Debit 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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