Cards For Under 18
Teenagers who want to start sharpening their saving skills and become financially responsible can apply for debit
cards for under 18.
By law, a person under eighteen cannot take credit cards, loans or any form of credit. Debit cards for
under 18 on the other hand offer a "cool" solution to youngsters who would like to experience how it is to
handle and budget money.
Debit cards for under 18 are either linked to a savings account or pre-paid, thus it does not necessarily suggest
the use of credit. The main difference between regular debit cards and debit cards for under eighteen is that the
latter cannot be tied with accounts eligible for overdraft facilities. There are various types of debit cards under
eighteen, which includes the following: prepaid debit cards, debit card gift cards, debit cards linked with savings
accounts, and debit cards linked to an employee account.
The debit cards linked with savings accounts is the most common, wherein the teen's debit card is tied up with an
account in his name. Debit cards linked to an employee account is used when the working teen has an employer who
transfers money to his account via bank transfer. Debit card gift cards are analogous to prepaid debit cards where
it is not tied up with any specific account; however, it is only accessible until the full balance on the card is
consumed and cannot be replenished.
Prepaid debit cards for under 18, which can be used in shops or on the internet, are not linked to any specific
bank account, and have to be replenished occasionally to be useful. A potential benefit associated with the use of
this card is that parents can control the money-spending habits of young college students or teenagers. More so,
these cards cannot be used beyond a specific limit of money, which has been augmented previously by the user, and
thus not subjected to interest charges. This teaches teens to spend only what has been loaded on the card.
Granting a teenager a debit card has spawned a lot of argument whether it will be for good or for bad. However, the
consensus is that teaching teenagers how to handle money at an early age, would most likely help them develop good
financial habits. They would learn how to keep track of what they spend, and would realize that excessiveness would
quickly drain one's bank balance. It should be emphasized that debit cards for under 18 does not involve
loan facilities, thus it is a good early start for teens to learn responsible financial behavior.
Source: Credit Cards For People With Bad Credit Rating
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