What must be discussed with the children before they receive a payment card and pocket money on it? | Life

Children, especially those with whom parents do not talk about finances from an early age, tend to think that money is an unlimited resource, which parents receive when and as much as they need. Withdrawing cash from an ATM or paying with smart devices can be even more impressive for little ones – “money from nowhere”! However, paying with bank cards or smart devices is a common adult’s daily routine today, and it will be even more common for our children.

According to the study, 4 percent 5-6 years age children already receive pocket money in their bank account. in 2017 in this age group there were no such recipients of pocket money at all. 36 percent receive pocket money by bank transfer. 11-15 years old age children. This is 23 percent. points more than in 2017.

42 percent points compared to 2017, the number of 16-19 year olds receiving digital pocket money increased. part of children aged It accounts for 70 percent. Well, between the ages of 20-23. 83% of children receiving pocket money by bank transfer. and is 28 percent. points higher than in 2017.

Digital money is also earned

5-6 years – this is the age where children can still have a very strong belief about how money comes out of nowhere and can be had as much as needed. However, as the study shows, children of this age are already starting to receive pocket money and some of it into their own account. Therefore, even before the little ones start receiving pocket money, it is important to develop their understanding that money is not an unlimited resource. Also – to help understand how they are earned.

Well, when the kids start getting pocket money in their account and have the ability to spend it, talk about digital money being just as real as cash, just received and spent in a different form. And while it’s easier for kids to understand when they run out of physical money, digital money is just as limited a resource.

Expense planning and tracking

Budgeting and tracking expenses can help you manage your money successfully. When the child’s money is kept in a bank account and spent using a payment card, a smart bank app will help the child to track his expenses and see how much money he has spent.

Just like when giving pocket money in cash, so when transferring it to a bank account, it is appropriate to predict the amount for a defined period of time, for example, a week or two, and to agree that if the child spends the money quickly and recklessly, he will not necessarily receive additional money. So, encourage children to plan their spending – how much they can spend in a day so that they have enough pocket money for the whole period, encourage them to keep track of their expenses in the banking app. Also, remember that if you go over your budget one day, it’s a good idea to spend less the next day in order to stick to your budget.

Critical security issues

After enabling the child to pay with a card and connect to the Internet bank and smart app, it is very important to discuss the main security issues with him. First of all, tell the child that under no circumstances should he reveal his payment card data and its PIN code to other persons, and when paying with the card and entering the code, he should try not to be seen by outsiders.

Warn the children that the bank never asks to disclose logins to the internet bank or other personal financial data via SMS or phone. Fake messages, calls and emails letters with a warning that someone is using our account or making payments from it – a common tactic of fraudsters to defraud money.

If children are making online purchases on their own, warn them to never approve payments they didn’t initiate themselves. Encourage to always carefully check the verification code on the screen and in the Smart-ID app to ensure that the payments made by yourself reach the right recipient.