Parents today are navigating a financial world that looks nothing like the one they grew up with. And for many families, one question keeps coming up: When is the right time to give your teen a debit card?
With digital payments now the norm for young people, new research suggests that teens may actually learn better habits with a card in hand. But it also highlights some surprising tendencies around cash, spending, and savings that families may want to consider.
Don’t Miss:
There is a clear generational shift in attitudes toward physical money, according to Cash App’s Gen-Z Financial Future survey. More than half of Gen Z respondents said they’re more likely to spend impulsively when they have cash, and nearly a third see cash users as “out of touch” or even “cringe.” At the same time, 53% reported using cash only as a last resort.
These attitudes may be shaping how young people manage their money. Many Gen Z consumers are already using checking or savings accounts, but the survey found that savings levels remain low: about 46% reported having less than $500 saved. Limited awareness of interest rates may also be contributing — only 44% knew the rate on their savings account.
Debit cards are becoming a common tool for teens to build financial skills. Most major banks allow teens as young as 13 to open checking accounts with a parent or guardian as a co-signer, according to Bankrate. Parents often see debit cards as a controlled way to help their children practice budgeting while still maintaining oversight.
Trending: Have $100k+ to invest? Charlie Munger says that’s the toughest milestone — don’t stall now. Get matched with a fiduciary advisor and keep building
The Cash App survey reinforces that idea. Parents of teens ages 13–17 reported that giving their teens access to a debit card or savings account has:
-
Increased their financial independence
-
Encouraged more responsible spending
-
Helped them build budgeting confidence
This suggests that early hands-on experience may help teens develop better long-term habits, especially when combined with parental guidance.
Another major finding from the survey is that earning interest is a powerful motivator. Over three-quarters of Gen Z respondents said they’d save more if they were earning interest. In response, Cash App recently expanded its 3.5% APY savings feature to Sponsored Accounts for teens ages 13–17.