A credit card for children is a great way to help them build a positive credit history. The process is straightforward. Simply add your child to the authorized users list online and the company will mail the new card. Another great reason to get a credit card for kids is that it is becoming increasingly common to do things using credit cards these days. T.RowePrice has found that 17% percent of parents who have children aged 8-14 own a credit cards.
Greenlight
If you're a parent and you're looking for a credit card for your kids, look no further than the Greenlight credit card. The Greenlight credit card has zero card purchase fees and no ATM fees. There are also zero foreign transaction fees. You also get features like allowance tracking and contactless payments. There is also a low $4.99 monthly fee. The card helps children learn financial responsibility by linking chores to rewards or allowances. The card can be used by children to track chores and receive instant notifications once they have been completed.
Parents have two options. They can either load money manually to their child’s Greenlight account or they can make recurring transfers. Weekly allowances can be automatically loaded to the card this way. Parents can also set-up parent-paid interest to their child's accounts.
GoHenry
The GoHenry credit card for kids is designed with financial education in mind. Its features include a customizable debit card and an app that lets kids set savings goals and manage their spending. The card is FDIC insured, so parents can track their child's spending via the app. Parents can also see their child's spending history, and track spending trends in realtime.
Both the GoHenry debit and credit cards for children, Greenlight, are designed to teach financial responsibility. It features a variety of budgeting tools, as well chore trackers that allow you to add money to the card for any household chores. Parents can track their child's spending habits to 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. The card has a number of features including spending limits and the ability for you to create a budget. This card also helps kids learn about financial responsibility through an educational approach that lets them share the card with an older sibling.
Parents can also limit spending and form a group to share spending data. Parents can invite five people to share their credit card and build it together. Each user must be at the least 13 years of age and agree to pay for all spending. Each owner is responsible for payment and the activity is shared to the credit bureaus.
Secured credit cards
Although secured credit cards can be a great way to build credit history for your child, there are some things that you need to remember before you allow them to use one. The first is that secured cards are very expensive and carry high interest rates. Plus, you'll have to pay a fee for over-limit transactions. A secured card has one disadvantage: it is difficult to transfer balances between cards. A better option is a card that allows you to set a spending limit and change it whenever you want. Your child shouldn't have a high-limit card and then discover that he/she cannot pay it back.
Secured credit cards can be used to teach children how to manage their money and avoid over-limit charges. They are also useful in helping children to build their credit history. It's also a good idea for children to start early because it will prevent them from making costly mistakes in the future with credit cards.