Money is an essential aspect that ensures proper living conditions. Without sufficient money, it is impossible to purchase utilities or maintain a good standard of life. As adults, we do understand the importance of money in our lives. But how do we ensure that our children are adequately educated regarding the importance of money?
In this article, we will discuss how debit cards for children can be a necessary tool to instill knowledge about the use of money among children. Children’s Debit Card is a financial product that allows parents to monitor and regulate their kids’ spending and ensures that children get to know about spending and saving.
We are well acquainted with the idea of a piggy bank which is probably the first type of savings tool introduced to a child. But as the kid grows up, it is necessary to instill the idea of banking and new facilities like Insta Pay and online investments.
What is the right time for teaching kids about money?
Parents often find it difficult to broach the subject of money before their children. There is a preconceived notion that discussing financial issues with children increases their stress. Some parents also feel that their kids are too young to be involved in worldly matters that involve money making and/or spending.
They feel that too much information regarding financial aspects can rob the children of their childhood.
Kids are resilient and can learn new information quickly. Instilling the concepts of earning, spending, and saving quite early in life is extremely helpful in the long run. A child who is well-versed with the utility of money in life will grow up to be a knowledgeable adult. They won’t be careless with their earnings and will be more confident about the investments they want to make.
Hence, setting preconceived notions and worries aside, parents can initiate discussions on money when their kids are in elementary school. It is also significant to let them know about inadvertent financial problems they face as a family. They need to be aware of what is going on in the family from a financial perspective. The kids might not be able to contribute, but their understanding of the situation will augment their knowledge.
The basic principles of saving money
As an adult, it is vital to ensure that the information presented before the kids regarding financial planning is broken down into small nuggets. Overwhelming the child with too much information is not a good idea. On the other hand, giving them substantial cash and asking them to spend wisely is not an appropriate method of teaching kids about money.
A few simple steps can go a long way in making kids aware of financial planning. These steps are enlisted below:
Open a bank account:
Parents should open bank accounts in their kids’ names. The child should know that all their savings shall remain safe in the bank account. As the child enters middle school, the concept of interest earned on money kept in a bank account can be introduced.
Give a debit card:
A kid having a debit card will get a clearer picture of monetary transactions. Debit cards for kids are pretty safe because they allow parents to see all transactions made by the child through an application.
Urge kids to earn their allowance:
Instead of handing over a specific sum as the weekly allowance, it is more sensible to ask them to look for a job and make their living. They can do that by doing household chores or other age-appropriate jobs available in the neighborhood. It will help them to get into the habit of working. They will understand that if they are jobless, they won’t be able to get any money.
Ask them to contribute:
Kids are often known to make demands for purchasing toys or games. When it comes to non-essential items, it is always fair to ask them to pay part of the price of the object they want to purchase. This will make them understand the cost of games or other non-essential products.
Teaching children the importance of money and how it should be utilized and saved isn’t a challenging process but introducing the concepts helps the kids learn about financial dealings from an early stage. Hence, during this summer break, allow the kids to enjoy and learn how to earn and use their allowance. Let them broaden their financial knowledge by learning about investment options. Give them the scope to try their knowledge at investing their earned money. As a parent, you have to be present at every step of the way on their journey towards succinct money management so that when they become adults, they don’t can avoid or overcome financial pitfalls.