Happy Tuesday, readers! My question of the day is one I’ve been wondering about for a few weeks now:

Can teenagers use Apple Pay?

In full disclosure, my husband works at Apple, but he’s got nothing to do with Apple Pay, at least as far as I know, and I don’t have Apple Pay, myself. So, I attacked this from an outsider doing research, not from personal experience or insider info.

But, it seems like YES, teens can use Apple Pay, (1) if they’ve got a debit or credit card to attach it to, and (2) an iPhone 6 or 6 Plus or Apple Watch. When the watch comes out, it needs to be linked with an iPhone 5 or later model.

In a lot of articles, authors misleadingly reference that the Apple Pay needs to be linked to your credit card, which made me think that not many teens can use the service because the CARD Act of 2009 made it difficult for teens under 21 to get a credit card without a parent cosigner. So, not that teens were banned from Apple Pay, but rather their lack of credit cards made it impossible; not so. A teen could link their cosigned credit card account or a bank account, so then Apple Pay would function in place of their debit card. Supposedly, you’ll eventually be able to link prepaid cards, which would allow teens or unbanked individuals of any age the ability to use the technology, given they have the required Apple devices.

Here’s a good Forbes article explaining Apple Pay; it’s from late October, shortly after Apple Pay was announced, but it’s still pretty accurate. You can use it as a reference for updating your existing personal finance curriculum, which may not include such up-to-date payment options. I also like this article from the Kansas City Star, which reiterates the ease with which paying with plastic (or in this case, your phone) can lead to overspending:

According to Dun & Bradstreet research, people spend 12 to 18 percent more when using credit cards than when using cash. Separately, McDonald’s has said its average transaction increased from $4.50 to $7 when customers used plastic rather than pay with cash.

So, it appears teenagers can use Apple Pay, with a bank account or credit card and the right phone, but, just like with other payment methods, a budget is key. If you’re looking for a super comprehensive take on budgeting, that students LOVE completing, take a gander at our Budgeting Unit Plan.

About the Author

Jessica Endlich

When I started working at Next Gen Personal Finance, it's as though my undergraduate degree in finance, followed by ten years as an educator in an NYC public high school, suddenly all made sense.