There are lots of books, magazine articles and Web sites that can help you educate your kids. Most banks have programs meant to entice children to open a savings account. They often have brochures for young people that explain savings and compound interest; they also might offer information about checking accounts for teenagers. CBS money watch has a series of articles called “Money Skills for Your Kids” http://tinyurl.com/26h397z
If you want to give your kids an allowance, but don’t want to dole out cash, you can give them an electronic allowance. A free online system might work for you.
DigiBeanz allows parents to set up a list of chores or projects and assign a value to them. Kids can earn “DigiBeanz” and redeem them for items on Amazon.com. You can also reward kids for grades and for reading. http://www.digibeanz.com/
Zefty acts like a bank, allowing you to “direct deposit” to your child’s account but it doesn’t require any cash. Kids earn virtual money and when they want to cash in, they present a “ZeftyCheck” to Mom or Dad. http://zefty.com/
The PAYjr (from Bank Corp and Visa) has a large collection of articles and tips on using an online system. The Web site also offer a printable chore chart and online calendars to help you and your kids to track chores and their associated rewards. http://www.payjr.com/
At some point, your kids will probably get a debit or credit card
Even very young children notice that you can pay for things with debit or credit cards. By the time they get to be teenagers, they are accustomed to using their parents’ cards. New federal guidelines make it more difficult for teenagers to get credit cards, so they avoid getting themselves into debt that will take years to pay off.
At some point, though, they will probably get a debit or credit card and they need to learn that they don’t have an endless supply of money. You can teach them how to manage money with a prepaid card.
And if you like this info, share it using the links below!