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You will need it for everything. Even kids 10 and older, will need ID cards. It will become the way you access everything in the military, base access, exchanges and commissaries, even medical care. Most military installations have an ID card facility where you can get you ID card.
Everyone is correct, it is age 10. However there are certain situation that may warrant the child to get a card before the age of 10. If the child lives with their custodial parent part of the time, then they are still eligible for medical/dental benefits and can have their ID before the age of 10.