Debit Cards for Kids Under 13 do exist. You can do some searching to find the debit cards that banks will issue to minors under the age of 18 or even 13. I finally found a great solution for this need. However, before I dive into it, I have to tell you the back story.
He felt so passionate about teaching his kids about money that he created an entire allowance management system called FamZoo to prepare kids for the “financial jungle.” It has debit cards, a web and mobile interface to help manage it all. It’s a pretty neat concept if I must say so myself.
I actually saw Bill present at a financial blogger conference, FinCon, a couple of years ago. I thought his idea was genius but I didn’t jump on board at the time.
Shortly after chopping it up with Bill a few weeks ago though, I got fed up.
After all the fighting, hemming and hawing and just getting exhausted with my kids over them doing chores, wanting things and feeling entitled to my money to please them, I knew I had to do something.
Bill was feeling my pain. He knew that one of the most difficult things for parents was keeping track of money, chores and how well kids are receiving money lessons.
After signing up, I got three debit cards in the mail: one for myself and two for my girls.
I have to admit, the signup process was a little clunky, but I pressed through because I believe in the ability of technology to help us with our money woes. Plus their support team is SUPER quick. Within minutes of sending an email, you get a response and many times a call from a friendly-U.S. based rep who will take the time to walk you through everything.
I’m glad I got through set up, however. After that’s done...the app is SUPER EASY to deal with.
Once I distributed the cards, I made it plain to my kids: you get your weekly allowance only after you’ve complete your clipboard activities. These activities include a combination of chores, reading, school work, music, etc. They can even earn more money with bonus activities like weeding the garden or making YouTube videos.
This money is to fund any eating out and snacks they want during the week. After two cycles (they get paid every 2 weeks,) I’m happy to say it seems like things are sinking in.
At one point, I heard my kids both decline guacamole at Chipotle because it would add to their bill!
It’s not much, but it’s something to get my kids to understand the finite nature of money. They had to make a conscious decision and count the opportunity cost of forgoing that delicious guac.
Also, the FamZoo interface (both web and mobile app) makes it easy to transfer money back and forth between cards. I can dock my kids for missing chores or let them pay me back (with interest) if they come out of the house with no money causing me to have to cover their soda or bag of chips.
I can see things starting to click with them.
The best part is that the mobile app allows the kids to check their own balances and enables parents to move money around based on their household values system.
I can say that this system has been very helpful in teaching money values into my kids at younger age, plus they get the grown-up feeling to swipe their debit cards at the cash register!
Also, check out the Inc.com article I wrote about Bill’s data from FamZoo on Chipotle and Spotify and how these charges might predict your kid’s credit score: The Awful Truth about Burritos and Music that Could Predict Your Teen’s Credit Score.
This article was fun to write but more importantly, helped me get my tail in gear to deal my kids money habits. I hope it helps you, too!
Interested in more articles about kids and money? Check out my entire Pinterest Board on the Topic: Kids & Money.
Finally, check out my free eBook on attaining a debt-free college education for your kids:
Free Guide: Debt Free College Degree
A debt-free college education is possible. Check all the ways you can go to college WITHOUT pesky student loans.