When should my child get a credit card?
A taboo topic for most parents is whether to insure and give their children a credit card.
Perhaps most of you will be surprised, but experts advise that children should learn financial literacy, savings, and proper and rational use of money as early as possible.
In this way, children are taught monetary basics from an early age. Most parents who were not taught about finances by their parents had to learn everything by themselves, which made their future quite difficult.
Therefore, if you want your child to have a safe, carefree, and debt-free future, one of the main tools to achieve this is through a credit card for children and their accompanying applications. You may even think about learning about investing for kids.
Difference between piggy banks and credit cards
Before, there were piggy banks in which you would save money, and we would not fool ourselves if we needed that money, we would throw the money out.
However, you can only use that money to buy those things that you have been saving for.
Parents had no control over the children’s savings, how and what they spend that money on, and how much is inside the piggy bank.
Credit cards as a tool for learning about finances
Besides the fact that this type of card is ideal for teaching and introducing children to the world of money, they also teach them responsibilities such as completing chores and obligations within the household.
To secure a card for your children, you will have to open an account on their behalf and provide personal information such as name, surname, date, and place of birth as well as the place of residence.
After that, parents deposit money into the children’s account and automatically activate the account.
There are various options on the market and you will have to be careful because some of them do not ensure the privacy and safety of your children online.
We will single out the ones that are currently the most popular in the world.
When should you provide your children with this type of card?
You should provide children with this financial learning tool as early as possible.
You have to teach them about money from a young age so that they understand that it is earned by hard work and that it does not fall from the sky or grow on magical trees.
Many studies have shown that children from the age of 4 already understand the concept of money and have come into contact with it and have their little piggy banks where they save money.
Children can personalize their tables of various chores that their parents give them, and they can check off each one when they have completed it.
And if they complete all the chores on time, they will get extra money for their pocket money.
Best choices for kid’s credit cards today
1. BusyKid
BusyKid pushes the boundaries as an option that offers financial literacy as well as allows children to complete chore charts through the app.
Children have the freedom to compile tables according to their curricular, extracurricular, and household duties.
All tasks must be completed within the given deadline and then they receive positive or negative points.
What is unique about this option is that they have the novelty of BusyPay, that is, the possibility of payment of funds by a third party. This will even give your child the option to learn about stock investing for kids.
The only payment method is that they have the corresponding QR code.
This is phenomenal if the children have part-time jobs and enable them to pay directly into the account.
The offer includes 5 cards, the monthly fee is $3.99 and the annual fee that saves 20% of your money is $38.99.
2. FamZoo
FamZoo is also an allowance and chore option for children under 18 years old. The children and parents have access to the same account.
This option also helps children with money budgeting, and allows them, like the previous one, to allocate their capital to spending, saving, investing, and donating.
The monthly fee you have to pay is $5.99.
3. GoHenry
GoHenry is a credit card that is pocket money and a chore app. The minimum age is 6 years and the maximum age is 18 years.
With this option, parents can prohibit transactions with firms and companies that they consider inappropriate for their children.
Together with their parents, children can draw up a savings plan and a goal that they must meet within a previously agreed-upon deadline.
The price you have to pay for these services is $3.99 per child, which may be too expensive for families with multiple children.
