What is a payment card and app?
Adults have a wide variety of paying for goods and services from good old cash to credit cards, debit cards and Near Field Connectivity (NFC) apps on a watch or phone.
For young people however, the field is more limited. They aren’t legally allowed credit ( so no credit cards) and debit cards are usually on a current account that could allow an overdraft which makes them only available for the over 18s.
But at the same time, many places only take digital payment so how can kids spend their pocket money?
Enter the payment card which is an account with a debit card that is preloaded with a set amount of cash.
Typically this will be twinned with an app that allows the user to manage their account, see their balance and carry out basic banking functions.
In practice, the parent adds pocket money to the account and this is then available for the child to spend using either their debit card or the app on their phone.
So what are the benefits of this method of managing pocket money and is it worth it?
One of the biggest benefits of using a pocket money card and app is convenience.
With a card and app, parents can easily transfer money to their child’s account wherever they are, and children can use the card to make purchases both online and in shops.
This eliminates the need for parents to constantly carry around cash and makes it easy for children to make purchases without having to worry about carrying physical money.
#2 Safety and Security
Another advantage of using a pocket money card and app is safety and security.
When using cash, there is always the risk of it being lost or stolen. With a pocket money card, the funds are held in a secure account, and the card can be blocked if it is lost or stolen.
This provides peace of mind for parents, knowing that their child’s money is safe and secure.
#3 Tracking Spending
Using a pocket money card and app also allows for easy tracking of spending.
Parents can see exactly where their child is spending their money, and how much they are spending.
This can be a valuable tool for teaching children about budgeting and financial responsibility, as they can see how quickly their money can be spent and the consequences of overspending.
#4 Setting Limits
Many pocket money card and app providers offer the ability to set limits on spending.
This can be helpful for parents who want to control how much their child is spending each week or month.
For example, parents can set a weekly spending limit of £20, and once the limit is reached, the child will no longer be able to make purchases until the next week. This can help teach children about budgeting and the importance of living within their means.
#5 Learning Financial Responsibility
Perhaps the biggest benefit of using a pocket money card and app is the opportunity for children to learn financial responsibility.
By giving children control over their own money, and providing them with the tools to manage it effectively, parents can help their children develop important financial skills that will serve them well throughout their lives.
Using an app twinned with a debit card also educates the child with regards to digital payment process which, as the world moves more and more towards cashless payments is a helpful move.
From budgeting and saving to making smart purchasing decisions, these skills will help children become financially responsible adults.
#6 Teaching Good Habits
Using a pocket money card and app can also be a way to teach children good financial habits.
For example, parents can encourage their children to save a portion of their pocket money each week and set goals for what they want to save for.
This can help children develop good savings habits, which will be valuable as they grow older and start to save for larger purchases.
#7 Fun and Interactive
Many pocket money card and app providers offer fun and interactive features that can help make managing money more engaging for children.
As an example, some apps offer rewards for meeting savings goals or completing financial education modules. This can make learning about money more enjoyable for children, and help keep them engaged and motivated.
Digital is the way forward
Since COVID-19 the world has moved much further towards a cashless society.
Many businesses no longer accept cash payments and having a debit card is the very least that people need.
It makes sense for children to learn about digital payment methods from an early age and providing them with a debit card twinned with an app is a great way to do this.
There are many benefits to using a pocket money card and app for managing your child’s pocket money. From convenience and safety to the opportunity to teach financial responsibility and good habits, a pocket money card and app can be a valuable tool for parents and children alike.
If you’re considering using a pocket money card and app for your family, be sure to research different providers and choose one that meets your needs and budget. By doing so, you can help set your child on