We all know very well that knowing how to manage and dispose of money is a very important skill.
Therefore, parents must be the ones to teach children basic things about finances and money so that they will be self-reliant and independent in the future.
Taking into account all of the things you need to know in terms of the top choice kids credit cards for parents to choose from, we are here to cover all of the basics.
1. Describe to the children the difference between wishes and possibilities
It is very important to instill the right values and qualities in children, so you have to be strict sometimes in order for them to understand you.
You have to explain to the children that there is a big difference between wants and needs, and that every trip to the store is not for buying toys and sweets, but for essential things for family life.
You also have to teach them that money is not happiness, that it is necessary but not the most important thing, and that not everyone is lucky enough to have everything they want.
Children must also be socially sensitive, understand that money must be donated to the needy, and volunteer to help those who are not as fortunate as they are.
Going to the store
When you go to the store, make a shopping list together. Agree to buy only what is on the shopping list.
Have the children hold the paper and cross off the things you bought on it.
After returning from shopping, give some of the change to the children to put in their piggy bank, or write the rest on their debit card electronically. Explain to the children why it is good to save and manage money sensibly. Sometimes we can treat ourselves and buy ourselves what we want.
2. Owning a credit card as a learning method
A credit card is a very good option for your child to understand what money is and how to use it wisely. As there are many options on the market, it is up to you to choose the one that best suits the needs and capabilities of your family.
3. What is a kids credit card?
In order to open an account and make a credit card for the child, you must do it on their behalf, providing your and the child’s personal information. When you make a card, you have to load it. That is, you have to transfer funds to it to activate it.
Mobile applications have provided lists for household chores, extracurricular activities, curricular activities, charity work, savings plans, spending amounts, donating part of the money, and many other benefits.
4. Giving them tasks and chores, bonuses and punishment points through the app
In order to teach children how to allocate money correctly, you must give them tasks and responsibilities that parents decide at their own discretion.
Bonuses and rewards are introduced on a weekly or monthly basis, depending on your wishes, in order to stimulate them to further save and properly dispose of money.
If they complete the assigned tasks and duties, you can reward them by donating money through the mobile app .
You have to be selective and strict with children if they slack off, and punish them with certain points, either by reducing the budget or simply by taking on some additional household work.
5. Best credit cards for kids
We will briefly highlight the best choices for children’s cards, and it is up to you to decide which option best suits your family.
BusyKid is one of the best on the market, offering 5 cards for a fee of $4 per month and $39 per year. It is ideal for families with children and for teaching children about the financial world.
Busykid contains an application that offers options for earning, saving, donating, and spending. The possibility of investing in shares within the application is innovative, which attracted parents even more.
FamZoo is also one of the better options, offering a joint account for parents and children. It helps to create healthy habits in children.
It also contains an application that offers lists of tasks and obligations. You can try this type of card for free, but if you choose this option, you will pay $6 every month.
GoHenry is a financial app that comes with a debit card and is designed with the intention of educating young children.
Children aged 6–18 can have this type of card, where in the application they have various obligations, tasks, activities, and goals that they must fulfill within a given time. This type of service costs $4 per child.