Reading Time: 3 minutes

One of the most important secondary things in the world is money, and knowing how to manage it is a skill. We certainly suggest that you give them allowance money, but first of all you create an account for them and give them a children’s credit card.

This type of card offers countless possibilities and imitates the world of adults, for which it is fully prepared.

There is a kids credit card option as well as a slightly more expensive one. It is up to you to choose the best one for your family according to your income.

By owning this card, children are taught responsibility, financial literacy, and skills of crucial importance for their future. Before, children used to save money in piggy banks, but if necessary, they would take money out of it.

Parents never knew how much money their children save.

Things change when children’s credit cards hit the market, offering all kinds of options for saving, investing, donating, earning, and spending money.

In addition to these possibilities, what is sensational is that some of them offer kids debit card-free versions.

Children completing tasks on time can earn extra money, and for those who do not do so, their parents can decide to reduce the allowance by a certain percentage.

What do these kind of credit cards offer?

Credit cards for children are similar to adult credit cards, they offer many options for children.

Parents can open an account on behalf of their children by providing the child’s basic personal information.

There are various offers from giving allowance money, the possibility of earning, spending, making a savings plan, investing in shares as well as donating money to the needy.

The tables in the offer are adaptable and intended for each child’s age.

Together with their children, parents fill out tables with tasks ranging from household chores to curricular and extracurricular activities.

Reasons why it is important to give children pocket money

  1. Explain to them where the money comes from

Following the possibilities and age of the child, the parents determine how much allowance the children receive.

You have to teach them to appreciate money, that it comes with hard work and that it doesn’t fall from the sky. When the children have their money, they can use it as they wish.

  1. Increasing the allowance through the effort

If the children perform their duties, they clean the toys, the bed, the room, and other household chores.

You can increase their pocket money or pay extra money to the card. Children must know that there are responsibilities and obligations that they must fulfill and help in the collective household.

  1. Don’t bail them out

If the children spend money, don’t let them talk you into giving them more money. They must accept and bear the consequences of their actions.

And not to pull the parents by the sleeve every time they run out of money. The goal is to teach them how to dispose of that money, spend it rationally and save.

  1. Make a good savings plan

Every time children receive an allowance, they must set aside a percentage for savings. I cannot withdraw or spend that money.

Explain to them why it is very important that they save money for a higher goal. Children need to know that sometimes it is better to deny themselves instant pleasures to treat themselves to better things.

  1. Encourage them to become small entrepreneurs

Children can take on extra household chores, selling lemonade, cleaning snow, looking after pets, walking the neighbors’ dogs, tutoring, babysitting, etc.

The possibilities are many, you just have to recognize what it is that your child wants to do and support them in it.

Help them make flyers that you will put together with them around the neighborhood looking for work.

  1. Let them participate in grocery shopping

We suggest that you let them spend part of the amount they earn or receive as pocket money for groceries.

In this way, you teach them to participate in the collective and to bear a small part of the costs. In this way, they will appreciate the money they earn and receive as an allowance.

Conclusion

Our advice is to give them pocket money from a young age, thus teaching them responsibility and preparing them for the future.

No beginning is easy, the most important thing is to start with teaching and easy dosing of money.


This content is a joint venture between our publication and our partner. We do not endorse any product or service in the article.