As your kids grow up, it's likely that they'll start showing sings they're ready for a prepaid debit card as start getting more involved in household chores to earn pocket money. They might even pick up a small summer job like mowing your neighbours' lawns or walking their dogs. As they earn money, they will find themselves in a position to spend more. Tracking your child's spending is a great way of making sure they're handling their money responsibly and not spending too much on the wrong things. But what is the best way to track your kid's spending? Are the solution pocket money apps? Read on to find out.
Using apps like GoHenry to track your child’s spending
GoHenry is an effective tool to track your child’s spending while ensuring that they are meeting their budgeting and savings goals. As many of us know, learning good financial habits can sometimes be tricky. We might be tempted to eat out, buy our favourite expensive coffee, or purchase the latest technology devices on a whim. It can take years to learn how to manage these impulses and think about the big picture before committing to a purchase.
Financial parental controls are great because they help you to give your child the financial freedom they want while you keep a watchful eye on their choices. GoHenry can summarise where and how your child is spending their money. For example, maybe last week they spent 10% of their budget on ice cream, 40% on clothes, and 50% on fast food. These summaries create a visualisation that you and your child can sit down and talk about if necessary.
Teach your child how to manage their own money
One of the best ways for your child to learn how to manage their money is for you to teach them the necessary skills and support them as they get more adept with budgeting, spending and saving. The earlier they learn, the better. Children don’t risk going into debt because they are too young to access a credit card. They will also be more open to your feedback if you actively encourage them to manage their own money with the skills that you teach them. Simple habits like budgeting and savings goals, keeping track of spending habits, and understanding the difference between needs and wants are invaluable lifelong skills that will set them up on the right track for financial independence.
Sit down and set their budget and savings goals with them so that they feel listened to. For example, if they want to spend their entire weekly budget on video games, explain that they won't have money left for anything else.
GoHenry’s Money Missions can help teach your child about managing their money, with Missions covering money basics, investing, saving, compound interest, borrowing, giving, and more.
Encourage them to make their budget
Learning how to make a financial budget is one of the best things you can teach your child about financial independence. Once you establish this habit from an early age, it will become a lifelong source of comfort that they are living within their means into adulthood. As a teen, you can teach them about budgeting for clothes, food, travel, savings, and pocket money. It is important that you sit down and develop a budget together, so they are actively involved in the decision making and that the budget is realistic.
After the end of the budgeting period — weekly or monthly, depending on your preferences — sit down with your child and review how they did. This is made much simpler with GoHenry. Help them understand that keeping to a budget is hard and everyone struggles with it sometimes, but practice will make perfect.
Give them a prepaid debit card with GoHenry
Consider signing your child up for a prepaid debit card with GoHenry, designed specifically for children aged 6-18. Kids can earn money through completing tasks, you can set up regular pocket money payments, and they can set saving goals to work towards. With GoHenry’s prepaid debit card for kids, and the accompanying app, you can track your child’s spending and limit how much they can spend at one time.