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Debit card

children don’t need to carry cash

5 reasons why you should get a prepaid card for your kids

By Debit card, Educating

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.

difference between spendsafe and a bank debit card for kids

Difference between SpendSafe and a bank

By Debit card, SpendSafe

There is no such thing as ‘too early’ when it comes to learning about matters such as financial independence and the functioning of our financial institutions. The need for understanding these subjects is amplified in the current unfavorable economic climate created by the Coronavirus global pandemic. Thus, it is important for your kids to know about the importance of saving money and know how to use their allowances in a sensible manner.

Although, it is important to take into account the age of your child while educating them on financial matters because, at their age, understanding nuanced financial jargon is nearly impossible. As the adage goes; ‘half-knowledge is worse than ignorance’; thus, directly exposing your children to our conventional banking systems at an early age could, in fact, encourage irresponsible fiscal behavior further down the line.

It makes more sense to gradually ease them into this process and communicate with them in a format they understand best. It is a well-established fact that children respond best to a ‘task-reward’ system where they are awarded for successfully completing a task or a chore. Whilst creating and maintaining this task-list along with the respective remunerations etc. could be tedious for you, an intermediary such as SpendSafe could sort you out.

SpendSafe is an app which offers you prepaid debit cards for teens on which you can load money for your children. Your children can unlock those funds for their personal usage upon completion of certain tasks or chores, as decided by you. This mechanism works better than directly handing them an allowance as it psychologically trains their mind for the real world, where they will have to earn a living.

In order to streamline their children’s spending through SpendSafe, parents first need to sign up and then subsequently register their children individually before setting an allowance for them and choosing from a list of vendors where their children can spend the allotted money.

However, there are several more key points of difference between SpendSafe and standard banks:

  • Reduces mismanagement of funds: A hallmark feature of SpendSafe is that it helps you choose the vendors with which your children can execute transactions. They can choose from a vast range of vendors ranging from restaurants to shops and from movie theatres to bookstores. A standard debit card, on the other hand, can be used to pay almost anyone; thereby often resulting in misuse of parents’ hard-earned money.
  • Levels the playing field: On the face of it, the platform seemingly tips the scale in the parents’ favor. But in reality, it gives the children more autonomy as they can pick and choose the tasks they wish to do, and in a way, making the money they need. Thereby improving their decision-making, boosting their self-esteem, increasing their understanding of finances and thereby helping you in creating a more holistic and well-rounded individual.
  • Reduces chances of mishaps: Since this method eliminates the use of cash, it eliminates the chances of cash-related bullying or extortion of any kind, which is an oft-ignored fact but is definitely noteworthy.

Prepaid cards are easier to obtain than standard debit cards due to the stricter regulation by banks, wherein more of your personal information is requested, along with a thorough check of your banking history. Obtaining a prepaid card is relatively hassle-free.

Thus, if you’re looking for a prepaid allowance format which offers you more control as well as allows your children to have a sense of autonomy, then click here to register with SpendSafe, one of the best debit cards for teens.