It is important to teach children to manage money. I was at Safeway the other day and I overhead a mom tell her son that money doesn't grow on trees. His response was, "Yes it does. Money is made from paper which comes from trees." I had to laugh, but I sympathized for the mom. There are so many aspects of parenting that are challenging. Teaching children to be responsible with money is one of those challenges.
A couple of trendy techniques to teach children to manage their money include Envelope budgeting or Prepaid Visa budgeting such as with a PayPower card. Let me tell you about each of these techniques. While I am focusing on using them for children, they are also great for adults to use for budgeting! For instance, if you spend too much on eating out each month - these are great ways to track your spending.
Another trendy technique is to use a Prepaid Visa such as a PayPower card. I've heard this called the "Modern Allowance". Kids receive their allowance in the form of a prepaid Visa card and can only spend what they have, causing them to think carefully about their purchases. For instance, with PayPower, you can only spend what you have so there are no worries about overdraft fees or interest charges. It's accepted everywhere that Visa debit cards are accepted, including in-person, online, or over the phone. It's super easy to reload. Another nice thing, especially for kids, is that PayPower protects your card account from unauthorized use by the Visa Zero Liability policy if your card is lost of stolen. (As a mom, I can't emphasize enough how much I love the protection for lost cards!) The funds are also FDIC insured through the card Issuer if you register it.
While there are many prepaid card options out there, I like PayPower. One reason that I like them is that they are donating half of the purchase fee on PayPower cards purchased at local Safeway stores between 10/1/13 and 11/3/13! This coincides with NationalBreast Cancer Awareness Month and they are working with the SafewayFoundation and Stand Up To Cancer.
If you aren't familiar with breast cancer, let me tell you that when breast cancer is detected early, the 5 year survival rate is 98% (National Cancer Institute). The Breast Cancer Foundation helps women create a plan for early detection, breast health education programs at community outreach programs across the country. This early detection is a great way to save many lives.