I pretty much only use cash for buying things on FB marketplace, so the idea of giving my kids cash to teach them about responsible spending and value etc seems antiquated. But giving them a debit card seems too abstract. What are you all doing?
We have tried several reward systems, including rejigging the rewards and earning rules numerous times. But both us and the kids would frequently forget to award them. Then the kids would remember after 2 or 3 months and it works become a headache to try to assess.
So we’ve switched to debit cards with automatic allowance transfers. There’s also an option with the system we use to reward extra money for weekly chores, ask fine guys the mobile app. It’s very convenient. Not least because the kids usually forget to do their chores, so they rarely earn the extra $s.
Additionally, the kids usually forget about their accounts/cards (despite frequently complaining when we say no to requests for treats or extra things). So their modest weekly allowance are gradually building up to a decent little nestegg.
But yeah, I hear ya about the concern about kids having debit cards too young. There has to be a certain level of financial awareness to really cope with them. Though the counterpoint to that is: such a mechanism helps get them to that better awareness.
We do Greenlight for this, which has a management app and a debit card. It’s not perfect, but it’s working well for our preteen son and is pretty flexible. We can add money when he completes chores and can partition what he can spend where. It works and he’s definitely gaining more of an understanding of how to manage his money.
Edit - Greenlight also gives you a qr code and payment link that (e.g.) his grandmother can use to pay him for mowing her yard, etc. No cash involved.
This is so steep at $6/mo
I give them money for doing things and in return, they get things. I advise them on spending but don’t force it. This way they are free to use their money but also learn effectively over time. If you force their decision, or override their decision, you effectively eliminate the learning.
But you’re giving them cash?
We’ve had a box that comes in three segments. Each has a label: Save, Give, and Spend. Easy to find online.
The weekly cash allowance, as well as family and holiday gifts all go in there, split into portions. The spend section typically gets used when hanging out with friends or after sports practice. Usually candy or junk food. If going on a planned field trip or a group gathering with friends, we throw in some extra funds ($5-$20) so they can get food, snacks, or treat a friend. Nothing is digital or credit based.
When the Save or Give sections get full, kid gets to pick a charity (‘Give’) or we walk down to the bank to deposit the ‘Save’ cash into a kid’s saving account with no monthly fee.
It’s worked pretty well so far.
