|Britt Erica Tunick is an award winning financial journalist who has spent the past 17 years writing about virtually every aspect of finance. She has mastered the art of boiling down complicated financial topics for readers to understand.|
Why You Should Consider Making Your Child’s Allowance Electronic
By Britt Erica Tunick
One of the best ways to teach young children about the value of money and how to manage it is to give them a small allowance in exchange for chores they must complete each week something you likely had as a child. But while allowances aren’t a new concept, there are now new options for paying them, such as mobile apps designed to teach children how to manage money.
Several companies have launched budgeting apps for children that can be used to pay allowances electronically and are designed to teach children the basics of managing money online. As the number of people that embrace electronic payments continues to soar, teaching children how to manage money electronically is a wise move, since digital payments will most likely be the primary form of payment by the time these children are old enough to earn money of their own.
From PiggyBot and FamZoo, to Gimi and GoHenry, there is no shortage of budgeting apps aimed at children. As with most apps, each has different features, takes different approaches, and is aimed at different ages. The monthly fees charged can also vary, so that is something else you will want to look at before committing to a particular app. For the most part, however, there are major similarities between these apps, such as the ability to electronically make payments directly into a child’s account, as well as the ability for parents to set controls and limits on what can be done with their child’s account. In some cases, children can even be given personal debit cards tied to their accounts.
Studies have found that the earlier children learn about the value of money and the importance of developing good spending habits, the better they will be at budgeting when they get older. While giving children the freedom to make electronic payments may lead to some poor decisions or even some mistakes, the fact that parents are able to monitor their children’s spending and set limits ensures that any such mistakes will not be too significant. It is definitely better for kids to make mistakes they can learn from when they are young, so they can grow up to become responsible young adults.
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