The Hidden Costs of Financial Education for Kids

Pocket money cards are prepaid cards, with corresponding apps, designed specifically for children and teenagers to learn about money management in a safe and controlled environment. Giving children pocket money or an allowance is nothing new but, as we slowly move into a cashless society, it doesn’t make sense to be handing over pennies and pounds.

Instead, many parents are swapping to prepaid cards, such as nimbl. These cards give children the experience and education of managing their money via a bank card, teaching them the basics of how banking works, before they move over to a bank account when they turn 18.

But, there is a hidden cost that comes with financially educating your children, especially if you choose one of the more costly pocket money cards. This is why it’s important to weigh up the pros and cons of each, and compare the hidden costs.

The Benefits of Pocket Money Cards

• Financial Education - These cards teach children valuable money skills from an early age, including budgeting, saving and responsible spending habits.

• Parental Control - Parents have full control over their child's spending, allowing them to set spending limits, automate allowances and monitor transactions in real-time through the accompanying app.

• Independence - Children gain a sense of financial independence by having their own money management tools, allowing them to make spending decisions within predefined limits set by their parents.

• Safety and Security - These cards provide a safer alternative to cash, reducing the risk of loss or theft. Parents can also easily block or suspend the card if it is lost or stolen.

• Financial Education - By using these cards, children learn the value of money, the importance of saving for future goals and how to make informed financial decisions as they grow older.
  

The Cost of Teaching Kids Money Management

Cards such as GoHenry, nimbl, Rooster and Osper offer a practical and hands-on approach to financial education for kids, empowering them to develop essential money management skills that will benefit them throughout their lives. But, not all prepaid cards for kids are the same, and some are more expensive than others.

GoHenry

Go Henry is a popular choice amongst parents, but it’s by no means the most affordable. Go Henry is on the more expensive side of things when it comes to the monthly fee, and it charges parents to load money onto the account, with a 50p fee per transaction.

nimbl

nimbl has been designed with affordability in mind, and it’s one of the less expensive options. It has one of the lower monthly fees, and it doesn’t charge parents to load money onto the account. There are also discounts if parents choose to pay annually, rather than monthly.

Rooster

Rooster is NatWest’s offering, and it’s a cost-effective option – but the catch is you have to be an existing NatWest customer. A lot of what Rooster has to offer is free for customers, but payable for everyone else.

Osper

Like GoHenry, Osper charges parents 50p per transaction to manually load money onto the card. It also gives parents the option to pay annually for the account, but there are no discounts available for doing so.

Which Prepaid Pocket Money Card is the Best Value for Money?

Though these prepaid cards for kids are similar, some charge more for the financial education that they bring. For example, Go Henry costs £3.99 a month, which is considerably more than nimbl, which only charges £2.49 per month for the first card and £1.99 thereafter. Similarly, Osper charges parents 50p to manually load money onto a child’s account, whereas it’s free with nimbl.

Some prepaid pocket money cards also charge parents to order the card. For example, Revolut and HyperJar charge £4.99 for delivery. With nimbl, this fee is waived. nimbl also becomes better value the more children you have, with additional cards on your account receiving a discounted price of £1.99 per month.

Our Winner? nimbl.com

Though all of the prepaid pocket money cards provide a variety of benefits, when it comes to the cost of financial education for kids, nimbl is the clear winner.