Parents play a very important role in teaching kids to manage and take control of their finances. Financial independence is an important source of confidence that every child ought to have. A lot of children are dependent solely on their parents for all kinds of spending. This may even effect their ability to make spending decisions and money management in future. Some parents believe in giving money to their kids on ad-hoc basis whereas others give them stipulated money to be spend for the month. Studies show that only half of the kids who receive money on ad-hoc basis keep a track of their expenditure. However, the kids who receive a stipulated amount in the beginning of the month are more inclined towards better financial planning and have a control over their monthly expenses.
Although ad-hoc cash may give you a control over the child’s spends but would that practice help you mould him/her into a good financial planner, saver and a wise spender? Then, is giving the kids a lump sum amount a good idea to track their spends? Would a larger amount lead them to turbulent roads in comparison to the ad-hoc smaller amount? There are so many concerning questions that cross our heads while trying to do the best for our kids. Being a parent is tough and taking an informed and balanced decision for your kid is also a great responsibility. The child should feel independent and have the freedom to plan his/her expenses but at the same time should not spend on wrong means.
A prepaid Card that does not need a bank account but is connected to you through an app or a console could be a good solution to solve this problem. Your child would be conscious of the fact that their spending is being supervised but they are not in dearth of money. A prepaid card with multiple wallets, facility to be used online & offline and with the ability to withdraw money at ATMs would be the best way to put an end to all the parental concerns.
Be it canteen expenses, birthday presents for friends, nick-nacks on the way back from tuitions, lending money to friends or even birthday treat to friends, this card would allow them to plan their monthly expenses and also save for the next month. This facility would not only make them financially independent but also responsible and future ready when it comes to planning finances. You as a parent, at the same time would be able to monitor their activity without making it obvious to them. With the changing times, giving independence to your kids is as important as protecting and preparing them for the tough world outside.
OBOPAY would love to share your responsibility and make a small contribution in raising your kids to become more responsible citizens. Visit https://www.obopay.com/obopay-card/ to know more about OBOPAY cards.