When children are small, we don’t burden them with the outside world, and we give them everything they want. However, this way of buying children anything they can think of will only create problems for you later.
Children need to understand where the money comes from, and they can understand this best through play and by watching their parents. A children’s credit card is the perfect tool to teach children to handle money conscientiously and at the same time teach them life skills.
Children, whatever their age, must know that they have certain obligations and responsibilities that they must fulfill within the family and community. There are options where a fee is paid, but there is also a kid’s debit card free option.
Where the money comes from
For children to understand how a card works, they must first know how money is made and where it comes from. You can explain this to smaller children through the game of seller and merchant, and let them be at the cash register.
It is very important that they distinguish wealth from luxury, that you have to work hard for money, and that it doesn’t fall from magical trees.
How to explain to these children what credit cards are
Explain to them how your card works, how the money goes to it at the end of the month, and that with this amount the parents have to cover all living expenses, such as bills, rent, food, and drinks.
The money must be conscientiously and wisely spent and saved to enable a better life. Tell them that there are children’s cards that allow children to be partly independent, learn about financial literacy, a savings plan and program, and various charts of chores and duties.
Suggest that you give them pocket money via card
Children with kid debit cards can invest, save, donate and earn the money. Everything depends on the children, and how much they strive and perform the tasks that their parents assign on a daily, weekly, and monthly basis.
They can get bonuses and extra money if they finish all their obligations on time.
Put them on the payroll
Many parents, when they open an account for their children, put them on the payroll.
Children earn money by doing extra jobs such as; mowing the grass for fellow diners, walking the dogs, looking after siblings and other children, and many other jobs.
Children will feel more useful and efficient and will look for new ways to earn money.
Best options on the market
Options that are best in the market are BusyKid, FamZoo, and Copper.
BusyKid is one of the most famous options and a favorite among parents when it comes to children’s financial literacy and the acquisition of valuable skills.
Children within the offer can invest, save, spend and donate money to organizations as they wish.
Parents set chores within the needs of the family and distribute tasks according to the age of the children. Children get bonuses as well as negative points.
The innovation of BusyKid is that it has a BusyPay option where a third party can deposit money into the child’s account with a QR code. This payment method is ideal for holidays and birthdays.
There are two offers, monthly from $3.99 and annual from $38.99 with which you save 20% of your money. This price includes 5 cards for children, and there is no minimum age limit for children.
FamZoo is a prepaid debit card and the age limit is from 6 to 22 years. This option is a bit more expensive, where you get 4 cards for $5.99 per month, while you pay $2 for each subsequent card.
Parents can set various chores and duties, a savings plan, and receive notifications on the app when their child spends money.
The Copper debit card is intended for children and teenagers aged 13 to 19. This option is completely free and allows parents to create a chore table as well as a consumption and savings plan.
There is also a money quiz within the application that children can play with.
We have given you tips on how to explain to children what a credit card is and how to use it. It is up to you to choose the option that is most acceptable to your financial situation and the needs of your family.