Positive financial habits acquired in adolescence will serve your child well through adulthood. As such, many parents take steps to teach their children about responsible saving and spending by setting them up with a bank account or giving them a weekly allowance. In the same token, many parents wonder when the time is right for their children to receive their first debit card. Below are a few factors to keep in mind to set your children up for financial success. 

What Are the Benefits of Debit Cards? 

Most kids receive their first debit cards in their teens. This often coincides with when they get their first job and need to set up direct deposit or cash checks. A checking account is ideal in this case, providing a safe place for your child’s money. With a debit card, your child can easily access their earnings, either by using ATMs, making point-of-sale purchases, or shopping online. 

A debit card offers more than just convenience, however. It also gives your child a crash course in financial planning, from keeping their card and PINs secure to checking their balance to ensure they have enough to make purchases. In this case, it’s best to have overdraft service turned off so your child can’t withdraw funds that aren’t there. Also, keep in mind that if your child is under 18, you’ll likely need to co-sign on the account. 

What Are the Pitfalls of Prepaid Cards? 

You might think a prepaid card, which requires funds to be added before it can be used, is the safer option for kids. Bear in mind that many prepaid cards entail numerous fees. As a result, much of your child’s money may go towards these fees. Prepaid cards also fail to provide the solid financial lessons that debit cards do. 

You might also think that having a checking account is a safer bet since your child won’t be able to access money as easily. While that’s certainly true, your child will also miss out on crucial financial lessons. Before setting up the account, have a discussion with your child about the necessity of financial responsibility. 

As a trusted member of the community for more than eight decades, First State Bank in Russellville, AR, can help you provide crucial financial lessons to your family. With a $100 minimum deposit, your child can open a checking account and receive a free debit card. They won’t be subject to a monthly service charge and will be privy to unlimited check writing. They will also have access to convenient online banking, allowing them greater control over their money. Stop by their location today, or call (479) 498-2400 for more information on their services. You can also visit them online to see more checking account options.