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Personal account or savings account, debit card, TWINT or prepaid card: Which means of payment make sense and when? A checklist for every age.
At ticket machines, the swimming pool or the movies: from an early age, children regularly see their parents paying by card or smartphone. Children also have their first general contact with digital payments from primary school onwards. This is when they start comparing themselves with their peers – who may already have their pocket money paid into an account.
So it’s only natural that sooner or later, they will come up with the idea that having their own bank card would be pretty cool. You can use this learning window to explain topics relating to accounts and cards and to show your child how to use digital money. Digital payments make transactions transparent and promote personal responsibility.
But when is the right time to open an initial account for the child and give them their first bank card? Educators advise teaching children how to handle cash first – it helps if they are able to see and touch money. This way, the child will be ready to gain experience with bank cards later on. As soon as the child understands the concept of physical money, you can pay their pocket money into an account instead of giving them cash. Experts recommend doing this from around the age of 12, but it depends on the financial maturity of the child.
When the time comes, parents ask themselves lots of questions: Which account and which card are suitable for my child? And should the card become the child’s fixed means of payment from now on, or is it only meant as additional security? Discuss these questions with your child.
There is a wide range of accounts and bank cards available for children and young people. Check which rules apply to cards at different banks and explain them to your child – not every card is available for every age. You should also note the different fees and interest rates and see which extras appeal to you the most. Opening an account is a great learning experience for your child – after all, it’s their own money that’s involved.
Product | Product | Age | Age | Purpose | Purpose | Special features | Special features |
|---|---|---|---|---|---|---|---|
Product | Personal account for children and young people | Age | From 6 years or 12 years | Purpose | Learning how to handle money, managing pocket money, receiving their first income, making their first payments, managing a youth wage | Special features | From 6 years of age, can only be opened by a parent, limited digital functions From 12 years of age, the child can open an account on their own, incl. digital banking, TWINT, etc. |
Product | Gift savings account (or savings account for young people) | Age | From 6 years or 12 years | Purpose | Receiving financial gifts, saving up themselves | Special features | Available from birth as a gift savings account in the child’s name (e.g. if godparents, parents or grandparents want to save money for the child) Can be opened by a parent from the age of 6, limited digital functions Can be opened by the child themselves from the age of 12, incl. Digital Banking |
Product | Debit card for children | Age | From 6 years | Purpose | Learning how to handle money, withdrawing cash, making cashless payments, online shopping (if approved by parents) | Special features | Parents can set daily and monthly limits flexibly and have extended control functions (e.g. to change the limit to CHF 5 per day). No overdraft possible |
Product | Debit card for young people | Age | From 12 years | Purpose | Withdrawing cash, making cashless payments, online shopping, making purchases worldwide | Special features | No overdraft possible, fixed daily and monthly limits, certain merchants and high-risk sites blocked by default |
Product | Prepaid card | Age | From 12 years | Purpose | Making purchases worldwide, cashless/online payments | Special features | Only the credit loaded onto the card can be used, no debt |
A debit card is a good entry-level solution for learning to handle digital money and to practice using a card. Depending on the bank, debit cards for children are available from the age of 6. However, they are only recommended by educational experts when the child is mature enough and feels confident handling cash – often from around the age of 12. That’s why children aged 12 and over can usually apply for a debit card themselves.
Prepaid cards are also available for children from the age of 12 and make sense from around this age, provided the child has the necessary maturity: a prepaid card is a good way to practice managing a set budget. You and your child have extra security because in the event of fraud – for example when paying abroad – the maximum amount of credit that can be lost is the credit loaded onto the card.
Credit cards, on the other hand, can generally only be applied for from the age of 18. They are not suitable for children and young people due to the possibility to use money in advance – which increases the risk of debt.
When choosing a card and the appropriate time to give your child a card, you should always be guided by your child’s maturity when it comes to dealing with money. The way they handle pocket money is a good indication.
Before giving them their own card, you could pay their pocket money into an account together, then check and discuss the account balance in Digital Banking with them. Weigh up your child’s situation in life and whether or not they need a card. If they have to buy their own public transport tickets, for example, this could be a good time to introduce payment by card.
Once you have compared all the offers available and discussed any open questions, it is advisable to take this important step in your child’s financial education together and to go with them to the bank. If the child is under 12 years old, your signature is required anyway. You could also be on hand when your child withdraws cash from a Bancomat for the first time and makes their first payment by card or via TWINT.
You should also discuss with your child how much money they have available per week or month. Minors can’t go overdrawn on their account. Basically, the same principle applies as with a piggy bank: once it is empty, there is no money left. Take a look at the child’s monthly account statements together. This way, your child will understand what they have spent their money on and can learn to use it more consciously over time.
It is also important that you explain to your child how the various banking products work and the risks involved. Close monitoring makes sense, especially with regard to digital media, online purchases, apps and the like.
But also remember: children need space to take responsibility. Too much control inhibits the learning effect.
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