Debit cards for kids

A kids debit card can be used by your child to make purchases in-store or online and to withdraw cash from ATMs. This could be a convenient tool to help teach them about money. We break down some pros and cons, and what is available.

Can I get a debit card for my child?

Yes, there are a number of Visa and Mastercard debit card options for kids and teenagers. However, your child will usually need to meet minimum age requirements as set by the provider. Some providers offer kids debit cards for children as young as nine years old.

If your child is under a certain age, the provider may require a parent or guardian to be present to open the account. Otherwise, your child may be able to apply for an account by themselves online or at a branch if they meet age requirements.

How do debit cards for kids work?

Debit cards for kids work in the same way as regular debit cards. They are linked to an everyday transaction account and can be used to make purchases in-store or online and to withdraw cash from ATMs. The transaction account may be a regular account or a specific junior or youth transaction account. Some accounts have parental controls, so you may be able to monitor your child’s spending, set card locks and weekly spend limits. Most providers also waive monthly fees for kids accounts.

What is an alternative to debit cards for kids?

An alternative to debit cards for kids are prepaid cards for kids. Well known examples include Spriggy, ZAAP, FLX and Kit. Prepaid cards are similar to debit cards but they are not linked to a transaction account. Instead, money is loaded onto the prepaid card and children can only spend what is on the card. Parents and kids can monitor spending via an app and parents have access to parental controls. The downside of these cards is that they usually charge a monthly or yearly fee. That means they could be more expensive than a kids account with a linked debit card and no monthly fee. However, as the products specialise in this area, there could be features that other types of accounts do not offer.

Which debit card is good for kids?

Whether or not a debit card is good for kids depends on a range of factors particular to your circumstances, such as:

• your child’s age
• the product’s rules and fees
• what types of features you want, such as the level of parental controls
• how you plan to use it, such as how you will deposit money in the account and if you are concerned about accruing interest.

To give you an idea of what’s available, we’ve summarised what is on offer from the big four banks at the time of writing:

Debit card options for kids and teenagers

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Source: Provider websites on 07/07/2023.

CommBank and Westpac are currently the only providers out of the big four banks that provide parental controls on its account. Through the CommBank app, parents can monitor their child’s transactions, change their weekly spend limit and lock their card or payments. Similar parental controls are also available with Westpac through Westpac Online Banking.

Of course, there are a range of other providers that offer debit cards for kids and teenagers aside from the big four. You can compare a wider range of transaction accounts using Canstar’s comparison tables:

Compare transaction accounts

As an alternative, we’ve also summarised the two popular prepaid cards on offer for kids and some of the main fees charged.

FLX vs Kit vs Spriggy vs ZAAP comparison

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Source: Company websites on 07/07/2023. ~Fees listed do not include foreign transaction fees or currency conversion fees charged by the provider; or merchant fees charged by the seller, to cover card payment network fees. Kit information updated on 18/9/23.

We haven’t listed all the fees that you may be charged, so make sure you check the company websites so you understand all the potential fees and consider reading documents such as the Target Market Determination (TMD) and terms and conditions for more details.

Pros and cons of kids debit cards

Whether or not you decide to get a debit card for your child is a personal decision. Some of the pros and cons you might like to consider include:

Pros

• It may be safer than carrying cash and you may be able to lock the card if it gets lost or stolen.
• You can transfer money to your child as needed, which could be helpful in emergencies.
• You may be able to monitor your child’s spending and access parental controls, depending on the card.
• It could help teach your child about managing money. You could also consider opening a linked savings account to teach them about savings.

Cons

• There are minimum age limits, so your child may not be eligible for some accounts or debit cards.
• Fees could apply. For cards attached to bank accounts, although the monthly account fee is normally waived, other fees may apply. For prepaid debit cards, there could be fees involved with downloading the app, as well as account keeping fees and other charges.
• Depending on the parental controls of the app or account, you may not be able to control use of the card, such as adding spending limits or restricting certain merchants or sites. It’s a good idea to compare features of the provider’s app, as well as the type of account or service on offer, before signing up.

Explore further:

Can I open a bank for my grandchild?

Opening an Investment Account for Kids

Cover image source:  Jihan Nafiaa Zahri/Shutterstock.com.