![]() ![]() Some prepaid cards offer the ability to sequester funds, he said, but the money usually doesn’t earn interest. Sean McQuay, a card expert with Nerdwallet, said he generally preferred a checking account with a debit card for teenagers, rather than a prepaid debit card, because the checking account could be linked to a savings account, reinforcing the habit of setting money aside for longer-term goals. The financial website Nerdwallet recently recommended several accounts for teenagers, including Alliant Credit Union’s Free Teen Checking and Capital One 360’s Money account. (Generally, to open a USAA account, you or a family member must have a current or former military affiliation.) Montanaro, a financial planner with USAA. “You can look over their shoulder and see what they’re doing,” said J. Parents can also set spending limits and receive text messages if their child exceeds them. Children have their own debit card, but parents can check spending online or on a mobile app. USAA offers a “Youth Spending” account, available to children 9 and older, when their parents open the account. ![]() access and the ability to set spending limits. Parents should look for features like no or low fees for funding and maintaining the account, online account monitoring, convenient A.T.M. Some institutions don’t permit minors to have debit cards under their own name until they are at least 16, but others offer them to children who are 13 or even younger. You can start by asking if your own bank or credit union offers an option for joint accounts with teenagers, said Laura Levine, chief executive of JumpStart Coalition, which promotes youth financial literacy. The cards give children control over their own cash but allow parents to monitor the spending and offer guidance as needed. But as teenagers, they start to spend more - lunch while on a field trip, a movie with a friend - and may need an account that lets them make purchases with a debit card.Ī variety of options are available, including traditional checking accounts with debit cards, as well as prepaid debit cards, that parents can manage jointly with a child. ![]() MANY children learn to save by stashing cash in a piggy bank or jar, then graduate to a basic savings deposit account. ![]()
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