Regardless of your own financial standing, it is vital that you teach your child the basics of managing their own funds. This helps them learn an essential life lesson and allows them to move more confidently into fiscally responsible adulthood.
Thankfully, starting on this path is easier than ever with modern tech and tools. There are now even kid-friendly debit cards you can tie into apps for accomplishing chores, making teaching your kids about money more of a game than a lesson. Click here to learn the benefits of getting a kids debit card below.
1. A Debit Card for Kids Introduces Them to Modern Payment Methods
Let’s face it: Handing your child a few bucks from your pocket is much easier than taking them to an ATM. But even when the former sounds more convenient, the latter remains more responsible.
The reason is simple. When you provide your kids with cash at home, it doesn’t introduce them to the habit of modern financial processes. On the other hand, helping them operate a debit card provides a good point for an introduction to standard banking procedures.
Since dealing with checking accounts and banking processes is something that they will be handled in a few years, this familiarizes them with an essential yet crucial life skill.
2. It Instills the Habit of Saving
Getting a kids debit card not only tells them how to use the ATM, but also opens doors to saving some amount in their account.
Since debit cards for kids are gaining in popularity, it’s easier than ever to open a checking account that’s designed with your children in mind. Through mobile apps and bank visits, your children can become more interested in saving their allowance or cash gifts for future use. Making saving a habit now will be a super helpful skill to have as they transition into adulthood.
3. It Makes Them Financially Responsible
When your kids are operating their accounts or have a kids debit card for it, they treat their funds with more responsibility.
You can also boost this trait by introducing them to withdrawing from their account balance only when they need to do so. By elaborating on the idea of budgeting and prioritizing their non-essential purchases, you can help them be ready for handling their financial matters a few years down the line.
4. It Encourages Them to Make Their Own Decisions
No matter how nostalgic we get about our child’s first step or their first word, they eventually have to grow up and leave the nest. What we can do is prepare them with the tools they need to be successful in life.
Giving your child control over their own debit card and checking account – while continuing to monitor it via parental controls – can help them feel like they’re in the driver’s seat when it comes to their money. By making daily or weekly financial decisions, kids can learn first-hand what it means to spend vs save and the consequences of both.
As a result, your kids’ debit cards can help them feel more financially independent and ready for the time when they face the actual challenge of managing their finances.
Due to these reasons, you must look into banks and financial services providers who offer kids debit cards. While it may only take a few minutes for you to open a business account, it may take a little more effort to get a child’s account started depending on which bank you choose. However, it’s worth the effort because it will add to your child’s assertiveness, self-confidence, and management skills in the long run.