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Westpac starts offering debit cards to eight-year-olds

Australian bank Westpac is now offering debit cards to children as young as eight in a move it says will help them hone their financial skills.

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Westpac starts offering debit cards to eight-year-olds

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The bank has brought down the age at which kids can get a card from 14, although it comes with a host of parental controls and safety features, including daily and weekly spending limits, push notifications to parents, and a block on online payment.

The move comes as a Westpac survey shows that three quarters of parents are already teaching their children some form of financial digital literacy, and more than half want their kids to have a debit card to teach them about money.

Almost three quarters of parents are happy for their child to have a transaction account and three out of five are happy for them to have a debit card.

However, parents are concerned about online safety and spending, with close to two in five parents noting one of the biggest challenges is not having controls in place to stop online threats or oversight on what their child is spending money on.

Chris Brell, acting MD, cash and transactional banking, Westpac, says: "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."

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Comments: (1)

Ade Adetosoye

Ade Adetosoye Chief Operating Officer at MA GLOBAL

While Westpac's initiative to offer debit cards to children as young as eight aims to build financial literacy, it is crucial to balance the educational benefits with potential risks. Parental involvement and appropriate financial education are essential to ensure that children develop healthy money management habits without falling prey to the drawbacks of early exposure to financial products.

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