Has your child grown up and you want to give him some pocket money? You want to introduce him to managing a budget, teach him the value of money and things, but also allow him to have money at all times when needed. Pocket money is also a way for him to show his independence in front of you and to meet his daily expenses on his own, a cinema with friends, transport, a meal, clothes… It is also a good way to show him that he is no longer a child and to empower him.

According to a study carried out by Harris Interactive for the French Banking Federation (FBF) in March 2019, 47% of children aged 8 to 14 receive pocket money. On average, children realize the value of money from the age of 7, the age at which they learn numbers at school. Yes but there you go, you don't want to give him money directly for fear that he will get stolen or lose it. So you decide to provide him with a bank card and you are lost in front of the different cards that banks offer for minors.

E-Pay Space Team will present to you the different bank cards that can be made available to young people today.

First of all, it is important to know that traditional banks do not offer a real immediate debit card before the age of 16. From 16 years old, the teenager can have a classic bank card and even a checkbook always under the benevolent control of his parents. Before this age of "financial freedom", banks offer several types of cards suitable for young people from the age of 12 depending on the degree of autonomy that their parents want to give them.

Here are the three main types of cards offered by banks for 12-17 year olds:

1. ATM Card : this card is associated with the child's savings account and only allows you to withdraw money from ATMs. Depending on the bank, it can only be used in network branches or can be used anywhere in France and abroad. Parents can set this card to limit the number and amount of withdrawals per week and per month. It costs between 0 and 20 € per year. This card is for teenagers whose parents want their child to learn how to manage a budget while controlling spending. It's also for teens whose parents want to wait to give them their first payment card.

2. Reloadable prepaid card : this card is linked to the parent's or child's bank account. It brings more autonomy to the teenager because it allows him to buy online, in store with a code or without contact in France and abroad within the limit of the balance available on the card and therefore without any possible overdraft. . However, this card can be controlled remotely by the parents and the child can consult his expenses or his balance in real time via a site or an application. Parents can set limits for withdrawals and payments can be set. Once the amount paid is consumed, the parent makes a wire transfer or transfer to reload the card. This card costs on average € 15 per year. Many Fintech supported by Programme Managers, provide this type of cards.

Other more advanced functions are emerging on the basis of prepaid, with in particular the arrival of electronic wallets (e-wallets) and notions of motherboards and daughter cards with the use of card-to-card transfers, but also with the arrival of contactless payment media (mobile, connected watches, etc.).

3. International card with systematic authorization : it is an international bank card linked to a real account on which you can set up transfers and direct debits. There is, however, no risk of overdraft since a systematic authorization request is made for each payment. This card is coupled with an application that allows adolescents to manage their budget and view their expenses. Parents have full control. It costs on average € 20 per year and remains very attractive since it is cheaper than a classic card with immediate debit, available from the age of 16, at a price of € 40 per year.

These cards now have several advantages, they are often very inexpensive and above all "risk free", banks "invest in the future"; and they also learn budget management from an early age.

E-Pay Space Team