Debit Card for Teens & Tweens – 5 Tips to Teach Them How To Budget
Teach Tweens & Teens to Budget Money Today for a Stress-Free Tomorrow!
Why should you ge ta debit card for teens? We’re sharing 5 tips on how to teach your tween or teen to budget. Remember when you were a kid and you thought if you could ever make $100 in a week you would be filthy rich? You would have hit the jackpot, that infamous “money tree” would have landed on your front lawn!
I remember feeling like I would be raking in the dough if I ever made that kind of money… times have certainly changed! With the changing of times, I’ve had to adjust my thinking on how I’m teaching my kids to budget the money they have now. If they can’t budget $20 now, they will not be able to budget $2000 later. We’ve been learning and hearing about debit cards for teens and tweens and we’ve tried it out along with some othere great tips so we sharing those that we’ve learned along the way.
Curb Impulse Buying From a Young Age
This really is one of the most important steps that so many of us let slide. We think that the $0.88 toy in the checkout line won’t make a difference, but it does. Our kids are ALWAYS watching us and whether they want to admit it or not, they’re learning from us too. Without even realizing it, we’re telling them, “It’s ok to buy this matchbox car even though you have 500,000 of them at home. If you want it, get it!”. Junior may not be happy that he can’t get what he wants (when he wants) but teaching him/her to think thru every purchase (as young as possible) is critical in raising budget savvy adults. This first step in teaching our kids to budget money needs to start as early as we can!
Create a Save, Give, Spend System
I have my mom to thank for this one. She instilled this one in us at a young age as well. If we received $20 as a gift, we knew; 1/3 was for saving, 1/3 was for giving to someone less fortunate, and 1/3 was ours to do with as we pleased. It really keeps things in perspective when you take something you were given and share it with someone else in need. One of my friends has a pretty unique way of helping her tween son budget money. Since he was a toddler, any cash he receives as gifts is his to spend freely. However, if he receives that gift as a check – in the bank it goes. Guess how mom, dad, and grandparents give their gifts… pretty clever twist on teaching the art of saving.
Ask 3 Questions Before Each Purchase
- Where will I put this item in my home?
- Do I need this item, or do I already own something that can meet the need as well as this item?
- Will I be glad I spent my money on this item in two weeks?
These are great questions to assist in the impulse buying department. If you don’t have a “home” for the item once it gets home, you don’t need it, or if you’re unsure of your feelings on the item in the future… WAIT! Wait doesn’t necessarily mean no. It just means I’m going to think this purchase thru. I tell my kids if the item gets gone in the meantime, it just wasn’t meant to be!
Let Them Fail
Can I be transparent for a moment? This one is TOUGH to carry out, but so very necessary! Sometimes our tweens/teens just know more than mom and dad. They need that $250 pair of shoes or the world will literally come crashing down on them. It’s hard, but let them buy them. Advise them against poor decisions, remind them of the impulse buying, ask them the questions; but if they are still persistent – let them buy it. I’ve found that often they don’t even make it to the sales table before realizing they value the money more than the “shoes”. But there have been times that they marched to the counter, pulled out their payment, and were sorry before we ever got home. Let them know what it feels like to have spent money foolishly. Failure is a great motivator!
Give Them Access to a Debit Card
Yes a debit card for teens. I know you may be shaking your head at this one, but hear me out. Mama, please do not wait until your princess or man-child is leaving for college to give them access to a bank account. Give them access now. Walk them thru getting it set up, setting up a budget and balancing a checkbook. Having a debit card for teens and teaching them to respect it, will save them (and you) much heartache later in life! Unfortunately, knowing how to budget money doesn’t come natural to all of us.
Teens approach money, transactions, and value differently than our generation, and it’s time to update the outdated structures of traditional banking to better prepare them for the future. If you’re not sure where to start or when it comes to a debit card for teens Current can help. Current, a financial tech company that enables teens to more effectively manage their money with full visibility for their parents. Current allows teenagers to shop in stores or online using funds from their own bank account, which is funded through allowance money that mom or dad transfers from their own bank account (no new bank account needed). In addition to the card, Current has an app for both the teens and the parents with multiple functions. One of the unique features allows parents to set up chores that have to be completed and reviewed before the allowance is paid out. Is a debit card for teens sounded a little better to you now?
Some of the features for this debit card for teens from Current include:
- Tracking spending, saving, and giving
- Ability to pause the card at anytime
- Setting up and managing chores
- Automating savings by rounding up the change
- Ability to donate to their favorite cause
- Requesting money for one-off expenses
- Automating allowances
- Limiting spending and blocking categories
Don’t forget to check out Current HERE.
Do you have any unique twists on teaching your kids how to budget money? I’d love to hear them!
Make sure to check out our FYI section for tips on anything family related.