In our increasingly cashless world, it’s more important than ever to help kids understand how money works in a digital form. Teaching them the difference between debit and credit cards is a meaningful step toward this goal. This article breaks down card basics, highlighting key differences, benefits, and considerations, so you can decide what’s best for your child and confidently support their financial learning.

Key Takeaways

  • A debit card for a minor is typically linked to a youth checking account and helps kids build budgeting skills by limiting spending to available funds.
  • Prepaid debit cards aren’t tied to a bank account and can be a good entry point for practicing digital money skills. However, they often come with more fees and fewer features, which may limit long-term learning.
  • Credit cards for under 18 require parental involvement—usually as an authorized user or through a youth-focused card—and can help build credit, but they also carry risks like interest and debt.
  • Your child’s maturity, responsibility, and understanding of money matter more than age when deciding if they’re ready for any type of card.
  • All cards offer real-world teachable moments. Choose the option that best fits your child’s needs—and the level of support you’re ready to provide.

Credit Cards and Debit Cards for Kids

Debit and credit cards may look the same, but they work very differently—and each teaches kids different money skills.

  • A debit card for a minor is usually linked to a youth checking account that parents help open and monitor. When your child uses the card, funds are pulled from their balance. Many youth debit cards don’t allow overdrafts, meaning transactions are declined if there aren’t enough funds—helping kids avoid overspending. These cards are helpful for teaching budgeting, tracking spending, and learning how to use a card safely for everyday purchases.
  • Youth credit cards for minors under 18, by contrast, involve borrowing money from a line of credit that must be repaid. Minors can’t open a credit card on their own, but they can get one through options like becoming an authorized user on a parent’s card or applying for a youth credit card with parental consent. Credit cards can help build a credit history when used responsibly—but they also carry risks like interest charges and potential debt if misused.

Research cited by Edutopia shows that kids who receive financial education early tend to have better credit scores and make more informed financial choices later in life.1 Both types of cards can be useful tools—just be sure to match the card to your child’s readiness and stay involved along the way.

Is Your Child Ready for a Debit or Credit Card?

There is no specific age that guarantees a child is ready for a debit or credit card. Readiness is more about demonstrated behavior and responsibility. Ask yourself a few key questions:

  • Responsibility: Does your child manage their allowances or cash responsibly? For example, do they save up for things they want, or do they tend to lose money and possessions? If they already show responsibility with cash, they might handle a card responsibly as well.
  • Understanding: Does your child understand that a debit card pulls money from a bank account, or that a credit card bill must be paid later with real money? Make sure they grasp the concept that credit is not “free money.” You might start by explaining how your own credit card works and how you pay the bill each month.
  • Rule-following: Consider how your child follows rules in other areas of life. Using a card requires following some rules (like not spending more than the agreed amount or only using it for certain things). If your child struggles with following rules or limits, they may not be ready for the responsibility of a card.

You’ll also want to consider your own readiness to supervise. Card use requires ongoing guidance, boundary setting, and teachable moments—not just a one-time conversation. Resources like Let’s Talk Money: Spending and Let’s Talk Money: Saving can help start the conversation.

Debit Cards for Kids

A debit card for children is usually tied to a youth checking account that parents help open and monitor, and in some cases, it may also allow access to a connected savings account. The child gets a card in their name, but parents typically have access to manage the account. Funds are withdrawn directly from the account with each purchase, and many youth debit accounts are either automatically set to decline charges that exceed the balance or allow parents to enable controls that prevent overdrafts—helping kids avoid overspending and fees.

Pros of Debit Cards for Kids

  • Encourages responsible spending within clearly defined limits.
  • Often prevents debt and interest charges by limiting spending to available funds.
  • Offers secure, convenient access to money without the need to carry cash.
  • Provides online banking access for kids 13 and older, allowing them to independently view transactions and manage their money.2

If you decide to do further research on the best kids’ debit card for your child, consider exploring Kids and Teen Bank Accounts at WECU.

Cons of Debit Cards for Kids

  • Does not help build your child’s credit history or knowledge of credit scores.
  • May offer limited fraud protection compared to credit cards.
  • Children under 13 typically can’t access their accounts online or through mobile apps due to the Children’s Online Privacy Protection Act², which may limit their ability to track spending independently.
  • While many youth accounts are set to decline charges that exceed the account balance, some debit cards may still incur overdrafts or other fees if not carefully managed, according to Bankrate.3

Prepaid Debit Cards for Kids

A prepaid debit card for a minor isn’t linked to a bank account. Instead, a set amount is loaded onto the card, and the child can only spend what’s been added, like a gift card. According to NerdWallet, prepaid cards are often used to introduce budgeting, card use, and the idea of digital money4—before transitioning to a full youth banking account.

Pros of a Prepaid Debit Card for Kids

  • Encourages responsible spending by limiting access to only the funds loaded onto the card.
  • Helps kids learn how to make purchases with a card, without linking to a full bank account.
  • Reduces the risk of loss or fraud since the balance can be kept low.
  • Offers an early introduction to card use for kids who may be too young for a debit card.4

Cons of a Prepaid Debit Card for Kids

  • Does not build credit or support a child’s understanding of how credit works.
  • May include activation, reloading, or monthly maintenance fees.3
  • Often lacks features like online banking tools or parental oversight found in youth checking accounts.
  • Unregistered cards may be harder to replace according to the CFPB, and lost funds might not be recoverable.5

Credit Cards for Kids

Credit cards for minors under 18 can be powerful learning tools when used carefully and under adult supervision. There are a few key options to consider, each with different levels of responsibility and control.

One option is becoming an authorized user on a parent’s credit card. This gives a teen access to credit and a chance to learn about interest, billing cycles, and credit limits, while the parent maintains full financial responsibility for the account, according to Experian.6 Many major credit card issuers allow children as young as 13-15 to be added as authorized users, though policies vary by lender.6

Another tool is a secured credit card, which requires a cash deposit (usually equal to the credit limit) that acts as collateral. Most secured cards are not available directly to minors, but a parent may be able to open one and add their child as an authorized user—giving the child hands-on credit experience with a card that’s backed by the family’s own deposit and sometimes easier to qualify for than traditional credit cards.

A third credit cards for kids option is applying for a youth-specific credit card, like WECU’s First Step Visa. These cards are designed specifically for teens and require parental consent to apply. They typically offer a low credit limit and often include an educational element— in the case of WECU’s First Step Visa, this means completing a financial literacy course—to help teens understand how credit works before they start using the card.

For further exploration of these credit options, explore WECU’s resources on Secured Credit Cards and the WECU First Step Visa Credit Card.

Pros of Credit Cards for Kids

  • Help build a child’s credit history early, likely leading to better loan options and interest rates down the road.
  • Offer stronger fraud protection than debit cards, reducing the risk of unauthorized charges.
  • Provide financial flexibility in emergencies when extra funds are needed.
  • Support lessons in interest, repayment, and responsible spending habits.

For more information, visit WECU’s Credit Cards page.

Cons of Credit Cards for Kids

  • Increase the risk of overspending and debt if not used responsibly.
  • Can accrue interest charges if balances aren’t paid in full each month.
  • Require close parental supervision to ensure safe, responsible use.
  • In shared credit arrangements—like authorized user setups or joint accounts—irresponsible use can negatively impact both the parent’s and child’s credit history.6

Teaching Safe Card Use and Digital Security

As you introduce your child to using debit or credit cards, it’s equally important to teach digital safety. Start by helping them understand the basics:

  • Don’t share your PIN or passwords with others—even friends.
  • Keep your card in a secure place and report it immediately if lost or stolen.
  • Use strong, unique passwords for online banking tools.
  • Avoid using public Wi-Fi to access financial accounts.
  • Review statements regularly and report suspicious activity.

These practices help protect your child’s identity and finances as they begin to navigate digital money. Many youth accounts also offer tools like freeze-and-replace features or real-time alerts to support card safety.

Explore WECU’s Security resources for more safety tips.

Why Financial Responsibility Matters for Kids

Helping your child build real-world money skills—whether through a debit card, a credit-building tool, or everyday conversations—is a valuable way to support their growing independence. These early experiences aren’t about being perfect, but about learning how to make thoughtful, informed financial choices.

Financial responsibility is less about knowing every rule and more about forming steady, healthy habits. As kids learn to manage a budget, track spending, and use tools like cards under your guidance, they begin to build confidence and awareness around money.

Your support plays a key role. By staying involved—answering questions, setting boundaries, and monitoring their use—you’re helping your child develop the practical skills and confidence they’ll need as they take on more financial responsibility in the future.

Frequently Asked Questions About Credit Cards vs. Debit Cards

Can a minor have a credit card?
Yes, a minor can have a credit card by becoming an authorized user on a parent’s credit account or applying for a youth-specific card that requires parental consent.

Can you have a credit card under 18?
Yes, you can have a credit card under 18, but it typically requires adult involvement—either through authorized user status or teen-focused credit card programs.

Can a 17-year-old build credit?
Yes. A 17-year-old can start building credit as an authorized user on a parent’s account or by responsibly using a youth credit card with parental oversight.

How do I build my child’s credit?
You can build your child’s credit by helping them use a youth credit card responsibly (keeping low balances and consistently making on-time payments), or by adding them as an authorized user on your existing credit card.

How do I get a debit card for my child?
Open a youth checking account for your child at your financial institution. Many offer debit cards for children with parental controls and monitoring features.

 

References

  1. Edutopia. “Teaching Kids to Manage Money Yields Big Returns, Research Says.” Edutopia, July 13, 2023. https://www.edutopia.org/article/financial-literacy-education-yields-big-returns. Accessed April 7, 2025.
  2. “Complying with COPPA: Frequently Asked Questions.” Federal Trade Commission, https://www.ftc.gov/business-guidance/resources/complying-coppa-frequently-asked-questions. Accessed April 8, 2025.
  3. Dieker, Nicole, Liza Carrasquillo, and Alice Lesperance. “How to Help Your Kids Build Credit.” Bankrate, April 4, 2024. https://www.bankrate.com/personal-finance/credit/educating-teens-about-credit/. Accessed April 8, 2025.
  4. “Prepaid Cards for Kids: How to Choose the Right One.” NerdWallet UK, https://www.nerdwallet.com/uk/credit-cards/about-prepaid-bank-cards-for-kids/. Accessed April 8, 2025.
  5. “Choose the right card for your situation.” Consumer Financial Protection Bureau. https://www.consumerfinance.gov/consumer-tools/prepaid-cards/choose-the-right-card/. Accessed April 8, 2025.
  6. “What Is the Minimum Age for an Authorized User?” Experian. https://www.experian.com/blogs/ask-experian/what-is-minimum-age-for-authorized-user. Accessed April 7, 2025.