These days, cashless payments are becoming increasingly popular. As a parent wanting to teach your kids about finances and money management, teaching them about cashless payments is a must in this day and age. A reloadable debit card is the perfect way to introduce your kids to cashless payments!
What exactly is a reloadable debit card and how does it work?
Basically, it looks like a credit card and works like a debit card, minus the risk of overspending.
Unlike a regular debit card, which is linked or pulls funds from your bank account, you would need to add funds to your kids reloadable debit card in order for them to use it, much like topping up a prepaid mobile number.
For a parent, the top-up feature is the most attractive feature of a reloadable debit card. Unlike a credit card or even a regular debit card, you can sleep easy at night knowing that you won’t be surprised by an astounding credit card bill or shocked by a drained bank account due to your kids’ shopping spree.
Give Your Kid A Financial Head Start
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Why Should I Get My Kid A Reloadable Debit Card?
Exposing your kid to the basics of everyday banking is an important step in their learning process towards being financially independent and savvy. A reloadable debit card is a great way to start them off on their journey. They’ll learn that money isn’t infinite and that plastic can hold real money.
Still not entirely sure if a reloadable debit card is suitable for your kid? Read on and we’ll tell you more.
It is way safer for your kid to be carrying a reloadable debit card compared to cash.
For one thing, it’s easier and more convenient to carry.
Meanwhile, if it gets stolen or lost, you’re more likely to get your money back with a card than if it were cash.
Just report lost or stolen to secure what’s left on the card.
Unlike cash, a reloadable debit card can be used online and pretty much anywhere else so long as it’s a Mastercard or Visa. This will allow your kids to learn about online banking and how to manage their expenses using a card, which is primarily how they will be doing it as an adult.
Having to run to the ATM is an inconvenience in itself. With a reloadable debit card, you can simply go online to reload funds for your kids at any time! A cashless society also means that your kids won’t have to make the trips to the ATM as well.
3. Monitoring & Control
Cash is harder to track. With a reloadable debit card, both parents and kids will have more control over their spending. Having set spending limits for your kid, ie the amount you reload into the debit card, you’ll also be able to monitor what your kids are spending on, how much and where, with transaction notifications.
It’s a great way to teach kids how to spend money responsibly and budget efficiently, while still giving them the freedom to make their own buying decisions. It also makes it easier for them to buy you that birthday present!
When Is The Right Time?
As the parent, only you can make the decision as to when your kid is ready for a reloadable debit card. As a simple guide, your kid should at least understand the concept of cash, purchasing and that money doesn’t grow on trees.
Giving kids some control over their own money will give them the idea of having and building their savings!
Once you think your kid is ready for a reloadable debit card, start by transferring a portion of their pocket money to their reloadable debit card and then giving them the remaining balance in cash.
Put your kid in charge of their purchases. Show them a record of their transactions and how to check their balances to see if they have enough money to make a purchase.
You may plan to teach your kid different money or savings skills at different ages. That will break down the learning process into stages for easier understanding. Check out 5 tips on how to teach your kids good money habits here!
The objective is for them to learn how to handle their money responsibly and be ready with a solid foundation or understanding of money when they reach adulthood.
Disclaimer: This content is for informational purposes and