Q: Trying to set up a childs (Under 13) user ID and password for their new iPod Touch? I have a apple ID and went into the settings but will not let me past entering a credit card? What if you don't use a Credit Card? Thanks.

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Family Sharing and Apple ID for your child - Apple Support

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Create an Apple ID for your child

Before you begin, make sure that you're using a credit card or UnionPay as your iTunes Store and App Store payment method. To comply with child online privacy protection laws, you will use the CVV, verification code sent via SMS, or security code from a valid payment method as part of providing your parental consent. If the card on file is a debit card or another payment method, you’ll be asked to provide a valid payment method before you can continue. After you create the child's Apple ID, you can change your payment method.