The days of nappy changing and feeding milk along with ensuring you got that bit of wind up are a distant memory. You blink and your kids are already teenagers and the issue of money management arises. Handling your teenage children’s finances is never an easy task for any parent. It’s impossible when you hand cash to your children to work out exactly where the money is being spent and on what… Products whether they are good or bad are a lot easier to access these days and some can be dangerous, especially when purchased on a whim!
Unfortunately (and annoyingly) most schools do not provide our children with financial education – something I know the government are addressing through their goal of building financial capability. The current lack of education may cause excessive spending and lack of financial responsibility as they grow into young adults and leave the home for college or university. It is essential for parents to educate their children to ensure that they do not face debt in the future.
A prepaid current account is a convenient way to keep your eye on what your child is spending and also helps them learn how to stick to a budget.
From a security point of view, current accounts that offer prepaid cards and additional cardholders are far more secure than handing out cash and combined with their own PIN number, makes it easy for children to be safe at the same time as teaching money management. Cards (if required) can be stopped immediately if lost or stolen – or confiscated if misused!
Having pocket money loaded on to a prepaid card will make it easy for them to control their money and might even entice them to keep money on the card and save for something they really want. You and your child can sit together and log in and see exactly what is going on!
This form of alternative banking will also teach your child responsibility, learn how to view transactions and work out if they are spending their money the best way. They are basically banking under your supervision and gaining knowledge of how to budget effectively…