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Finance baby steps: When to add a child to your debit card
Kenyan banking law requires account holders to be at least 18 years old. But most banks bridge this gap with junior or teen accounts for children between 10 and 17 years.
Should you add your child to your debit card? As more Kenyan children travel abroad for school trips or shopping, a new parenting trend is taking root, giving them access to debit cards.
For some parents, it is about teaching financial responsibility and ensuring safety while abroad. For others, it raises tough questions about the risks of early exposure to money management. But how young is too young to have a debit card, and what should parents know before adding their child as a secondary cardholder?
Clement Malik, a financial advisor, says the answer lies less in whether you should and more in how you do it.
“Adding a child as an authorised user on a debit card can be a sound financial education strategy when executed with structure and supervision,” he says.
A debit card, when carefully monitored, becomes a tool for teaching money management. “It should be treated as a teaching tool, not unrestricted financial access,” Mr Malik says.
The idea works best, Mr Malik says, when a child already receives a regular allowance or pocket money, when parents want to introduce budgeting lessons through supervised spending, or when the child has legitimate needs like school-related expenses.
But there are clear red flags. “It’s ill-advised if the child lacks maturity, if parents don’t intend to monitor spending actively, or if the family’s main account has substantial funds at risk,” he says.
The right age
So, what’s the right age? Mr Malik says most children between 12 and 15 are mature enough to start. At this stage, they’re curious about money, handle small social spending, and are open to lessons about budgeting.
“The key maturity indicators are how responsibly they manage allowances, whether they understand needs versus wants, and whether they respond well to boundaries,” he says.
Kenyan banking law requires account holders to be at least 18 years old. But most banks bridge this gap with junior or teen accounts for children between 10 and 17 years.
These are joint accounts managed by a parent or guardian who retains legal and financial responsibility. The child may be issued a linked debit card with controlled permissions, but all the liabilities remain with the adult.
Globally, the principle is similar as children cannot legally hold full banking responsibility; the parent acts as the custodian.
However, for the credit card account, things are different. For the debit card, the child spends available cash directly from the parent’s account without any debt risk. On the flip side, the child accesses a revolving line of credit on a credit card. Misuse could damage the parent’s credit score in the long run.
“In essence, debit cards teach spending discipline, while credit cards teach borrowing discipline. Both are valuable, but suited to different maturity levels,” Mr Malik.
Handled properly, a debit card offers three major advantages for the child. First, they get real exposure to decision-making beyond classroom lessons about saving, spending, and budgeting. Secondly, and closely tied to this, when guarded properly, children learn the cause and effect of how small daily financial choices add up.
Thirdly, the debit card reduces the risks of carrying cash, especially for school-going teenagers. Mr Malik sees it as a stepping stone to financial independence.
“It helps children internalise discipline before they start managing their own income,” he says. The arrangement, he emphasises, is safer than giving a child their own bank account.
“Parents keep full control. They can monitor every transaction, freeze the card, or set limits,” says Mr Malik.
To make the most of the arrangement, Mr Malik suggests several safeguards. Parents might cap daily or weekly spending, enable SMS or app alerts for every purchase, and begin with small amounts before gradually increasing responsibility. “It’s about offering independence while retaining ultimate control,” he says. “Mistakes should spark discussions, not punishment.”
The underlying risks
The risks, however, are real. Overspending, fraud, theft, and, of course, parental liability. There’s also a psychological angle: children may begin to believe money is endlessly available. “That’s why communication is critical. They must connect money to effort, not entitlement,” Mr Malik says.
Banks in Kenya are catching onto this trend, though uptake is still cautious. At KCB Bank Kenya, prepaid cards for learners are gaining popularity. “Parents remain the main operators, loading the cards and monitoring transactions from their phones. They even receive real-time purchase notifications,” says Jane Isiaho, the bank’s director of retail banking.
KCB issues prepaid cards even to students below 18, but with the parents’ details on record. The setup gives children spending flexibility while keeping parents firmly in control.
Family Bank paints a similar picture. “Only about two to five percent of our customers give their children access to debit cards linked to their accounts,” says Charity Muchiri, assistant manager of card business. “Most parents prefer prepaid cards instead.”
The reason? Prepaid cards aren’t linked to a bank account. Parents simply top up money for use, reducing exposure.
Today, most learning institutions discourage physical cash. They prefer students to transact digitally. Schools even provide PDQ machines for small withdrawals. “In the last two years, about 30 percent of Family Bank’s prepaid cards have been issued to minors, compared to just two to five percent of debit cards,” Mr Muchiri adds.
Absa Bank Kenya has also leaned into this space. Its prepaid cards, according to Moses Muthui, consumer banking director, strike a balance between convenience and education.
“We see this not just as convenience but also as access and financial literacy. Prepaid cards give learners the chance to build good money habits early, without the risks that come with linking them directly to a parent’s current account,” he says.
Like other banks, Absa structures prepaid cards under the parent or guardian’s account. “This ensures protection and empowerment,” Mr Muthui adds.
“Children gain confidence to handle money responsibly, while parents enjoy peace of mind knowing they can guide and oversee the process.”
Access vs values
Mr Malik warns that wealthier families often make the mistake of mistaking access for education. “They provide the tools before instilling values, or they use money as a control mechanism rather than a learning medium,” he says. There should be a clear connection between money, effort, and values.
Mr Malik suggests the journey should be gradual, whether temporary or for long-term arrangements. Beginning with a shared account where the child has limited access to a debit card is the first step. This allows them to practice spending, but under the supervision of their parents.
As they grow older and demonstrate responsibility, parents can then move to the second stage: an independent youth account that still comes with parental oversight before fully transitioning to full financial autonomy in early adulthood.
“Done this way, a debit card transforms from a convenience into a structured pathway to financial independence,” he adds.
