More and more adult people are living paycheck to paycheck, and they rarely or never have money left over to save. It is of crucial importance to teach children to save time, how to relate to money, to handle it, that is, to teach them financial literacy in general.
Few parents decide on this move because they believe that it is too early to introduce their children to the world of finance and that it will disrupt their childhood, which is completely wrong.
Even many experts advise that the earlier you introduce your children to the world of finance, and start teaching them, they will adopt everything they learn as a habit that will eventually develop into a commendable skill.
You must have googled the terms, “the best kids debit card”, but you were confused because of the multitude of choices and options. Don’t worry, this article is right for you.
1. Getting to know the world of money
Before children even begin to learn about finances, they must know where the money comes from and how it is earned. Sometimes children, looking at their parents, every time they approach a magic machine (ATM) the money just pops up.
However, this is not the case, the only way to get money is through hard work. Explain to them that when they are in kindergarten or school, the parents have to go to work, to ensure and provide everything for their family for a normal and healthy life.
2. The difference between wants and needs
One of the basic things you have to teach them from a young age is the difference between what you need to spend money on and wishes that can sometimes be granted when children deserve it.
Explain to them the way bills work, that every month parents have to pay rent, loans, mortgage, car fuel, buy groceries, drinks, clothes and shoes, bills, and sometimes unplanned expenses pop up. Therefore, there is little money left for splurging, and the wishes that children have must be earned to be fulfilled.
3. Provide them with kid’s credit card
This innovation has made life easier for parents and children, and with the mobile application everything about finances on their phone. The opening process is fast and simple, and by depositing money into the account, it is automatically activated.
Children have countless possibilities with this type of tool for learning financial literacy, creating a savings plan, online spending, earning, investing in shares, and donating money to the needy, all with specially designed customizable activity tables.
Parents can give their children an allowance via card, and they must immediately put part of the money into a savings account that the children cannot access, usually 2% of the total money is set aside.
4. Earning and investing money via card
Children under the supervision of their parents can invest in their beloved and well-known brands and companies, and they can monitor whether the shares are rising, falling, or stagnating.
Some individual options allow third-party activation, please note that this is only possible with the corresponding QR code. This is ideal for gifting children, with motivation, and the possibility of creating their income.
Activity tables with this type of card
The activity tables refer to jobs, duties, curricular and extracurricular activities, household duties, and common ones. Each table can be adapted to any age of the child and this is one of the ways where children earn extra money from their parents by fulfilling their obligations.
4. A higher goal for savings
Children must have some higher goal to which they will strive to save and which will motivate them. Here, sometimes they decide what they are saving for, whether it is for a new property, a car, or an exotic trip. In this way, they will stay motivated and save more.
5. Encourage them to find additional work
Usually, the money that parents give to teenagers is insufficient, so they decide to find a part-time job. There are various jobs that they can do, it’s up to them to decide on the one that suits them best and that they enjoy.
From working in a coffee shop, or clothing store, babysitting, or taking care of pets, it doesn’t matter, it’s just important that they have additional income that they can cover their expenses.
6. They learn from mistakes
As parents, you should always be there to help them, but with advice and not with money. Each of us learns best from our mistakes, and so do children. They must bear the consequences of their actions and take full responsibility. Children know how to find a way out of a problem on their own.
Leave a Reply