Some of the cards come with educational materials to help parents teach kids about managing money. The Visa Buxx card, for example, is issued to parents on behalf of a teenager. Parents can't get the card until they acknowledge that they've administered a financial test provided by Visa Buxx. Judith Lau, a financial planner in Wilmington, Del., agrees it's important to talk to children about how to use a debit card, but she's not in favor of giving them a test. Parents should be partners in the process.
Debit cards can be a good way for kids to learn to manage a monthly allowance.
Also be sure to find out what happens if a debit card is lost or stolen. The good thing about a debit card is that it limits exposure to debt, but it doesn't teach about credit, McKinley says. That's why some parents prefer to co-sign for a credit card with a small line of credit. Pros and cons of credit Like it or not, we live in a world where credit cards are necessary for renting a car or booking a hotel reservation. They are important for building a credit history.