Prepaid cards for kids are an excellent way to introduce your children to money and help them navigate the online world of payments safely and securely. Used correctly, with parental input, they can also be a great tool to help teach positive spending habits from an early age. Credit checks are not required and the minimum age limit is low (in our case, 6 years), so you can start whenever you feel ready. With the Rooster Card and app, you can easily monitor the progress your child is making and guide them every step of the way. The aim is to give your child that next level of independence and confidence with money, whilst you maintain peace of mind. They can spend their money online and in-store just like they would with a regular debit card, but with a few extra benefits:
1. It's easier to control
You get to decide how much to put into your child’s account. You can then either set spending limits (monthly, weekly, even daily) or simply monitor what they spend via the app. If the card gets stolen, lost, or you’re just not comfortable with how they’re using it, you can freeze the card instantly. Parents have the ability to switch off online purchases, ATM withdrawals and in store purchases. You also get instant notifications of everything they’re spending (that’s optional) and access to regular statements (a great educational tool!). This helps give way to conversations on how to value your money and the difference between purchases that matter and those that don’t. The RoosterMoney account also comes with its own sort code and account number, meaning anyone can send in money – making it easy to keep track and allow family members to contribute.
2. It’s educational
A prepaid debit card for kids is an excellent way to empower your kids to make considered spending choices and build money confidence. As the world of money becomes increasingly cashless, and money risks become less tangible, getting your children started with digital money early is a great way to learn how to be responsible with money online and to prepare them for the future. Downloading and reviewing statements is a good way to get your child started with budgeting – you can show them exactly what they spent and where, and help them understand the difference between needs and wants. If their allowance dries up, your kids can learn to understand what happens when they don’t have enough before the end of the month and the importance of budgeting, as well as the importance of having an emergency fund.
3. It’s safer than cash
Both a card and cash can be lost or stolen, but you’re more likely to get your money back if you lose the prepaid card. All you need to do is freeze the card and order a new one! Or if they find it, simply un-freeze it. A child’s prepaid debit card is a safe choice as it can’t be used in betting shops, off-licences or any retailer with age limits, whether online or offline. When you compare debit cards for kids, you’ll see the Rooster Card is one of the best prepaid cards for kids on the market. Not only is it the best value, from a security point of view it’s the only card with a dynamic CVV system – meaning you don’t have the 3 digits on the back of the card, instead you generate a new CVV number in the app every time you make a purchase. This significantly reduces fraud and helps keep your child stay safe online.
4. No overdraft
Your child won’t be able to spend more money than what’s on their account, meaning there’s no overdraft. You won’t need to worry about ending up with a huge bill at the end of the month, there’s no debt involved and there’s no risk of overspending. An account without an overdraft facility means you don’t have to worry about any decisions that could affect their future finances (such as a credit score). It also means that your child can learn and can make mistakes within the safe limits.
5. You can start young
Research shows that our adult money habits are set by age 7, yet many high street banks don’t offer a card before 11 or 16. By building healthy money habits early on, you can make sure your child is forming positive and healthy money habits as early as you want. At RoosterMoney, our minimum age is 6 years old, which means your child can learn the basics of budgeting, paying for something online and sending money to family and friends in a completely safe environment at a younger age.
6. It’s more fun!
Giving your children their very own prepaid debit card makes them feel in charge and do grown-up things such as buying something off Amazon or buying a present for Dad. By using the Rooster Card along with the app, your child can see the money they’re accumulating and the progress they’re making towards their goals. The app makes it easy for your child to visualise how much they’re spending and where they’re spending it. And the easier it is the more likely they are to engage. You can go a step further and provide your child with chores to complete on their Rooster account, along with rewards for completion. This gives them a reason to want to earn money and save up for something they want. Using prepaid cards for kids is a safe and secure way for your children to learn how to manage their own money, with you being able to check and guide them all along. The RoosterMoney account and card grows with your child, making it easy and safe to teach them important money skills along the way. Got any ideas or suggestions for what we cover next? Let us know at hello@roostermoney.com and it might get featured in a future blog!