Australian bank Westpac is now offering debit cards to children as young as eight, a move aimed at helping them develop essential financial skills. The bank has lowered the eligibility age from 14, but the cards come equipped with a range of parental controls and safety features. These include daily and weekly spending limits, push notifications to parents, and restrictions on online payments.
This initiative follows a Westpac survey indicating that three-quarters of parents are already teaching their children some form of digital financial literacy. More than half of the respondents expressed interest in giving their kids a debit card as a way to impart lessons about money management.
Additionally, nearly three-quarters of parents support the idea of their child having a transaction account, and three out of five are comfortable with them holding a debit card. Nonetheless, many parents remain apprehensive about online safety and spending habits. Close to 40% highlighted that the lack of controls to mitigate online threats and monitor their child’s spending is a significant concern.
Chris Brell, acting MD of cash and transactional banking at Westpac, emphasized the importance of early financial conversations. He stated, “Talking about money early and enabling your child to put saving and spending into practice helps develop important financial literacy skills. Our parental controls and safety features will help parents teach their kids about the value of a digital dollar while keeping them and their money safer.”