While thinking about becoming a grown-up, most teenagers consider living separately and driving a car, but rarely they think about managing the money. For every person, managing the money in the right way is the key to becoming successful. Having financial knowledge at a young age can help teens prosper better and have better saving plans when they become adults.
Being just one step away from adulthood, teenagers must learn to manage their money. The Spendsafe Debit Card For Teens gives them the perfect opportunity of learning that. If you are one of the teenagers who just have got their debit cards in the hand, you should read the following section of this article.
Here, we have talked about all the basic lessons of managing your debit card that will lead you to prosperity in the future.
How Do Debit Cards work?
Most comes with a checking account of their own. Whenever you use the debit card for purchasing anything, the money will come straight from that account. The debit card gives you 24/7 access to your checking account so you can keep track of daily expenses.
You can even withdraw money from your checking account with the help of your debit card. However, remember to spend only the money that you have in your account. Use the card to check your account balance to make sure that you are well within your budget.
Facts about Prepaid Cards
If you got one, know that it is not attached to any accounts. Instead, you only have the money that your parents have added directly to your cards. If you have this kind of card, make sure to know all the terms and conditions that come with it.
Some of the cards come with activation fees, per-transaction fees, and monthly fees. The more you know about these fees the easier it would be for you to handle the card.
How to Put Your Card to Work?
You can use your debit card in almost every situation. You can even purchase things online while using the debit card. You just have to enter the pin or the three-digit CVV number of your card that comes with it.
There are some merchants, like the gas stations or rental services that put a hold on your account for more money than the actual bill. If you are to use such services, make sure you have enough money in your bank account to cover it.
Should You Use The ATM?
Most of the banks have implemented some charges on the money withdrawal from the ATMs. If you use the ATMs of other banks you might have to bear a certain charge which is not advisable unless an emergency cash crisis.
It is better to use the ATMs of your bank or simply using the card to make the necessary purchases. The best thing about using your card is, you get some cashback when using it to purchase something, which is a real treat.
How to avoid extra fees?
If you are not careful about the fees, they can add up to a hefty amount pretty fast. You can incur extra fees if:
Your checking account balance goes below the minimum level due to your excessive expenditure. So, before using the allowance on your debit card, make sure to know about the minimum amount of your bank account to manage your spendings accordingly.
You purchase something using the debit card but don’t have enough money in your account to cover it. You can still purchase it if you opted for overdraft coverage while opening the account. However, keep in mind that you have to pay the excess money plus additional fees to the bank. Only use this option to buy emergency items. Paying an extra fee to the bank is an extra expense on the whole.
Using an ATM other than your bank always has a small extra fee.
How to Keep Your Card Safe?
You should always keep your card in your purse or your wallet. You can also use a cardholder to keep all the important cards separately. If you want to be more secure on your end, you should:
Download the mobile application of your bank account. This application will not only help you to track the expenditure but also help you to unlock or lock your debit card.
Choose a pin that only you know. Don’t use the easy to guess numbers, like your birthday for the pin of your card. Also, change the pin regularly.
Preparing for the future
One of the many thoughts that might come across the mind is the fact that why should teens be given such cards. One of the most important reasons to use such cards is to keep parental restrictions on online transactions and also to keep your child away from any kind of liquor store. It also teaches them the importance of saving a “portion/percentage” of your money for the future. When a child has such financial knowledge from a young age, parents would not need to stress over financial measures when the child grows up!
There is no doubt that the above guide will help you to fare through the challenges that cards for teens can create. However, if you need any help with the debit card, don’t hesitate to ask your parents about it. They are the ones who helped you get the card and they can help you down the line as well.