England’s Starling Bank is launching a debit card for use by children under the age of 16. The cards can be used for spending online, instore or withdrawing cash from ATMs, according to a report in Finextra.
A Starling Kite debit card for children can be ordered by parents from the Starling Bank app, with a maximum allocation of £5,000 ($3,801.05) in funds.
Parents receive notifications whenever their child spends money and they can control or check specific functions such as online payments and ATM withdrawals or set a daily transaction limit.
The card comes with a monthly £2 ($2.60) fee, one of a range of new charges introduced by the app-based bank recently.
“Understanding the value of money and learning skills such as budgeting and saving from a young age can help people lay the foundations for them to achieve better financial wellbeing later on in life,” Anne Boden, CEO and founder of Starling Bank, said in the report. “We want Starling Kite to encourage families to talk about money together and not see it as a taboo subject.”
Once children turn 16, they will be invited to open a Starling teen account for 16-17 year-olds which will automatically change to a Starling personal account after their 18th birthday.