Meet the "swipe kids." Without the need to handle cash, children as young as 5-years-old can make purchases with just one swipe of a credit or debit card. While many parents like the idea of a cashless allowance-giving process, skeptics still abound.
The proliferation of child credit cards made it easier for many parents to provide for their kids' needs without having to go to the bank and get cash. Many believed that entrusting a debit card to their kids, whether in middle school, high school or college, gave their kids the opportunity to learn how to handle money.
Never giving my child a credit card in college. Someone just paid me $45 to drive them from the BJC to South Halls. #Uber #SPD16
— Kevin Horne (@KevinHornePSU) February 28, 2016
"It's a personal decision," said Shirley Malloy, Toronto-Dominion Bank associate vice-president, in Macleans. She went on saying that children and pre-teens enjoy benefits when they have their own debit cards.
Benefits Of Owning Debit Cards
According to Malloy, by giving child debit cards to their sons or daughters, parents have the opportunity to "take an active role" in the spending habits of their children. They also get to influence their kids' saving habits.
Another thing that Malloy pointed out when child debit cards are given to children is that they learn to be independent. They also inculcate a sense of responsibility as they learn to protect passwords. Thriftiness will also follow as children will learn to think before they start spending.
Debunking Fears Of Raising An Improvident Child
Forbes said that when you introduce your kids to a credit card or debit card the right way, your kid will benefit from it later on. The experience with these cards will help them avoid credit card blunders when they become adults.
Many parents who started their kids early with credit or debit cards attest to the efficacy of this process. They said in Macleans that their children grew up to be better money handlers, which is the exact opposite from the fears of raising a spendthrift
Like what Malloy said, the act of giving your child a credit or debit card will always be a personal choice. The best way to go about it is to weigh the pros and cons and follow your parenting instinct.
