HOUSTON – Does your teen want a debit card?
What you should know about helping kids manage their accounts.
We are increasingly becoming a cashless society, and it’s changing the way kids spend, and save, money.
Debit cards are popular among teens, but do you know how to help your child when it comes to handling a card?
Debit cards are convenient, but make sure you’re setting your teen up for success.
Choose an account with few or no fees, and with online monitoring.
Link the card to your child’s savings account to help him or her get in the habit of setting money aside.
Show your teen how to track the transaction with a smartphone or tablet.
Teach kids to hang on to receipts until the transaction goes through.
Tell your child not to share account information, and suggest that they take 60 seconds every day to check their balance.
In one study of college students, 12 percent said they never checked their account balances because they were too nervous.
You can also request text alerts if the account is running low.
Most important, take time to answer any questions your teen has about the new spending tool.
Prepaid debit cards are another option for teens, but some experts don’t recommend them because you generally can’t link the cards to your savings account and earn interest.
Also, prepaid cards often have hidden fees or get lost.