Nowadays parents wish to see their children excel in their professional and personal lives and also become financially independent as soon as they can. In modern times, the higher the person’s financial literacy, the higher their chances of success.
In fact, financial literacy is very important on the personal front too as the cost of living is rising in cities globally; and with that comes the issue of managing your personal & professional finances. The good thing is, you can give your kids a head-start.
Financial literacy doesn’t necessarily mean that you have to pull-out a list of the best business schools in the country or asking your kids to invest your money in the stock market; no, it simply means to familiarize them with the idea of money management, and you can start right from the comfort of your home by getting them a prepaid debit card.
Prepaid debit cards, as the name suggests, require you to pre-load money onto a card. In addition to that, certain platforms such as SpendSafe even allow you to set tasks for your children, thereby developing a strong work ethic in them right from a tender age.
In addition to that, prepaid cards for kids are also a great idea for the following reasons:
- Offers you convenience and control: With prepaid cards and platforms such as SpendSafe you can monitor your child’s spending activities right from your mobile phone. Moreover, it offers you greater control as you pre-approve where your kids can actually spend the money from a wide array of vendors which include multiplexes, bookstores, restaurants and cafes amongst others.
- Preparing them for the life ahead: You can also choose to set a list of chores your children can participate in to unlock funds for themselves, thereby laying down early foundations for their professional lives. Moreover, they would become far more responsible with their spending, with the knowledge that they will have to earn their next allowance.
- Offers your children autonomy: It is a well-established fact that teens dislike being treated like toddlers and on the contrary enjoy having a certain level of autonomy. Despite the fact that prepaid cards for kids offer you greater control over their spending, they also offer them the agency to pick and choose the tasks they would like to undertake to unlock money for their personal use, thereby instilling them with a sense of freedom as well as making them aware of the responsibility of their actions.
- Protects their financial future: There have been numerous cases of young adults being allowed their own credit cards, eventually landing themselves up in huge debt by spending their credit in a frivolous fashion. Generally, credit card funds are seen as ‘free money’ by youngsters, who have little to no knowledge of the perils of a bad credit score. A bad credit score could make them ineligible for a student, house, and various other types of bank loans. Here, prepaid cards for kids act as a great alternative as sterner withdrawal limits help you in raising individuals with more conscious spending habits.
- Less risky than cash: Apart from saving you the hassle of fishing out for change every time your kid wants a bar of chocolate or an ice-cream, a prepaid debit card also makes it a safer experience for your child when they are out and about on their own. It eliminates the chances of theft or human error; since you can always forget your cash or misplace your wallet somewhere. A secure PIN prevents anyone from misusing your child’s prepaid debit card and in case it is lost or stolen, you can always get it blocked by calling up the customer care service.
Thus, in exchange for just a few dollars every month in the form of activation and transfer fees, you can enjoy peace of mind as well as assist your children in creating a safer tomorrow for themselves.
To register with SpendSafe, click here.