Nowadays, this is mandatory at an early age to know the necessary values of the importance of investment and savings that shall be educating.
That would help your child to understand the golden rule of investment.
Kids were very tech-smart than past generations. When it comes to money or finance, they must have a lot to learn from the elders.
However, becoming a debatable subject for the parents whether they should let their child use a debit or a credit card on their own.
Lawfully, in India, some banks are provided bank accounts and debit cards for the children as a way to show some confidence in them for managing money and savings.
Bank credit cards are not permitting selves below 18 ages.
These days some new fintech companies like offering prepaid cards for children. These will use for both offline and online spending.
Many industry experts say, that it would be a wise decision to make the children learn how to use debit and credit cards of certain restrictions, education, and usage tracking.
There are have some pros and cons for letting the child own credit and debit cards by Mr. Anshul Gupta, co-founder of Wint Wealth:
While certain cards are beneficial to set saving habits and access to spend at an early age could do more harm than good, if the children don’t explain the importance of overspending.
The parents must have ensured to educate their children on the absolute way to use debit and credit cards.
If we look at the Pros, it is a better way to strengthen financial habits and precede them the concept of saving.
And at the Cons, a few cases transactions might have extra or sometimes hidden charges that children may not understand early on.
At the same time, some expert says, No need for children to give debit or credit cards.
The Founder and CEO of Nivesh.com, Mr. Anurag Garg, says that can be permissible to give a debit card but not for a credit card.
Debit cards provide a way to make a solid connection between spending, the value of money, the services, or goods received.
The same objective can accomplish with cash, debit cards, and digital payments which have quickly become a more common payment method.
Garg says Prepaid cards are the best option as children can avoid overdrafts since they can only spend the money from the cards.
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