Kid Debit Cards: The ‘Weekly Allowance’ Joins The Digital Era
In an increasingly cashless world, it makes no sense teaching our kids the basics of personal finance through bills and coins. It’s about time that the weekly allowance went through a transformation.
Parent-controlled debit cards for kids, such as Geltr — launching first in Mexico and then in Brazil, create an ideal medium for financial education as well as teachable moments in the parent-child relationship. They also allow for independence and flexibility for the child while offering safety and peace of mind for the parent.
Let’s take a closer look at why every parent should consider getting debit cards for their kids:
If kids lose their debit cards, they don’t lose their money
It’s all too common for a kid to lose a $10 or $20 bill, or worse — get it stolen. And just like that, it’s gone forever.
With a debit card, the parent doesn’t have to worry about their kids losing their hard-earned money. And if the child does lose their card, from the convenience of the parents’ phone they can simply freeze the card until a new one arrives. No lost money — ever. It’s as simple as that.
Parents can control where, when and how much their kids use their cards
Give a kid cash and they’re likely to spend it quickly and without much thought. With a card, the parent can use in-app controls to allot money across spend categories tailored to that particular child.
Think of an 11-year-old boy obsessed with gaming. A parent can dictate that this child can use only up to 25% of their allowance on gaming products. It’s not saying no — its saying yes in a controlled and measured way.
His 14- year-old sister likes to spend her allowance on clothes — often items the parents disapprove of. The parent can set the account so that any retail purchases must go through parental approval and can either decline or approve the purchase before sending money as needed. All this happens within seconds!
This allows the child to earn their parents’ trust and gain more independence in a tailored and age-appropriate way that grows with them. This makes for a perfect tool, especially if there is more than one child in the family.
Parents play an interactive role in helping their child learn to manage their money.
The best thing about these cards is that they create teachable moments in the parent-child relationship. The use of control settings encourages interaction between parent and child while showing children how to manage their money in a more mature and responsible way.
When it comes to teaching kids about money, parents should take advantage of resources and technology that’s available to them in addition to parent-led learning. The more conversations a parent has with their child about budgeting and spending, the better they’ll be able to manage money on their own in the future.
If you want to learn more about Geltr and discover how it can help you guide your child towards becoming a financial-savvy adult, click here or drop us a line email@example.com.