Learning about money is an important part of life. Your child might already show signs they're ready to switch from a piggy bank to an online account. Perhaps they’ve asked you what age they need to be before they can have their own card. Most UK banks won't allow children under the age of 11 to open their own account, but many kids are ready to participate in the digital economy before this.
Here, we can help you pick up on the signs that tell you it’s time to swap coins for a card.
1. They are showing interest in money, debit cards, and credit cards
If your child is starting to talk to you about money, they are beginning to understand it serves an important purpose in life.
As their interest in money grows, so should their understanding of how to spend it wisely. The earlier they learn to become financially savvy, the sooner they will develop healthy spending habits.
A prepaid debit card gives young people the opportunity to figure out their relationship with money. An account with GoHenry comes with age-appropriate ways of teaching children about money basics, investing, saving, and giving – helping kids learn about finances in easy steps and in an educational and fun format.
2. They are looking to take control of their own finances
Most children reach an age where they are interested in money and how to manage it. They may start asking questions about saving or whether they can open their own account. Once children start asking for more control over their finances, they are probably ready to take more responsibility.
One of the ways youngsters demonstrate they are prepared for that extra bit of financial freedom is by becoming more responsible for their possessions. At that point, they are probably ready to manage a prepaid debit card. If they do misplace it, a GoHenry prepaid debit card can be blocked or unblocked instantly through the parent app.
3. They are ready for pocket money
One of the benefits of pocket money is teaching children about financial independence. Understanding that what we spend today leaves less for tomorrow is a lesson we've all had to learn at some point.
Children learn about money in school, in Key Stage 1, so they can recognise coins and understand the value of money from around the age of five. Once you're sure that they are ready to look after small sums, pocket money can be a useful way of allowing children to learn about spending and saving.
4. You want to provide meaningful rewards for completing chores
Pocket money is a way many parents choose to reward their children for completing tasks around the home.
Using a prepaid card as part of this process can help kids to understand that money is earned, not just given. With an account from GoHenry, you can set up a list of tasks for your child. As they complete the tasks they will receive their pocket money.
5. You still want to have control over their spending decisions
Giving your child a prepaid debit card allows them to make decisions about what they spend their money on, but it also gives you the chance to maintain some control. With a children's debit card, you can determine where they can use their card and if any places are off-limits. You can also, for example, limit online purchases, or prevent children from accessing them altogether.
6. You want to solve the gift dilemma
Once children reach a certain age, they tend to have very specific ideas about what they like and what is meaningful to them. When it comes to gifts from friends and family, it could be easier to send funds to a children's prepaid debit card. This way, your child gets to choose the perfect present for themselves, and friends or relations can see them enjoying a gift that is exactly what they want.
Giftlinks is a GoHenry feature designed to save your friends and family some time by sending money straight to your child’s GoHenry card – for birthdays and celebrations or an everyday treat.
7. Asking a parent for cash regularly
When it seems like your child is asking for cash regularly, it could mean it is the right time to start teaching them about the value of earning, spending, and saving.
A children's prepaid debit card, where pocket money can be transferred into their account, will give children the opportunity to make important decisions about how they spend their money. A GoHenry prepaid card, used alongside the app, gives kids the chance to see their savings grow over time.
Deciding to set up a prepaid debit card might seem like a big step. However, the benefits include helping children to acquire healthy money habits early in life, which can only be a benefit later. At the same time, you are giving them a sense of financial independence and freedom, while always being able to take control should you need to.