Most parents hesitate to give debit cards to their kids. They often think that the kids are not mature enough to handle money on their own. The truth is, giving your child Spendsafe Debit Cards for Kids is a great way to teach them about financial responsibility. The card will not only make them more careful about balancing their earnings and expenditure, but it would also help them to understand that money does not come cheap and they have to save it to purchase better things later on.
But what if they go wild and overdraw their account? This is the question that is popping up on the minds of most parents reading this article. We have tried to offer the answers to this question and a lot of other unanswered questions in the following section of this article. Read the following section of this article to find out more about the debit cards.
Kids are Too Young to Learn Money Management
This is one of the major concerns of the parents when they think about handing over a debit card to their kids. While every child is different and can show the required maturity at different levels, the studies show that the financial habits of a person are formed in their early childhood. In fact, a British study said that the financial habit of a person is formed by 7 years.
That does not mean that every child has to show incredible financial maturity in that age, but it indicates that you can teach your child about spending money very early. Once your child starts to understand the concept of money and that it is used for buying different things, you should encourage good financial habits in them. Even if your kids are way past & years of age, you can start teaching them good financial habits right away.
Just by buying your kid a piggy bank for saving money or offering them a small amount of money for doing chores are some of the simple ways you can teach your kids about financial management. Once these habits are established, the Spendsafe Debit Cards for Kids can teach your child further about managing the money better.
How Debit Cards Can Teach The Child about Money Management?
Money is Finite
This is one of the most important lessons that every person should understand in their lives. While the kids can get everything they ask from their parents, they do not understand where that money is coming. The debit card can help them to understand that money is finite and they have to spend it wisely. Once the kids are in charge of making the money last for a specific time without getting replenished from the bank of the parents, they would understand its value and really think hard about the things that they want before buying them.
You Must Save for Things That You Want
The kids have to understand that they cannot buy the things that they want just by walking in a store and whipping out the Spendsafe Debit Cards for Kids. The debit card makes them understand that they have to wait for weeks or even years and save money before they can buy certain things for themselves. Also, the struggle of saving the money to buy certain things would make the kids value the object better once they buy it.
Tracking Income and Expenses
This is probably one of the biggest worries about the parents when they hand the debit card over to the kids. The truth is, financial maturity does not come if you never make any mistakes. So, if you are one of the parents who want their children to learn from the mistakes, then let your children overdraft the card. However, you should be stern enough not to pay off the overdraft. Let your children work harder to pay back the money every time he or she overdrafts the card.
Help them to create a paper ledger for themselves, where they can easily log the income and expenditure and check how much money they have left in their savings account.
However, if you want to avoid the overdraft fees, then know that there are great card options available in the market that you can avail. Also, choose such a card option which lets you keep watch on the spending of your children. In this way, you will be teaching your child about budgeting and making sure that they are not buying something that they should not.
Even if it seems way too early for your kid to have a debit card on their own, know that with proper guidance you can prepare them for handing Spendsafe Debit Cards for Kids. The earlier you start the financial guidance, the easier it would be for your kids to learn about handling money.