Illustration by R.J. Matson; Debate photos courtesy of families; Shutterstock.com (background)

Should Kids Have Debit Cards?

December 19, 2022

You don’t need to carry bills and coins to have money in your pocket. Some kids keep their money on debit cards. These plastic cards are linked to a bank account. They allow people to access their money to buy things, using a password called a personal identification number, or PIN.

Many parents think debit cards are convenient. They can instantly send money to their kids’ accounts—even if they don’t have cash. Also, if kids lose their debit card, their money is safe—as long as no one knows their password. But lost cash is often gone forever.

However, other people argue that paying with a card instead of actual money can lead kids to make poor decisions.

“You might be tempted to buy things that you do not really need,” warns Walter Andal, the author of Finance 101 for Kids.

Here’s what two of our readers think.

My parents give me an allowance on my debit card for doing chores. Having it is easier than carrying cash. All my money is on the card.

I use a debit card app to track my money. I divide it into three categories: spending, saving, and giving. I’m able to set a limit for how much money I’ll spend. I also can watch my savings grow every week. Having a debit card is teaching me how to be responsible for my money, which will prepare me for the future.

I sometimes earn money by having bake sales or helping out with chores. And I like to get paid in cash!

Some people say debit card apps are the best way for kids to manage money. I disagree. With a debit card, you can swipe and not think about how much you’re spending. It’s easier to stick to a budget when you have only a $5 or $10 bill in your pocket.