The Importance of Helping Your Kids Build Credit

credit card for kids

Every parent wants to prepare their child for a future and comfortable life. If you still need to provide your children with your property, children can get into debt if you teach them how to get money easily.  From buying a car to their first house, children need to know how to get and use credit. The best way to do this is by getting them a credit card for kids.

You should consider a few things before giving your child a credit card. One of the most critical factors is your child’s age. You wouldn’t want to give a credit card to a toddler, but a teenager could benefit from having one.

Another factor is whether or not your child has any income. If they don’t have an income, they may be unable to handle the responsibility of paying off their monthly debts. It would be best if you only gave them a credit limit they can realistically handle.

It’s also important to consider the type of credit card you will give them. There are secured and unsecured credit cards for kids. A secured credit card requires a deposit, which acts as collateral if your child doesn’t pay their bill. This is a good option if you’re worried about your child’s ability to handle credit.

An unsecured credit card doesn’t require a deposit but has a higher interest rate. This is because there’s more risk involved for the lender. The lender could lose money if your child doesn’t make payments on time.

Credit cards for kids offer the possibility of investing, saving, earning, and donating money within the application. Everything is somewhat reminiscent of the adult world, but in this case, the parents have their children’s backs and cannot go into the red.

There are various ways that your children can learn to be socially aware and balanced with their use of money.

Money Does Not Come From Magic Boxes (ATMs)

You have to explain to children how the world works and that parents have obligations to fulfill to afford them an everyday life. 

And that there is a difference between what is more necessary to spend money on, such as rent, bills, food and drink, clothes, and shoes. This does not come from magic trees but from parents’ effort and hard work.

Other expenses include eating at a restaurant, buying a new toy, or going to the movies. Children must know that this expense is not considered essential and that making them is not always possible.

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Cards As a Tool for Learning Financial Literacy

What prepaid debit cards offer is the ability for parents to open an account for their children over which they have complete control. Children have tasks and responsibilities that they must complete within a given time limit. 

Each task table can be adapted personally to each family. Children can learn through this card how to save money, invest in shares, donate money and earn through various bonuses and payments. 

Parents can establish bans on companies, brands, and sites they consider unsuitable for their children.

Savings & Put Them On The Payroll

Encourage your children to save, teach them to be patient, and to wait for a specific moment. 

Older children always need more money, so why not use this application to put your children on the payroll and thus pay them additional bonuses, pocket money, and payments from a third party? 

Encourage small entrepreneurs to help their neighbors, mow the grass, take out the garbage, go shopping, and so on. Children sell lemonade in the summer, and in the winter, they clean the neighborhood and collect it with their owl friends. 

The innovation of BusyKid, for example, is that a third party can deposit money into the account with a QR code, which is the perfect way to send a gift for birthdays, holidays, and various occasions.

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BusyKid is one of the leaders in this industry, and they have won numerous awards. They offer more than a chore and allowance application. They offer a savings plan, the possibility of investing in global stocks, making and receiving payments, and charitable donations. 

Thanks to BusyPay, it offers the option of bonus payments, third-party payments with a QR code, pocket money payments, and donations to various charities. 

Parents control the child’s account and create particular tabs with tasks that the child wants to complete. 

There is no minimum age for this option. With the option of 5 cards for $3.99 per month, the annual price is $38.99, where you will save 20% of your money. 

It is one of the first choices of parents and has ensured financial independence for many children and prepared them for the future.


GoHenry is also a prepaid debit card for its users aged 6 to 18 years. This is a slightly more expensive option; the price per child is $3.99 per month. 

The application is designed to control the performance of tasks and obligations within the given time limit and to maintain the limit of how much the child can spend on the account. 

Kids can spend, save and donate within a dedicated club within this app. Here there is a method of locking savings, not the possibility of accessing money.


Copper debit cards are one of the newer ones on the market, but they are slowly climbing toward the top. The age limit is from 13 to 19 years, and it is entirely free. It is one of the most downloaded apps in recent times.

This is one of the reasons why their demand has increased because it is available to everyone. Here you check into a digital account, you can monitor your activity in real-time, and send and receive money between linked accounts.

You can use it to shop online and in stores and get cash at ATMs. There is a spending limit that the parents set, and they have control over the account. 

Wrapping Up

In short, these are just some advantages parents have when giving their children a credit card. It’s important to consider all of the factors before making a decision. Give your child a credit limit they can realistically handle, and ensure they understand the responsibility of using a credit card. With the proper guidance, your child can learn how to use credit responsibly and build good financial habits that will last a lifetime.

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