NEW YORK (CBSNewYork) – How soon is it too early to give kids their own debit card?
Maybe sooner than you think with cards that parents can use to monitor every transaction and more.
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“The earlier children learn about finance, the fewer mistakes they make when they reach adulthood,” mother Zanaya Diakite told CBS2’s Cindy Hsu.
At least that’s the hope. So Diakite got a debit card for her 9-year-old daughter Tamia – one that was specially designed for children.
“I had to take out the trash, read my books and … wash the dishes,” said Tamia.
Your pocket money and chores money will be written directly onto your bespoke Greenlight card.
“We really wanted it to be about learning finance and really understanding the basics,” said Tim Sheehan, Greenlight co-founder and CEO.
He says children’s debit cards are very different from traditional ones.
“You won’t be chasing chores and tying up allowances,” Sheehan said. “Parents can choose which businesses and how much to spend in each one.”
There are several cards on the market with similar properties to help you save, get chores or good grades, invest, and even donate to charities. They are designed for children aged 6 to 18 years.
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“All of the features are designed to help kids learn the budget and understand the differences between wants and needs,” said Dean Brauer, Co-Founder and US President of GoHenry.
Empower children to make responsible decisions about money.
“The whole idea is that wasting $ 10 is better when you are 10 than $ 10,000 when you are 20 and get your first credit card,” Brauer said.
Andrea Ferguson Peterson says her 10-year-old daughter London had an interest in arts and fencing and needed a way to keep the costs associated with her interests under control.
“When we had money in the bank for London, it was like this account that is somewhere far away that she has no access to,” said Ferguson Peterson.
With a GoHenry card, she says London is making an informed decision about how to afford what she wants.
“I usually tell my friends that I’m saving for this or that I would go here and buy this because I was saving for it,” said London.
Financial expert Paul Oster says early education is essential to understanding money matters later in life.
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“Get them involved in your own financial planning as soon as possible,” he said.