If you were thinking about getting your kids a credit card but don’t know where to start, you came to the right place.
With the help of a credit card, the children get responsibilities and skills that will be useful when they grow up. Many people think that children are too young to understand money, but this is not true.
Children can master a foreign language through cartoons in a short period, don’t you think they can’t master what money is? So we advise you to get your kids the right credit card as soon as possible.
When to start introducing kids to credit cards
The earlier you start, the better it will be for you and the child. Many studies have shown that children have a concept of money, they roughly know how it works from the age of 6.
It has happened to all of us that grandparents, aunts, and relatives give us money when they see us, for our birthday or to buy something for ourselves.
Running home and carrying money to put in our piggy bank, we would collect coins and put them in. A card is another type of piggy bank, let’s say digital, which can be controlled by parents.
Psychologists believe that if a child learns to appreciate money from an early age, to use it wisely and prudently, he will have a much simpler life later.
This means that they must respect the rules, save and allocate their money properly, and find a balance between spending and saving.
A guide to opening kids card
Step 1. – The first step is to choose a bank, account, and debit card that suits your family’s needs and requirements. Debit cards are attractive because parents can monitor them and they are networked, which is ideal for families.
Step 2. – After you have chosen a bank, it is time to open an account. The parent provides their personal information, as well as the child’s personal information such as name and surname, date and place of birth.
Step 3. – When they finish creating an account, it’s time to link it to yours and transfer the desired amount of money.
Step 4. – In the settings, you can specify restrictions and organize lists of jobs and obligations that your child must fulfill on a weekly/monthly basis
Step 5. – Every credit card has options for saving money, shopping, investing, and donating. Children can only borrow money from their parents, provided that they return it within the specified time limit.
Step 6. – Parents can limit transactions to certain brands and companies that they feel are not appropriate for their age.
Learning through games
The best way to bring children closer to this new world is through play, it can be social games as well as shopping games. Children are extremely enterprising and know how to negotiate, they don’t give in until they get what they want.
Kids – little entrepreneurs
We also have examples of how children earn extra money by selling objects and things they have made themselves, walking the neighbors’ dogs, babysitting, mowing the grass, taking out the garbage, and many other jobs. In this way, the child gains a certain satisfaction, because it has earned extra money through hard work, which now that he has earned it, should be deposited on the card.
How to choose the right card for your child?
There are many offers and options from various service providers and banks, it’s up to you to decide which one to choose. There are those with an age limit of 6, 11, and 13 years, while some have no age limit. Also, what is specific to this type of card is that it has a set daily limit on how much money can be withdrawn and that all depends on the bank and the service. Also, the maximum daily limit that can be withdrawn at some banks is $1,500, while at others it varies from $100 to $1,000.
Currently, Busiykid, winner of many awards, Greenlight credit card, GoHenry, and FamZoo are leading the credit card market. Each has its monthly fees that you have to pay, in most cases, it’s 5 cards, and each subsequent one is $5. Of course, these prices also vary from the service provider.