Perhaps you have wondered whether or not you should teach your kids how to handle finances early on. It’s the opinion of many experts that this is an excellent idea and doesn’t really hinder kids from being kids and experiencing their childhoods so it should be done to help them later in life.
One of the methods to do so is what we’ll be discussing in this text today so we hope it helps.
Experts and psychologists advise that children should be taught finance as early as possible because later they will have and easier time in life and likely thank you for it down the line.
Many studies show that children who are not raised in such a fashion have a higher chance of going into debt later in life.
If the child is younger, let him know in advance that you will go grocery shopping together. You can even give them some cash to pay at the cash register, it’s a small action but can be quite impactful.
Do not turn every trip to the store into a chance for them to get something for themselves. It’s important that they understand early on to differentiate between needs and desires.
Children of preschool and school age
Since these children know math, they also have a better understanding of pocket money. With the amount influenced by your financial situation, introduce a weekly or monthly reward for completed household and/or school tasks.
An increasing number of parents are deciding on children’s debit cards and through these accounts, they make pocket money payments and control the children’s financial activity.
Teens and adolescents
Children of this age have greater demands and needs, they go out more for coffee and outings, and due to how their social lives work will generally spend a bit more than before.
Therefore, the pocket money must be a little higher than the other children’s, how much?
The first step should be to master the weekly pocketbook and save money, once the children have mastered it, you can easily move on to monthly money management.
What is a Prepaid Debit Card for kids?
They are mostly intended for minors. Because they don’t work like regular credit cards. An adult makes an account with the name and surname of the child that is linked to their account.
The thing about this type of children’s card is that the consumption is limited by the payment. You cannot go into the red and spend as much as you want. There are certain restrictions but these aren’t that big of a downside so we would say they are not likely to be dealbreakers to most.
Along with the card, you also get a mobile application
What’s interesting about the app are the lists and types of different aspects of the financial spectrum.
There are lists for doing chores and responsibilities, exemplary behavior and good grades in school, hobbies, humanitarian work, and helping the needy.
Parents and children together create “missions” to complete within the given time. This allows kids to learn about money, shop, and donate, but also take on debt, of course with their parents.
What’s the minimum age for one?
When you go about choosing a bank and type of service provider, you’ll be required to do some research and see which option is best suited for your family’s needs. Some banks do not have an age limit, while some have 6, 10, and 13 years.
Why this type of card is a good choice
The big advantage with them is that adults are given a lot of control over the transactions, and the application has everything needed in one place.
It’s important that they learn all these lessons at a young age. Kids are far easier to teach things than adults, so it’s better for them to learn it sooner than later when it’s more difficult.
There are numerous offers on the market, and the demand is increasing, we would suggest Busykid, which has won numerous awards, also Greenlight, GoHenry as well as Copper Card.
No matter what you decide on it’s certain to improve their future given the impact of this knowledge.