While traditional bank accounts start offering debit cards from the age of 9, prepaid debit cards, such as Kit, are now available for children from 5 years of age.
While 5 years old seems very young, it’s important for children to be given the opportunity to build financial experience by paying for things themselves. The Kit prepaid cards have a variety of parental controls that makes it safe for younger children to use them occasionally, in the same way they may have been given a $10 note to buy milk in the past. These controls include:
- Not being able to spend more than is put on the card – any money in savings stacks cannot be accessed by tapping the card.
- Not being able to spend on merchant categories which are for 18+ (e.g. alcohol, gambling)
- Ability to lock/block the card in real-time – handy in the instance of a lost card
- Real-time notifications on spending
- Ability for parents to block specific merchants.
Parents and carers of children using Kit also find a prepaid debit card for their kids useful to:
- Pay for online gaming using the Kit card, to prevent overspending on parents’ cards. This puts children in charge of budgeting their own online game spending
- Allow the child to use the card when spending their pocket money to pay for toys or outings, or to spend money received as a birthday present
- Paying for lunch at the school canteen if it has gone cashless
- Paying for lollies/food if going out after school
The biggest risk with a card is the risk of losing the physical card, although as children start to have their own devices with digital wallets, this becomes less of a risk.
Kit makes it easy with a prepaid debit card that teaches kids about money management through exciting quests and rewards.
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Read the T&Cs, FSG, PDS and TMD at heykit.com.au/legal and consider if Kit is right for you. Issued by Hay Limited. Fees and charges may apply. Any advice given is general in nature.