Choosing the Right Debit Card for Teens

Jolly

Parents need to teach their children about the importance of responsible money management when they’re young. A bank account and debit card are essential in a digital world. However, many debit cards are on the market, making it challenging to determine which one is right for a teenager. Here are five questions to help you choose the right debit card for your teenager.

What’s the Best Age for a Debit Card?

One question often comes up is when is the best time to get a bank account and debit card for a teenager? The answer depends on the child’s level of responsibility. A bank account with a debit card is a good idea for most teenagers around age 13 or 14.

What Are the Different Banking Account Types for Teens?

There are three types of bank accounts for teenagers:

Minor account – this is an account for children too young to open a regular bank account. These accounts have restrictions on the transaction types that can be made and the amount of money available to withdraw.
Teen checking account – this is a regular checking account that a teenager opens. This type of account has more flexibility than a minor account, but still has some restrictions.
Teen saving account – this is a regular saving account opened by a teenager. It offers more flexibility than a minor account, but less flexibility than a teen checking account.

Different institutions might offer other levels or special accounts for teenagers, so it’s essential to shop around.

What Are the Fees Associated with Teen Accounts?

The fees associated with teen accounts vary depending on the account type. Minor accounts typically have no fees, while teen checking and savings accounts may have monthly maintenance fees, ATM withdrawal fees, and other fees. It’s necessary to read the terms and conditions of each account carefully to determine what costs are associated with it.

What Are the Minimum and Maximum Deposits for Teen Accounts?

The minimum and maximum deposits for teen accounts vary depending on the account type. Most minor accounts have a minimum deposit of $5. Teen checking and savings accounts typically have a minimum deposit of $25. These rarely have a maximum other than FDIC protection. However, these amounts vary by institution.

What Kinds of Transactions Can Teens Make with Their Accounts?

Transaction types for teen accounts also vary depending on the type of account. Minor accounts typically allow for deposits, withdrawals, and transfers between accounts. Teen checking and savings accounts usually allow for the same transactions and the ability to write checks and use a debit card.

It’s crucial to find an account that best suits your teenager’s needs. By asking the questions listed above, you can make an informed decision about which account is right for them. If you have questions before making a final choice, speak to the institution’s customer service department. A representative can help you choose the best account for your teenager.