Best prepaid and debit cards for kids UK: 2021 review - YouTube

Back in my day, when I went to pay my pocket money into the bank, I had to take a little

checking book up to the cashier to have it stamped.

Fortunately, in the last few years we’ve seen real innovation in financial products

for children resulting in a boom in what’s known as spending or pocket money apps for

kids.

These apps are designed to help kids as young as four develop better spending and savings

habits while keeping you, the parent, firmly in control.

In this video, I’ll talk you through how kids’ prepaid debit cards work, the main

features of our favourite apps and answer any safety concerns you may have as a parent.

How they work

In the UK, you can’t open a children’s bank account until your little one is at least

11 years old.

But if you want to give your kids some autonomy over their pocket money before then, a prepaid

or debit card for kids could be the solution.

Typically, the payment card comes with a fun, colourful and easy-to-use app that teaches

them good financial skills and helps you keep an eye on their spending.

Unlike with a kids bank account, the parent will have to apply for the prepaid debit card

on their child’s behalf and there’s usually a monthly or yearly fee for these products.

However, as prepaid debit cards are targeted at much younger age groups, what you’re

essentially paying for are the suped-up parental controls that you don’t get with a kids

bank account.

As a parent, you can load their card with money, set spending limits, choose whether

the card can be used at ATMs, online or just for in-store purchases and even lock the card

entirely.

Best for controls: gohenry

Designed for kids aged 6-18, gohenry is one of the best prepaid cards for parental controls.

It works by having linked parent and child accounts so you can easily top up their card

and oversee their spending.

Relatives can also send money via the app and you can manage up to four kids from one

parent account.

With the app and prepaid Visa card, children can check their balance, make payments and

withdraw cash.

And you’ll get an instant notification to your account every time there is activity

on the account.

Payments and ATM withdrawals are fee-free, but at £2.99 a month this is one of the more

expensive monthly subscription cards, and you only get one free top up per month.

It’s also likely that kids will outgrow this app before 18, so it might be a better

option for younger children.

Best for educational tools: RoosterMoney

With RoosterMoney kids can earn rewards and keep track of their pocket money with engaging

educational features.

It comes in two parts.

The first is a free app, designed for kids as young as four, where they can earn stars

for chores or achievements.

You can then turn stars into rewards.

This will have to be done in a literal cash exchange, though, as no money is actually

used in the app at this stage.

The second part is for kids’ aged eight and over and involves a prepaid card with

a yearly subscription.

You can load the card with pocket money and set spending controls as you see fit.

At £24.99 a year for the card and the app, RoosterMoney is one of the cheapest prepaid

options, but its educational features and extra tools like savings pots with interest

rates that parents can set and rewards-based goals really set it apart.

Best for using abroad: Starling Kite

Existing Staring account holders can quickly and easily open a Starling Kite account for

their kids through the mobile app by clicking ‘Spaces’, ‘New Space’ and selecting

‘Child Space’ to set one up.

The Kite prepaid card costs £2 per month.

But, with no fees on payments and cash withdrawals, at home or abroad, it’s one of the best

options for kids aged 6-16 to use when on their holidays or travelling.

The downside to this account is that everything is solely managed through the parent account

so kids don’t actually get their own app or a way to monitor their spending and balance

details.

Best for the free app: Revolut Junior

Revolut Junior is the latest kids’ account from digital challenger bank Revolut.

There’s no monthly fee but, like Starling Kite, parents must already have an account

to open one for their kids.

Additional fees will then mirror those of whatever tier your parent account is on be

it Standard, Premium or Metal.

The exception being for ATM withdrawals which incur a fee after the £40 a month limit.

With a card and account that’s just like their parents’, Revolut Junior really gives

kids aged 7-17 that sense of independence and autonomy over their money.

Best for regular savings: nimbl

Like gohenry, nimbl uses a parent/child account combo so you can easily top up your kids’

prepaid debit Mastercard and get real-time spending notifications of their spending.

With nimbl’s ‘micro-savings’ feature, everytime your child makes a payment on their

card a pre-set amount of money, chosen by them, gets transferred into a savings account.

There is a monthly fee of £2.49 with nimbl, but card purchases, top-ups and ATM withdrawals

are free.

And again, you can manage up to four accounts from one parent account.

Best for earning cashback: Osper

Designed for kids aged 8-18, Osper is another linked parent/child combo that’ll set you

back a mere £2.50 each month per card.

Of which you can take out four per household

With Osper, kids can choose to put aside a percentage of their allowance each month and

even set a specific goal to save for like a new bike or game.

Plus, you can also earn cashback if you shop via KidStart, which is like a loyalty programme

and network for parents to get better deals for their children.

Best for budgeting: HyperJar Kids Card

The HyperJar Kids Card is one of the latest kids products to hit the market.

It comes from specialist budgeting app HyperJar that lets you organise your money into different

“jars” like groceries, going out and savings and now, there’s one for your kids’ pocket

money.

Your kids’ account is linked to one of your “jars” and acts as a great alternative

to cash pocket money while helping them save and consider their daily expenses.

The app is for kids aged 6-17 and, unlike most prepaid cards for kids, is free to use,

including making transactions abroad.

Parents will need to open an account to get one for their kids, but the app is free so

it’s a win win!

Are kids’ debit and prepaid cards safe?

If the thought of sending your little ones out into the world with their own card strikes

fear in your heart, this section should hopefully assuage your anxiety.

Most of these accounts come with stringent in-app spending and card controls that let

parents set spending limits, block purchases from age-restricted stores and freeze lost

or stolen cards.

Plus with linked accounts you get instant notifications every time your child makes

a payment so you can monitor their activity in real time.

With the exception of Starling, most of these providers aren’t actual banks, but they’re

still licensed by the Financial Conduct Authority (FCA).

Individual apps will also have additional safety features.

Like RoosterMoney, for example, that generates a new CVV code every time your kid uses the

card online.

What next?

Whether you’re looking to help your children save, develop better spending habits or simply

have more autonomy over their allowance, head to finder.com/uk to compare the right card

for your kid.

Links are in the description below.

Stay tuned for our next video here (LHS), hit this lil button here (RHS) to subscribe

to our channel or leave us a comment below – we’d love to hear from you.

Thanks for watching.