Although many believe that children should not be taught financial literacy in childhood and that they should be allowed to enjoy life carefree, experts do not advise this. The sooner you start the process of teaching children financial literacy, the sooner you will create responsible people from them who will have a carefree and debt-free future.
It is a parent’s responsibility to teach children various life skills, and one of the most important side concerns is precisely money and kids debit cards. And many young people later in life have big problems with money because they didn’t learn how to make a savings plan, conscientiously and responsibly spend money and invest in stocks.
Thanks to the development of technology, options have appeared that offer all these possibilities by having a credit card for children. In addition to teaching children the various skills and responsibilities of doing chores within the household and community, they are taught to save, invest, spend money wisely and donate to the needy.
A Credit Card is an Improved Version of a Piggy Bank
This type is the right tool for teaching children about money. Parents open an account in the name of the children, linking theirs with theirs and providing the children’s personal information. The account is activated by depositing money into it, and it is ready for use. In addition to the fact that within the mobile app, children have various tables of activities, and obligations, which can be adapted to each age.
Children can receive an allowance and extra money by doing extra household chores; they can also get negative points if they don’t complete the tasks on time. You have to be careful when choosing the right option for your children and family, some offers are more expensive, and some are cheaper. One of the best at the moment is BusyKid because it offers the possibility of payment by other people with a QR code.
What Happens When Children are Not Taught Financial Literacy on Time?
There are various problems that children will have later in the future if they do not have all the necessary knowledge about financial literacy. Money is not the most important thing, but it is necessary for life. If they learn to handle money in the right way, they will get rid of stress, uncertainty, and debts in the future.
Reasons Why it is Excellent to Teach Them About Money Management
1. Financial Education Helps Them Grow into Financially Independent Adults
The vast majority of adults have a problem with money because they did not learn the basics in time, which creates problems in their lives, such as numerous debts and a lack of savings and money investments. To avoid this, it is important to educate children about money and teach them basic rules, a savings plan, investing in stocks, and rational spending.
2. Money is All Around Us
Money is the most important secondary thing in the world; if children learn the basics in time, they will have a carefree future. Children who learn to handle money are more independent, have less anxiety and fear, and are not afraid to invest and earn their money by doing various part-time jobs.
3. Encourage Them to Make Their Own Money
Encourage children to earn money in a way that suits them best. Children are real small entrepreneurs, and it’s up to you to encourage them to find their niche. Whether it’s selling lemonade, walking dogs, looking after animals, babysitting, selling items they make, maintaining lawns, or clearing snow in the winter months. There are options such as BusyKid, which allows a third party to pay directly to the account through the BusyPay option, which is one of the many benefits.
4. A Savings Plan
Thanks to technology, children can create monthly and annual savings plans together with their parents. Many parents can put the minimum amount that they have to put into savings when the parents pay the allowance and during their earnings.
Children cannot take money from savings because the money is blocked; parents can set special restrictions when it comes to this. Since parents have control over the transactions carried out by their children, they also have complete control over their savings.
Usually, when the children come of age, parents can withdraw money from savings for education, buying a car, or something else.