How to Use Debit Cards to Teach Kids How to Manage Holiday Spending
Talking to your kids about money management can be a tricky conversation. However, in an increasingly cashless society, it’s a conversation that needs to happen. With a whirlwind 2020 and holiday spending in full force, teaching kids about proper spending has become more critical than ever.
Fortunately, families now have access to endless financial tools to make budgeting and spending easier than ever. The BusyKid Visa® Spend Card is designed not only to teach your children the value of money but also to empower them to spend responsibly even at a young age.
Use a kids debit card to empower your child’s spending this holiday season by keeping in mind the following:
Encourage them to create a budgeting list
With a budgeting list, you can easily discuss and teach your kids about savings and spending limits. You can also talk to them about doing additional work so they can earn more.
As the holiday nears, encourage them to think of at least three additional chores they can do. Motivate them to set aside a certain portion of their earnings to go to their holiday gift funds.
You can also help them out by giving them bonuses if they do their tasks well. BusyKid knows the importance of rewarding an outstanding job, so you have the option to give bonuses if they go above and beyond what’s expected.
Let them decide how they’ll spend their money
While this can seem like counterproductive advice at first glance, it is essential to remember that kids learn by doing. That said, there’s no better way to teach them how to manage their money accordingly than by allowing them to use their debit cards.
Also, any practice they get can surely help them when they’ll become adults and use plastic cards for their transactions. It is also likely that they’d be using their cards during the holidays, so it would be great if you can guide them through their first few holiday purchases.
Going online shopping together also proves to be beneficial. Allow them to pay for holiday items they like using their debit cards. You can also help them identify and snag amazing holiday deals while you’re at it.
Help them find the best deals
What’s better than finding a sale? Finding sales with your kids! Undoubtedly, finding deals during the holidays is a walk in the park. The great thing about scoring great items with your kids is it will help lay a robust foundation for your kids about how they should manage their money.
Finding sales is also an excellent opportunity for you to teach them the value of looking for good bargains. While doing your shopping online, you can also teach them about the importance of online safety. Further, you can teach them about generosity by encouraging them to donate a percentage of their money to charities.
BusyKid knows the importance of teaching kids at an early age the value of generosity and helping others by adding a feature to donate to a growing list of charities of their choice.
This is also an excellent time to encourage them to give themselves a gift for their future, like an investment in stocks. BusyKid gives your child a fantastic opportunity to buy into significant companies at a fraction of their full price.
Guide them in creating a gift list
For many, giving is the true essence of the holiday season. If you want to instill this habit in your kids, you can guide them while drafting their gift list. From that gorgeous scarf for Grandma to other gifts for their siblings and friends, the exercise can help them become better at finding presents and budgeting their money. More importantly, it can help them appreciate the value of giving.
Over to You
It’s very easy for shoppers, especially your kids, to get caught up in the chaos of holiday spending. Fortunately, with your guidance and the help of financial tools like BusyKid’s Visa® Prepaid Spend Card, navigating online shopping is much easier. And you get to teach them valuable money management skills while you’re at it, so it’s a win-win!
Hear it from the parents of BusyKid’s across America!
I added this app for my 5 year old and I to use together to keep track of her allowance. For the last year I have been using a paper version of Chore Bucks which has worked well, except for the fact that it was hard for me to make sure I had the right amount of cash each payday for her and it was also difficult to put the money aside and not spend it being in cash form and I would have to fill the chart out each week which I would forget a lot! Super easy to use and transfer money and order card —Jessica Clement
This app has really been awesome. My son is learning the value/process of working and getting paid. It also has assisted us with teaching to save and invest. My 10 year old feels good about earning funds and having his own debit card. And to top it off, customer service is quick to respond and very helpful. I recommend this app for upper elementary and middle school age kids especially! —Tawana Harris-Glover
A Miracle Worker!! For a mom who is not a natural-born “manager”…this app has been a God-send!!! I have tried many “house chore” systems through the years to get my boys involved in helping around the house…fun chore charts, rewards, check-off-lists, etc…but they all fizzled out over a month or so. I struggled staying on top of it all…who did what…who didn’t do what…how much to pay…remembering to pay, etc. This app manages everything for me! Each of us have the app on our phones….my boys love checking off their chores each day…& watching the money add up;-). They also love the fact they now have their own Visa Card…and can see the rewards, for their hard work, load onto their card each week! Very user friendly app for us all;-) I finally have a team…knocking out home-life together!!! Thank you BusyKid!!! —Eliasfire9
*The BusyKid Visa® Prepaid Spend Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a licensee from Visa® USA Inc. All cardholder’s funds are insured by the FDIC in accordance with the FDIC’s applicable terms and conditions. For more information about the card’s terms and conditions including the Visa® Zero Liability policy, click here. One BusyKid Visa® Prepaid Spend Card is included with a paid family subscription, but additional cards cost $7.99/yr with a linked bank as a funding source. A small $.55 transaction fee will be added to orders using a credit card. There may be some additional fees associated with the Spend Card, please see our FAQ’s for more information.