Kids and debit cards: The advantages and disadvantages

These days, there is an increasing amount of transactions that are completed online. People are moving further and further away from using cheques and cash to pay for things, and are instead utilising debit cards more and more. While you don’t want to provide kids with a credit card, as they could quickly lose the run of themselves and ruin their credit score, it is important to start them early and inform them on how to effectively use debit cards.

It is a set of training wheels for future financial instruments and they can learn a lot about managing money by using debit cards. By doing your research and shopping around, you will be able to find the best type of bank account and debit card for the kids. However, just like with anything, there are not all advantages when it comes to using debit cards, there are also some drawbacks. Here we will look at both aspects of debit card for kids.

Kids and debit cards: The advantages and disadvantages



Debit cards a far more convenient than other forms of payment such as cash. You do not have to carry around large sums of cash or a specific quantity when you want to make a purchase. You will not have to go through the process of writing out a cheque or making a payment on a credit card in the future.

You can pay for something and have the funds immediately deducted from your account, all you need to do is swipe the card and enter your pin number. If you do need cash, you can quickly withdraw some form an ATM machine, rather than having to go to a bank to make a withdrawal.

Better for financial planning

It is a lot harder to go past your budget when using a debit card, as you can only spend as much as you have in your account. This stops you from building up high levels of debt and interest that you would have by making countless purchases using your credit card, which does not require you to have funds in an account.

Most debit cards for kids will not have an overdraft option, but if it does allow overdrafts, there are ways by which you can stop them. It is important to educate the kids as to which situations require them to use the debit card and when they should use other forms of payment.


There are a few different disadvantages associated with using debit cards. If you have a transaction that needs to be disputed, it can be harder to have it resolved, as the money has already left your account.

There are often a lot of fees when using debit cards, however many debit cards for kids will have little to no fees. There is a lot less protection against fraudulent charges, once a thief obtains access to your pin number. It is worth identifying banks that will put a hold on the debit card if a number of suspicious charges have taken place on your account.

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