A debit card is a simple yet powerful financial tool that gives you a lot of flexibility and control over your money. Most of us receive one when we open a checking account, but we may not be aware of the advantages and disadvantages. Here, we break down the key benefits of a debit card and how to maximize its potential.

Convenient and cost-effective

• Debit cards are accepted in most stores and online, so you can make purchases without toting around cash or checks. 

• Unlike credit cards, most debit cards don’t charge fees or interest because they’re linked directly to your checking account. Whatever you spend is deducted from your balance, rather than accumulating on a card you have to pay back later. 

• If you need cash, you can withdraw funds from your checking account at an ATATMM. 

Easier budgeting and financial control

Withdrawing money directly from your account is an automatic way to help you budget and keep control of your finances. 

• With a credit card, you could run up a large bill without realizing it - and end up owing even more in interest . 

• Debit cards make it easy to track how much money you have to spend. Each time you log into your account, you get a clear log of all your transactions, which may help you stay more mindful of spending within your budget. 

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Security and fraud safeguards

Though debit cards are convenient, you do need to monitor for fraud and security, since they’re connected to your bank account. 

• Debit cards typically come with built-in technology, like chips and contactless payment options, that help reduce the risk of fraud. 

• Visa and Mastercard debit cards typically offer similar fraud protection and security as their credit card counterparts. However, always report any suspected fraud or security breaches as soon as possible to protect your accounts. 

Accessible—no credit check needed

Unlike credit cards, which can be difficult to acquire if you’re still building your credit or don’t have a high enough score, debit cards don’t need a credit check. Just open an account, fund it, and start using your card. 

Since you don’t need credit, debit cards can also be an effective way for kids and teens to start building smart budgeting and spending habits early. 

How Greenlight elevates the debit card advantage

Greenlight’s debit card for kids combines the benefits of a standard debit card with safety features* and a powerful money app, taking your family's financial game to the next level. You get:

Parental controls and oversight

While normal debit cards provide a built-in budgeting advantage, Greenlight’s app ties in features like Spend Control, which allow you to set spending limits and help your kids learn to manage their money while still feeling like they’re in control. 

You can also set account monitoring alerts** to keep your kids’ accounts safe and protect your family from fraud. 

Money management and financial literacy

Empower your kids to earn with chores and allowance management. You can track their progress and automate payments directly into their Greenlight account. 

Your family also has access to Greenlight’s library of financial literacy content, including the LevelUp game best-in-class curriculum, educational challenges, and rewards. 

Simple but powerful tool

A debit card can be one of the simplest ways to manage money, offering convenience and security without the risk of racking up debt. But when paired with tools like Greenlight’s  #1 family money and safety app, debit cards can help you budget smarter, build healthy financial habits, and have more peace of mind.

More to explore:

• A beginner's guide to how debit cards work

• 7 types of debit cards and how to choose one

• What the numbers on your debit and credit cards really mean

Want money-savvy kids? Introduce them to smart money habits through hands-on learning and real-world practice with Greenlight. Try Greenlight, one month, risk-free.† 

*Requires mobile data or a WiFi connection, and access to sensory and motion data from cell phone to utilize safety features including family location sharing and driving alerts and reports. Messaging and data rates and other terms may apply.

**Premium monitoring services are offered by Experian.