Every parent wants the best for their children, but one of the most important things is to teach them responsibilities, skills, and financial literacy and prepare them for the future in the best possible way.
Experts advise that parents teach their children about money and how to manage it properly from a young age. Children learn quickly, especially through play, and are eager to help their parents and siblings.
Every child, no matter how old they are, must have certain obligations within the household that they must fulfill.
What credit cards for kids offer besides the ability to spend, save and financial literacy, they offer various tables of obligations that parents can adapt to each child and their age.
From an early age, children are taught various skills, performing various tasks within a given time limit.
What are these types of cards for children?
Parents create a joint account that is linked to theirs and provide basic information about the children such as name, surname, and place of current residence.
Children cannot go into the red with these cards, some options even offer parents to block transactions with companies they consider inappropriate for their children.
In addition to this type of card, there are also mobile applications that offer obligation tables, a savings plan, the possibility of investing in shares, the possibility of donating money, as well as payment by a third party, as is the case with BusyKid.
5 reasons it is good for your child to have a card
Learning financial literacy and responsibility
Giving your child this type of card allows you to teach them financial literacy and responsibilities within the household, school, and the entire community.
By completing the tasks given by their parents, children have the opportunity to earn extra money in addition to their pocket money, which they can dispose of as they wish.
Cards offer the possibility of spending, shopping, developing a savings plan, donating money, and investing money.
You can suggest to them that if they want to buy something, they have to save money and that they have to contribute part of the family budget.
In this way, children learn that they have to be hardworking to be able to afford what they want, and that they know that money does not fall from a tree, but that it is earned through hard work.
By giving them their card, children are taught a special kind of responsibility. They know that their parents trust them and they have to justify that trust in the best possible way.
Children have responsibilities and duties that they must perform on a daily, weekly, and monthly level. The children are given various tables of activities and obligations that they must fulfill within the given time following their age.
If they do not complete the assigned tasks, the parents punish them with negative points or a reduction in the budget for the following month. Children must know that there are consequences if they do not fulfill their duties on time.
Building a credit rating
With this type of card, children are taught how to save and build a credit rating, which will make it easier for them and prepare them best for the future.
Children can build their credit rating gradually from a young age, and in time they will understand how credit and credit cards work.
The children will be ahead of most of their peers and will know how the world of money and creating credit works. And this will enable them to have a more carefree and secure future.
Put the children on the payroll
In addition to giving your children pocket money with this type of card, you can also put them on the payroll.
If the children perform certain tasks, such as mowing the grass, helping neighbors, taking care of pets, or looking after their brothers and sisters.
You can pay your children to complete additional tasks through the mobile application. In this way, the children will feel more useful and better because they earn their own money, which they can dispose of as they wish.
Supervision and control of money disposal
One of the most important things is that parents with this type of card have full supervision and control over the spending and transactions that the child performs.
Parents have insight into how, how much, where, and what their children spend money on. It also enables online shopping and card payment, especially for emergencies.
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