Children aged eight can have their own Mastercard: Debit cards can be topped up by parents for their offspring to use

Children as young as eight are being offered celebrity-endorsed Mastercards to use in shops, online or at cash machines.

The cards, created by British company Osper, can be topped up by parents with the child’s monthly allowance so they can spend it at will.

Banks already issue debit cards to anyone over the age of 11, but it is thought this is the first time younger children will be able to use them.

TV presenter Davina McCall is endorsing the prepaid debit card on her website, after it was launched last week.

Osper, which is backed by MasterCard, said it aimed to help children learn how to manage their finances at an early age. 

But critics questioned whether the cards were simply grooming children into becoming ‘mini consumers’.

Parents can open an account for their child through the Osper app, prompting an orange chip-and-pin card to be sent under the child’s name.

They can then activate the account by making a lump sum transfer or setting up a regular direct debit from their own bank account.

Children can only spend what is already in the account, as there is no overdraft facility.

The app allows parents to review what has been spent, while children can log in to check their balance and request emergency transfers.

The card can also be locked via the app if it is lost or stolen, blocking all purchases.

The service is free for the first year and then costs £10 per year thereafter.

McCall said in a video: ‘There’s something about the app and the way it works and how simple it is that just feels safe.

‘To me, that’s really important as a mother. It’s teaching me to relax a bit when it comes to finances and my children.’

But one critic wrote on an online forum: ‘My under 12s find it very hard to grasp the value of cold hard cash. When their total stash after a birthday comes to £100, they can’t appreciate that it would take many hours’ work to earn that in a typical Saturday job.

‘I can’t think that making cash something invisible would improve things. It would be even less tangible to them.’

Another wrote: ‘Religion works on the principle of ‘get ‘em while they’re young’.

Consumerism is the new religion so I guess debit cards for children was inevitable.’

The Osper card follows another prepaid card aimed at children called goHenry, which works in a similar way and allows parents to set controls.

There are also a variety of other prepaid cards aimed at teenagers, such as the MeCard, also a Mastercard.

Many British banks require youngsters to be 11 years old to receive a debit card, with some setting a minimum age of 16.

In 2008, it emerged Lloyds was sending children as young as 11 Visa-enabled debit cards without the knowledge of their parents.

It was feared children may begin using them to buy cigarettes, drugs and X-rated videos over the internet.

But both Osper and goHenry have pre-programmed restrictions preventing youngsters from using their prepaid cards to buy adult items.

Original article can be found here.