a payment. Sure the bank will give you your money back but you have a lot of work to do and have to hope that your creditors are nice and don’t report you as not paying to the credit bureaus.

With a credit card you open your bill, see thousands of fraudulent charges, make one call and they are all removed.

Debit cards carry too much risk when compared to a credit card.

 

[mjkacmom]

I have an ATM card that does not have a visa or MasterCard logo if I need cash.

A debit card is too problematic if compromised.

Your account is cleaned out via your debit card the same day your mortgage, water bill, and insurance are paid, all those bounce. Your now having to explain to all three why you missed a payment. Sure the bank will give you your money back but you have a lot of work to do and have to hope that your creditors are nice and don’t report you as not paying to the credit bureaus.

With a credit card you open your bill, see thousands of fraudulent charges, make one call and they are all removed.

Debit cards carry too much risk when compared to a credit card.

I also have credit cards and an ATM card for this reason.

 

[Bianca and Bernard]

My daughter is going to a baseball game tonight with church youth group and I went to the ATM today to get her some cash for snacks and it got me to thinking about getting her a debit card. She's 14. Just looking for general advice on when and how people handle it.

My kids have had checking accounts since they were 13. Back in the day, I had to go to the bank to transfer money, ha. Now, with DS, I just transfer his allowance and school lunch money monthly and he has to budget. He's had 2 overdraws, one of which was caused by an app that he cancelled but they took money out again the next month (so the bank dropped the overdraw fee, and blocked the app) and he learned not to put things on auto-pay; the other we did cover, but he had to earn the money to pay us back for the overdraft fee+ cover. No problems since then. He tracks his spending, spends the money on what he wants and pays for his own school lunches.

 

[Bianca and Bernard]

Hmm, I’ve had my kids checking accounts at different banks, and all required a parent on the account until 18. https://www.thebalance.com/bank-accounts-for-people-under-18-315365

I'm on DS's account. When he becomes an adult, we can go in and remove me.

 

[Sand Wedge]

Over here kids usually grow up with Solo cards, at about the age of 12. Simple thing. Works in ATMs, most stores, many outlets... but you can't go overdrawn and you get monthly statements and the ability to wire payments into the account. Simple life lesson in money

 

[Imzadi]

I have an ATM card that does not have a visa or MasterCard logo if I need cash.

A debit card is too problematic if compromised.

Your account is cleaned out via your debit card the same day your mortgage, water bill, and insurance are paid, all those bounce. Your now having to explain to all three why you missed a payment. Sure the bank will give you your money back but you have a lot of work to do and have to hope that your creditors are nice and don’t report you as not paying to the credit bureaus.

With a credit card you open your bill, see thousands of fraudulent charges, make one call and they are all removed.

Debit cards carry too much risk when compared to a credit card.

I don't get the difference. Maybe it depends on the bank you use? I also use my debit card almost everywhere. I've had it hacked a few times over the years. My bank has ALWAYS returned all my monies and treated it exactly with the same precautions & protections as usually reserved for credit card. They generally call right away when the Fraud Detection department notices a suspicious charge and freeze my card right away. I usually find out when I'm shopping & my card is frozen, if I hadn't gotten a call yet. Then I have to go through all the questions, "Did you make this charge? What about. . ."

Only last Nov., did I start having problems with this bank, HSBC. They had a major data breach and my card info got hacked TWICE in 6 weeks. Each time they gave me my money fully back. And now their security is so tight, sometimes the tellers & CS reps can't access the info in their own systems! I couldn't even log on today, to check my account from my pc. I had to do it on my phone, which doesn't list info as detailed as I needed.

While I was waiting for a new debit card, (and ultimately deciding to leave that bank as it's a joke to bank there now,) I switched to using my credit card from a different bank. I forgot I paid a medical bill & some other bills with it and started, like with my debit card, to use it for other purchases. I hadn't set up an online account with it yet as I usually don't use it much. It's my "emergency card", and necessary only when I rent a car, which don't take debit cards. So I hadn't checked my charges to see that my total charges went over my limit. The bank froze my account and wouldn't pay out the charges, till I verified all those charges were mine and I paid off some to open my credit line again.

So, both cards work pretty similarly to me, in terms of fraud detection and freezing the money, bounced payments. I DO however, get reward points for using my charge card.

 

[kdonnel]

I don't get the difference.

The difference is that with a debit card it is YOUR money that is in limbo while it is stolen from your account. While the fraud departments are good they do not notify on all fraud. There will be times where YOUR money is removed from the account and that missing money will adversely effect bills you are paying.

With a credit card it is THEIR money that is in limbo.

I would always prefer it be their money instead of my money.

 

[Sand Wedge]

One advantage of a credit card over a debit card (where you have an arranged overdraft) is that over here, you are offered Buyer Protection. If someone hacks your account or doesn't deliver the goods promised, the credit card company is obliged to pay up and foot the bill. The question stands - do you want the power of an overdraft in your kids' hands?

 

[Kathryn Merteuil]

I figure it is safer than cash. With the online apps and all, they can monitor the balance. I would suggest turning off any overdraft capabilities.

 

[Kingdome8]

Here kids could open chequing account at age 12. Before age 12 it had to be joint with an adult.

Wow what state are you? That’s young. Here you have to be 18 on your own. Or 16 to have joint checking with an adult. Savings with an adult at any minor age.

I let my 15 year old use a debit card of mine from a bank I barely use. When she’s 16 she can add her name and get own card. No one has ever turned her down when using card in my name.

 

[pxidst119]

I opened one with my kids at 14. I love it because it’s so easy to keep up with their allowance. When my DD went on vacation with a friend, I liked that I’d be able to transfer money to her account if she needed it without sending her with too much. Also, opening the account gave them a place to put their babysitting money and birthday money etc.

 

[Kingdome8]

Hmm, I’ve had my kids checking accounts at different banks, and all required a parent on the account until 18. https://www.thebalance.com/bank-accounts-for-people-under-18-315365

Correct that’s how my bank and most banks are.

 

[low-key]

That is about as good ideal is bringing back gum cigars for grade schoolers

 

[CdnCarrie]

Instead of getting them a debit card a much better option is to add them as an authorized user of one of your credit cards.

That helps them build a credit history and does not expose a checking account to debit card fraud. No one should have a debit card.
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?? I’ve had a debit card since 1993. Never had an issue. Our bank card is our debit card. Not sure how you would access your account without it?

 

[CdnCarrie]

Wow what state are you? That’s young. Here you have to be 18 on your own. Or 16 to have joint checking with an adult. Savings with an adult at any minor age.

I let my 15 year old use a debit card of mine from a bank I barely use. When she’s 16 she can add her name and get own card. No one has ever turned her down when using card in my name.

Canada
My 12 year old just opened his account a few months ago, I have no access to it. I don’t even know his account number.

Actually he opened 2 accounts- a chequing and a savings.
Not even sure why it’s called chequing as it didn’t come with cheques and I don’t he will ever write one. They are basically obsolete here.

 

[GoingSince1990]

Our 13-year old daughter has a credit card as an additional cardholder on our account. Much safer than giving her cash as we are fully protected if she loses it.

 

[GoingSince1990]

Canada
My 12 year old just opened his account a few months ago, I have no access to it. I don’t even know his account number.

Actually he opened 2 accounts- a chequing and a savings.
Not even sure why it’s called chequing as it didn’t come with cheques and I don’t he will ever write one. They are basically obsolete here.

In the US i write vastly fewer checks than I used to, but quite a few old-school electricians, plumbers, handymen etc. still like to be paid that way.

 

[CdnCarrie]

In the US i write vastly fewer checks than I used to, but quite a few old-school electricians, plumbers, handymen etc. still like to be paid that way.

The cheque thing has been discussed on here before. Seems like Canada is a bit further ahead with the cheque less society than the USA. For example Walmart and grocery stores do not accept cheques here and haven’t in several years.

I doubt highly my 12 year old will ever write a cheque in his lifetime.

For those that have their teens on credit card only do the kids ever have issues using credit to pay for stuff like fast food.

And man it’s annoying my autocorrect keeps trying to make me spell cheque wrong.

 

[4kids4karen]

All four of mine got their own Youth Checking at age 10. We use USAA Youth Banking that has no fee's like some of the other programs (i.e. Visa Bucks and similar programs.) Even my friends bank charged fees for Youth Banking that mine does not.

 

[tvguy]

My bank statement says "Thank you for being a customer since 1962" so I must have been 5 when that account was opened by my parents. But they were never on that account.