Many of us want to help our kids start on the right financial foot, and one of the best ways to do that is to give them their own debit card. You can open a child bank account with a debit card, monitor their spending, and even pay them an allowance using an app.
A survey by The Zebra showed that 1 in 3 young adults say their parents were the biggest influence on their financial habits. By giving your kids the option to learn how to manage their own money, you’re taking the first steps to help them become financially confident in the future.
Reasons To Open A Child Bank Account With A Debit Card
If you’re trying to decide whether or not to give your child their own debit card, there are many reasons to consider it and several free bank accounts for kids.
Promotes independence:
Giving your kid their own debit card allows them to manage their own money. Many debit cards allow kids to set their own goals and transfer money to savings. For example, my son saved for two years to pay for his own PlayStation 5. With goals at the forefront, kids will learn how to make choices between their short-term wants and long-term big-ticket items.
Plus, having a debit card prepares them to manage larger amounts of money as adults in the future. Rather than getting their first adult paycheck and not knowing how to handle it, kids who have practice with money will be able to make financial choices independently.
Safer than cash:
Let’s be honest; kids can be forgetful. It’s all a part of growing up and learning how to be responsible. Still, it’s painful when kids lose cash. With a debit card, you don’t have to worry about that.
Sure, kids can lose debit cards too. But, the difference is many debit cards now offer the ability to turn off or freeze the card if your child loses it. Ultimately, having a debit card is safer than cash because kids can recoup their money if it’s safely in the bank and not dollar bills in the bottom of their backpacks.
Kids learn how to save:
According to a Forbes Advisor survey, more than a quarter of Americans have less than $1,000 in savings. In a high-inflation economy, saving money is a challenge for many families right now. Although many factors contribute to an inability to save, it’s also possible to develop savings as a skill and a mindset – one that you can pass on to your kids.
Some kids’ debit cards come with an app that enables them to set savings goals and transfer money from their card to a savings account. Kids can learn how to save for small things, like Pokemon cards and bigger things like their first car.
Teaching kids how to exercise their savings muscles early on can teach them skills they can use for a lifetime. Helping them understand that some things require time and discipline to get can help them avoid taking on debt in the future and give them pride in ownership once they finally get to buy something they truly want.
Parent oversight:
One of the best things about the banks and apps on this list is that all of them come with parental oversight. Giving your kids their own debit card is very different from handing over your credit card before they go to the mall. With the kid debit cards on this list, you set the spending parameters and the allowance you want to give your kids.
Depending on the bank or app you choose, you can have the ability to approve purchases, transfer money, and see what your child is spending. Some of the apps below even allow kids to dip their toes into investing with your help.
The Best Child Bank Accounts With A Debit Card Option
Depending on the stage of life you’re in, some apps below might be better for you than others. The key is finding the one with the features you’re looking for that works for your family. Here are our top picks for a child bank account with a debit card.
Chase First Banking
Age range: 6-17
Minimum deposit: No
Service Fee: $0
Debit Card: Yes
The Chase First Banking checking account is, as the name suggests, designed to be your child’s first checking account. It’s intended for kids 6-12, but children as old as 17 can use it. (If your teenager prefers, Chase also has a High School Checking account for teens aged 13-17.)
To open this account for your kids, you have to have your own Chase checking account. However, there are no fees for your child’s account and no minimum deposit.
Your kids can use this account to learn how to manage money and save for their goals. As a parent, you can monitor their account and help guide them as they learn how to use it. With this account, your kids get their own debit card with their name on it. Plus, Chase has an easy-to-use mobile app and thousands of ATMs and brick-and-mortar branches your child can use to access cash.
Ally Custodial Checking
Age range: 0+
Minimum deposit: No
Service Fee: $0
Debit Card: Yes (with parent's name on it)
Ally doesn’t advertise a specific checking account for kids, but parents can create a custodial checking account. You can open any Ally bank checking, money market, savings, or CD account as a custodial account.
A custodial account means you are the responsible party for the account. The downside to Ally’s custodial account is while your child’s name is included on the account, their debit card will have your name (the parent) on it. However, your child can still use the debit card with parental guidance.
Ally doesn’t list a minimum age range for this account, and you can open a custodial account for a child at any age. However, if you want your child to learn the benefits of managing money, age 6 is typically a good time to start. We put together a full Ally Bank review so you can learn more of the pros and cons.
Check out our detailed post to learn the 7 steps to opening a kids bank account with Ally.
Capital One MONEY Teen Checking Account
Age range: 8-18
Minimum deposit: No
Service Fee: $0
Debit Card: Yes
If you’re a Capital One account holder (or decide to become one), you can open a MONEY Teen Checking account for children 8 and up. The biggest benefit of this account is there are no overdraft fees, which gives your kids a cushion to practice managing their money.
Another benefit is you get two account experiences – one for parents and one for kids. As parents, you can monitor your child’s spending, transfer money, lock and unlock their cards (a good feature if they lose it), and more.
Kids get lessons through the app about money management by being able to save for goals and create a budget. And, kids will get their own debit card in the mail with their name on it.
Crew
Age range: 0+
Minimum deposit: No
Service Fee: $0
Debit Card: Yes
Crew is new on the scene of family banking! This platform allows you to create joint savings and checking accounts for the whole family. You can also help your kids split their allowance between spending and saving. Additionally, there are child debit cards.
A few things are worth noting. The savings account is interest-bearing–and it's a high-yield account to boot! That means that your money and your kids' money will grow faster than if you used a typical brick-and-mortar bank savings account. Money in your accounts are FDIC-insured through their banking partner, Bangor Savings Bank. Plus, you can even set up direct deposit.
Currently, Crew is free to use and there are no required minimums to have an account. Check out our Crew Review to learn more about their best features and some things to consider before signing up.
Greenlight
Age range: 0+
Minimum deposit: No
Service Fee: $4.99/month ($9.98 for Max; $14.98 for Infinity)
Debit Card: Yes
Greenlight is a robust money and safety app for families. Greenlight offers three different plans: Greenlight Core, Greenlight Max, and Greenlight Infinity. Like many apps on this list, Greenlight offers money lessons, chore tracking, and savings goals. However, what sets it apart is the parental controls.
With Greenlight Infinity, parents can monitor more than just their children’s spending habits. The app includes crash detection, which calls 911 if your child is in a crash. You can also get driving reports, personalized weekly snapshots, and real-time trip alerts, which tell you when your kids are on and off the road.
Another feature that sets Greenlight apart is that kids can earn up to 5% on their savings if they meet certain criteria, the highest interest yield of the apps and accounts on this list.
FamZoo
Age range: 0+
Minimum deposit: No
Service Fee: $5.99/month (lower for long-term plans)
Debit Card: Yes
FamZoo offers software for your family to learn how to use money without having to worry about overdraft fees. You can transfer money to your kids account and keep track of their chores and allowance.
The card comes with a list of features, including the ability to give family loans, parent paid interest, chore charts, missed payment tracking, and even discounted pricing for longer memberships.
You can pick from these features and adjust them depending on your kids’ ages. Check out our full FamZoo review to learn more about FamZoo features, pros and cons.
Acorns Early
Age range: 6-18
Minimum deposit: No
Service Fee: $4.99/month
Debit Card: Yes
Acorns Early, formerly known as GoHenry, is another option for kids’ money management. Acorns Early comes with money lessons that are organized by age.
There are video lessons geared towards younger children and more advanced lessons for teenagers. You can even set a price, such as $1, to pay your kids to watch money lessons, which encourages them to learn. Parents can also set weekly allowance goals and check off chores as kids complete them.
What stands out about Acorns Early is the card designs. Of the options on this list, Acorns Early has designs that would appeal to kids the most. They are bright, and colorful, and have your child’s name on them. This gives kids a sense of ownership and gets them excited about having their own card. Learn more in our Acorns Early Review.
BusyKid
Age range: 0+
Minimum deposit: No
Service Fee: $4/month
Debit Card: Yes
BusyKid is a chore and reward app that helps kids learn how to earn, give, and invest money. The app is a 2022 National Parenting Product Awards Winner and with one fee, families can get up to five BusyKid cards with one account.
Some unique features BusyKid offers are a savings match, chores and allowances based on ages, and almost 60 charities kids can choose from to donate. None of the other apps or accounts on this list encourages charitable giving the way BusyKid does. So, if giving is an important part of your family values, BusyKid could be a good fit for you.
Check out our full podcast interview with the CEO of BusyKid, Gregg Mursett to learn more about the app, how it works, and why it might be a good fit for your family.
Goalsetter
Age range: 8-18
Minimum deposit: No
Service Fee: $3.95/month ($5.95/month for Gold)
Debit Card: Yes
Of all the options on this list, Goalsetter puts the most emphasis on teaching your kids financial literacy. In fact, your child can’t use their account until they’ve taken their financial literacy quiz for the week.
Goalsetter offers two plans: Goalsetter and Goalsetter Gold. Both come with debit cards for kids, financial quizzes, round-ups, and real-time cash transfers. With Goalsetter Gold, kids can learn about stock and ETF trading and trade with as little as $1.
We also love that Goalsetter was created by a female founder, Tanya Van Court, who built Goalsetter from scratch because her 9-year-old daughter asked for money to save in an investment account for her birthday.
Final Thoughts On The Best Child Bank Accounts With A Debit Card
As evidenced by this list, you have many options when it comes to choosing a child bank account with a debit card. If you already have existing accounts with institutions that offer child accounts, that’s a good place to start. However, some of the other apps and start-ups on this list might have more unique features you prefer.
When deciding which child account is best for you, keep a few things in mind. Compare app features, parental controls, and also fees. Choose the account that makes it the easiest for you to manage, transfer money, and keep track of your child’s money journey.
Overall, parents should be able to find an option that suits their family’s needs and enables their kids to safely learn about money management by using their own debit card.
What do you think of our list of child bank accounts with a debit card option? Which of these choices sounds best for your situation?
Please let us know in the comments below.
Disclaimers: Greenlight and Marriage Kids and Money have a Tier I affiliate relationship. Compensation and additional details can be found at https://greenlight.com/affiliates-details
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