Find the best prepaid card for your teenager, helping them to understand the responsibility of money and providing access to emergency funds.
We're on a mission to improve the finances of the nation by helping you to spend wisely and save money
We're on a mission to improve the finances of the nation by helping you to spend wisely and save money
By Matt Fernell, Editor-in-Chief at Finance.co.uk.
If you want your teen to have access to money, prepaid cards for teens may be useful. Here’s how they work and how to find the right card for you and your child.
If you want a safe and convenient way to give your children money without using cash, prepaid cards for teens are a good option.
They allow you to monitor their spending and are a great way to teach them how to budget and spend wisely.
However, there are lots of cards out there, so it’s important to choose the option that works best for you and your teen.
Some banks and providers will only allow you to get a prepaid card if you already have a current account with the same bank. This can limit your choices, so it’s important to check when you’re researching the right prepaid card for your child.
If you’re looking for a prepaid card for teenagers to help educate your child about managing their money, consider a card with spending limits and helpful tools. Common features cards for children have include:
Spending limits you can set - these can be daily, weekly or monthly
Ability to limit ATM withdrawals or online spending
In-app money lessons to help your child’s financial education
Chore tracker that links payments to the completion of tasks
Sorting your child’s money into spending pots to help them budget
The cards with more features tend to charge more fees, so factor this in when comparing options. Think about what features you want from your card and use this to find a card that fits the bill.
If you are just looking for a card that lets you upload your child’s pocket money or allowance, a card with fewer features and fees might suit you better.
When you’ve worked out what features and tools you need from your prepaid card for teenagers, look at the fees they charge. We show the following fees above:
Transaction fee: This fee is charged every time your child uses the card to buy something. Most cards for teens don’t charge a transaction fee, but check the small print as there might be charges in some circumstances.
Monthly fee: This is a fee you pay every month for the card. Many prepaid cards for kids charge a monthly fee, ranging from around £2 to £12 a month.
Card fee: This is a one-off fee when you first purchase the card and is sometimes called an application fee or a purchase fee. Most cards don’t charge a card fee, but some may charge a delivery fee of around £5.
ATM fee: This fee is charged every time your child uses the card to take cash out from an ATM (cash machine). Most cards don’t charge this, but some come with ATM limits or don’t allow ATM withdrawal at all.
You can use the fee information to compare cards that offer the features you want to see which is cheapest.
To help you determine if a prepaid card for teenagers is the right option for you and your child, compare the pros and cons.
No credit checks when you apply so it won’t affect your credit score
Monitor your child’s spending and set limits and controls
Some have in-app money lessons to teach your kids about their finances
Impossible for your child to get into debt
Lost or stolen cards can be blocked to stop them from being used
You do not get Section 75 protection with prepaid cards for teenagers
Cannot set up a direct debit or standing orders on a prepaid card
They can come with multiple fees, which can become costly
They don’t automatically cancel when they turn 18
A children's current account might be a good option if you want to give your child access to money from 11 years old.
These accounts offer more functionality, like earning interest, paying direct debits, and receiving a salary. However, there are much fewer parental controls for these accounts.
If your child is under 11, there aren’t many other options available because they’ll be too young to open a bank account.
The information provided does not constitute financial advice, it’s always important to do your own research to ensure a financial product is right for your circumstances. If you’re unsure you should contact an independent financial advisor.
The minimum age you have to be to get a prepaid card is 6 years old. A parent will have to set up the card on the child’s behalf if under 16.
The maximum age to get a prepaid card for teenagers is 18. It’s important to remember that these cards do not automatically cancel once your child has reached 18. You'll need to cancel it to avoid future charges.
Yes, you can get more than one prepaid card for teenagers.
Some providers will allow you to split the amount of money on the card into different ‘pots’. For example, you could use one pot for saving, and another can be used for daily spending.
You can set spending limits and cap the amount they can withdraw in cash. You can usually control this on an app, and if you think they’re spending too much, you can freeze the card. You can control where the card can be used; for example, you can block online purchases.
Each provider will have limits on the amounts that can be loaded onto a card. These amounts will differ between providers, so it’s important to compare the best prepaid cards for teens to find the right one that suits you and your child.
Some cards charge a fee if you upload less than a certain amount, for example, loading less than £10 at a time.
They can be used in most places where a debit or credit card is accepted. This includes restaurants, public transport, and retail stores. These cards can also be used online, allowing the child to purchase items from websites, although you can restrict this.
They can also be used at cash points, meaning they can access cash if needed. There are some places where prepaid cards cannot be used, including gambling sites, casinos, off-licences, pubs, or any outlets designed for those over 18.
