“Mom, I want this!” “Dad, will you get me that?” “All my friends have one of those!”
Dealing with kids’ unending requests and pleas can exhaust any parent. When they’re spending Mom and Dad’s money – the supply seems infinite.
As soon as possible, you want kids to start appreciating that money is a finite resource. Parents can teach that lesson to kids by putting money in their little hands. When kids possess their own money and are faced with having to use it at the checkout stand, everything changes. “As soon as you turn ownership over to the kid, that’s a whole different ball game.
Using prepaid Cards to Teach Good Money Habits
There are many ways that parents can use prepaid debit cards to teach good money habits. First, make sure they get a card with free online and mobile access to its balance and spending transactions. Then, put them in charge of their purchases. If they ask for something in the checkout line, have them check their balances and see if they have sufficient funds. If not, they’ll just have to save a little longer.
Parents can also link their kids’ prepaid debit cards to their online music and gaming accounts so that those purchases are deducted from their own money. No more running up Mom and Dad’s credit cards online!
Parents could also choose to reward their kids for patient saving by granting them “interest payments” every month or so. The more money the kids’ save and keep in their accounts, the more they get from Mom and Dad. This way they learn the value of saving over time.
More and more research is showing that people’s financial habits begin as young children. The bottom line is that parents simply cannot ignore the task of training their children to handle money responsibly.