A credit card for children is a great way to help them build a positive credit history. The process is simple. It is easy to add your child as an authorized online user, and the company's new card will be shipped. It is becoming more common for kids to use credit cards. In fact, a recent study by T.RowePrice found that 17% of parents with children aged eight to 14 owned a credit card.
Greenlight
Greenlight is the perfect credit card for parents who are looking for a card to give their kids credit. The green card comes with zero foreign transaction fees, no ATM fees, and no card purchase fees. You will also enjoy features such as allowance tracking and contactless payment, along with a low $4.99 per month service fee. It also helps teach children financial responsibility by tying chores to rewards and allowances. Children can use the card for chore checking and instant notification when they are completed.
Parents have the option to manually load money onto their child's Greenlight cards or set up recurring transfers. The card can then automatically receive weekly allowances. Parents can also set up parent paid interest for their child’s account.
GoHenry
The GoHenry credit cards for children are designed with financial education as a focus. The card features include a customized debit card and an app that allows kids to set savings goals and manage spending. Parents can monitor their child's spending through the app, and the card is FDIC-insured. Parents can view the spending history of their child and track trends in real-time.
The GoHenry debit cards for kids and Greenlight credit cards for teens are both designed to teach financial responsibility. The app includes a colorful budgeting tool and a chore tracker, which adds money to your card when you complete household chores. This app is a great tool for parents to monitor their child's spending habits as well as encourage financial responsibility.
Apple card for iPhone
Apple's new credit card for kids is a great way to introduce children to the world of credit. This card includes a variety features including spending limits, and the ability of setting up a budget. Through an educational approach, this card helps children learn about financial responsibility. They can share the card with an older sibling.
Parents can also create family sharing groups to track spending and set spending limits. Parents can invite up five people to their card to build credit and share it with them. Each user must be at least 13 years old and must agree to be responsible for the spending. Each owner is responsible for payment and the activity is shared to the credit bureaus.
Secured credit card
Secured credit cards for kids can help build credit history, but there are some things to keep in mind before letting your child use one. First, secured cards are expensive and can carry high interest rates. Over-limit transactions will incur a fee. The downside to a secured account is the inability to transfer funds between cards. A better option is a card that allows you to set a spending limit and change it whenever you want. You don't want your child to have a credit card with a high limit that is impossible to repay.
Secured credit for kids cards can teach your child money management skills and help prevent over-limit fees. These cards can also help children build credit history and teach them about credit limits. It is a good idea that they start young to help avoid major credit card mistakes later.