Stress the importance of keeping track of all withdrawals, as well as any transaction fees, to avoid overdrawing the account. To protect the account, do not share the PIN or carry the number with the ATM card. The money is withdrawn directly from your child's checking account, so there are no interest charges, although some financial institutions may charge fees for debit card use. The cardholder's signature authorizes the purchase. Just like a standard ATM card, a debit card also allows cardholders to withdraw cash from their checking accounts.
Debit cards are safer to carry than cash and more convenient than checks.
Advise your children to enter debit card transactions in their checkbooks and track their account balances closely to prevent overdrafts. Smart Card - These new forms of plastic store cash right on the card. They are typically used for small purchases, such as bus fares, laundry machines and parking meters. Since your children can spend only the amount of cash they've loaded onto a card, smart cards may help them stick to a budget. After the card's value is depleted, it can be replenished.