5 Reasons Why You Should Give Your Kids Allowance Money

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As a parent, it’s hard to know how much is enough money, or too much, to give to your children. It is a fact that your children will need money, and in most cases, if they do not get it from you, they will not have any.

kids money

So… Here’s a few good reasons to give your kids’ money & how it will help them learn:

Track How Much Money You Give & What They Buy

Carefully tracking how much money you give to your children and how often you give it is a great way to start teaching them about money management. When your kids run out of money and ask for more, first ask them to look back at what they’ve been purchasing so they realize where their money went.

Mom & Dad Are Not a Bank

In addition to helping your children learn about money management, another good thing allowance helps kids with is that it teaches them that mom and dad are not a bank with unlimited resources. If children are given their own money to manage, they are more likely to start paying attention to how much things cost – something which in turn will help them appreciate the value of their possessions.

Real-world Practical Experience

Giving money to your kids, tracking it, and empowering them to manage it will give them real-world experience. Practical money management is not taught in schools, learned in books, or dealt in a game of Monopoly. You owe it to your kids to give them hands-on, practical experience. This starts by tracking the money you give them and evolves into enabling them to learn from mistakes in a safe environment designed specifically for kids. Giving your kids an allowance and a prepaid debit card for kids is an excellent way to empower them to practice safely managing money.

Saving, Spending, Donating

Some parents like to go even further and split up their children’s allowance into different categories. Some money can be given as a staple no matter what, some money has to go into savings (an excellent idea), and some money can go to charity. These are great ways to get your kids thinking about money and all the different things they can do with it if it is properly managed – philanthropically, entrepreneurially, and even just practically.

Money Needs VS Wants

Jason Alderman, Head of Financial Education at Visa believes that an allowance helps to teach kids the difference between “needs” and “wants”, something kids are never too young to learn! Jason’s advice about allowance and money management is something that all parents should take into consideration. Check out Allowance Manager’s Basic and Pro apps for more ideas on how to help manage your children’s allowance.

How Debit Cards Teach Kids About Money Management

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Money management no longer involves the ‘cash is king’ policy of the old days. Everything is plastic now, and for parents who want their kids to grow up money-savvy, it’s an essential teaching element that can’t be ignored. Your child needs a safe debit card to practice making purchase decisions like the Allowance Card from Allowance Manager Pro! But, regardless of the debit card you choose for your kids the best way is to empower them to understand how plastic plays into money management.

Many parents these days neglect to include debit cards in their kid’s money management education. As a result, these children are never taught what they need to know, how they need to responsibly manage their debit card, and the fundamental differences between cash & prepaid debit cards.

Like so many other young adults, they will fall prey to unscrupulous credit card companies later in life, rolling debt and demanding banks. The only way to prevent this from happening, is to get them a debit card now, and include it in their money management education.

5 Ways to Teach Kids about Money Management with Debit Cards

  • Fees, interest and charges – With all forms of plastic money, there are fees, interest and late charges. Help your kids understand how these fees work and why they can be applied. For proper money management, your kids need to find out how this works, by practicing using their card. Making mistakes is key to learning, especially when it involves removing money from next month’s allowance. Help your kid learn in a safe environment
  • When to card it, when to draw cash – There will be times when your child needs to draw cash. Having a prepaid or joint account debit card will force them to learn when cash is appropriate. They’ll accumulate charges and will make future decisions based on these money management skills. If you’re like other parents and feel cash is careless because you can’t supervise cash purchases, find a card like the Allowance Card from Allowance Manager Pro that blocks ATM withdrawals.
Allowance Card from Allowance Manager
  • The vital ‘cards are money’ lesson – Having a card instead of cash, always makes the cardholder feel like they have more to spend, so they generally do spend more. This abstract feeling is what leads to instant debt, overdraft, or other penalties  Having physical money is one thing, but for real money management you need the card spending limits lesson for your kids. Setting spending limits is important so that kids learn money isn’t unlimited. Ensure the card you choose allows your family to set spending limits!
  • Tracking your spending habits – It can be tough to explain to a child where their entire $20.00 allowance has gone. When you have a debit card for kids, it tracks their spending habits, so that you can explain how, where and why they have run out of money so soon. Then they improve their money management the following week. Without tracking, it becomes very difficult to manage your family’s money. Allowance Manager Basic is free for families looking for an allowance tracking tool that can be used from a computer or mobile phone.
kids money management
  • Managing their account – Introducing your child to a debit card, means that they’ll have an account ledger to manage. It’s a great place to save money, learn about additional ways to save or spend wisely, and it will improve your child’s overall money management skills. Make sure the account ledger is easy to use for both you and your children and that everyone is clear on how to access it!

These tips are just 5 ways that debit cards help to educate your child and increase their financial literacy. Money management is really as simple as finding the right tools.

When your kids are brought up understanding that plastic is money, and it should be treated that way, they’ll succeed at any money management task they put their minds to. Best of all, they won’t be naïve enough to be caught in that ‘young adult debt trap.’ 

Teach your kids about money management today, by getting them a debit card from Allowance Manager that is safe & easy to track, monitor and use anywhere. You owe it to your kids to help them understand that plastic will play a role in their lives!

5 Practical Allowance Tips to Share With Your Kids

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An allowance is like a salary for kids – what they choose to do with it now, gives you insight into what they’ll do with their salaries tomorrow. That’s why you need to share as many practical money management tips with them as you can, while they are still learning. Because we all know the bank of Mom & Dad will close sometime sooner then later.

Preparing your child for financial management in the real world, means getting them a debit card for kids. Tracking with a prepaid debit card is the first step to noticing in their negative spending habits.

This debit card will help you track their progress over time, which is an excellent teaching tool for review, discovery and understanding. Your child’s allowance is partly in your hands, and partly in theirs, so don’t be afraid to share tips with them as you go along.

The 5 Kid’s Allowance Tips That Make a Difference

  • Daily reviews for monthly improvements – A child learns through repetition, and you need to ensure that yours is always thinking about their interactions with money. An allowance must come with other responsibilities, like reviewing their spending habits, and discussing ways to improve their savings with you each evening. The best way to review and TRACK your child’s spending / earning habits are by using Allowance Manager Basic.
  • Saving their slips – Money management is just like any other form of financial control, and it helps to save your receipts. Kids like to be able to touch things, and slips need to be kept so that they can record their cash transactions for later review. Get them to pin these slips to a board, so that their allowance is tracked closely. If your kids will never save slips, have them try Allowance Manager Pro which automatically tracks their spending habits.
  • Behave like a bank – If your kids are young, and they want to borrow more money
    Kids allowance management    after their allowance has run out – behave like a bank. Offer them a loan, and charge them interest, and late fees. This quickly teaches kids not to mess around with loans, and they’ll think twice before asking for one later in life.
  • Rewards for saving – Kids money management is all about making the process of managing finances fun and easy, if you follow the rules. Give your kids nice rewards when they reach savings milestones that inflate instead of diminish their allowance. It could be anything, from their favorite meal to a trip somewhere special.
  • Using a money management program – Your child’s money needs to be monitored and reviewed often. That’s why it’s important that you spend an hour with them each night, working together on an allowance tool online. They’ll love interacting on the platform, and you’ll be able to teach them why and how their money has vanished. Try Allowance Manager Basic (always free) because it’s the easiest way to manage your kid’s allowance!

These 5 practical allowance management tips will help your children become involved in the entire process, until one day, they’re able to manage their money on their own.

Make sure that you explain the ins and outs of money to your kids, on an ongoing basis. An allowance is the first step to financial freedom, and it starts now for your kids! All they need is a nudge in the right direction.

Get your kids started with Allowance Manager Basic right now, share these helpful tips, and set them up for long term financial success, later in life!

Turning Your Children into Entrepreneurs: 12 Safe Ways that Kids can Earn Money

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Do your kids ask you for money all the time? Are you unsure how much money to give your kids and how often? If your kids are too young to get a ‘real’ job, but they are constantly hitting you up for money, teach them a few ways to start making their own money! There’s nothing wrong with teaching your children some entrepreneurial values – in fact, the earlier the better! The early bird gets the worm, and your kids have every chance to become good with money now!!

Making your kids work for extra money is a great way to teach them its value, and that it doesn’t just appear every time they want it! Here are 12 ideas you can give to your kids to help them start earning some money of their own:

1) Car wash. A car wash is a great way for kids to earn some money, and it can be a lot of fun. Best done with a group of kids, have your children round up some of their friends, a few buckets, soap, sponges and a hose, and possibly a vacuum too. Encourage them to find out what all the local car washes are charging so they can offer a competitive price.

2) Garage sale. This is something that is probably more of a family effort, but you can make your child assume the primary organizational/managerial roles. Get your house cleaned out and have your kids make some money at the same time! A considerable amount of planning and research needs to go into a garage sale, so it’s a good thing to do to teach your kids about all aspects of running a business. They will need to advertise the sale in advance so that people know about the sale. This can be their Marketing 101 course. They can make posters and put them up around the neighborhood, and possibly even place an ad in the local paper or on a local community newsletter or forum online, and/or email family, friends and neighbors. Additionally, they will need to come up with the prices for all the items being sold, create an inventory of everything being sold, and manage the money during the actual sale. Managing the money during the sale includes managing the cash transactions and adding up the total profits at the end.

3) Give your child an allowance! If you already give your child an allowance, we suggest offering them a household job incentive to earn more cash on top of their allowance. This could be giving your children the option to help with, or completely take on, big household projects like cleaning out the attic or garage, painting a room, raking all the leaves out of the back yard, shoveling snow, etc.

4) Collecting cans and bottles for recycle. This one is pretty self-explanatory. If your child is really industrious, they might also try contacting local businesses and schools to see if they can acquire any extra cans and bottles from them. Additionally, this could be something that leads into a community effort, a litter clean-up (which would also look very good on a resumé in the future…).

5) Bake Sale / Lemonade Stand / Juice Stand / Mini Farmer’s Market. Like the above garage sale idea, this one involves some planning. Also, your child will probably need a small loan from you in order to purchase the necessary ingredients to be baked/juiced/grown and sold.

6) Dog Walking. This is a fun way for your kid to get some exercise, meet the neighbors, get outside AND make some money! If it becomes something they really love and are good at, you might suggest they build a website or facebook page to advertise their services. Dog walking is something that a child much younger than 12-years of age probably should not do alone though, and you want to ensure that your child is walking dogs in a safe neighborhood and that they always have a fully charged cell phone on them when they do.

7) Babysitting. Once again, this one is pretty self-explanatory! Another task with an age minimum to it, babysitting is best for kids about 14 up and you will want to make sure your child has their phone on them at all times in case of an emergency.

8) Cleaning. Don’t have the time to clean your house? Do you have a cleaner? If not, this is a great task to delegate to your children for some extra cash – and one that you can really enjoy the benefits from!

9) Mowing the lawn. This is a less common task these days, but if you have an able-bodied child and a large enough yard, there is no reason why your child can’t mow the lawn, or other people’s lawns.

10) eBay. Learning how to navigate eBay is a good skill to learn, and once again, the younger the better. Not the most user friendly platform in the world, once mastered, eBay can be a great source of additional income for anyone.

11) Etsy. “Buy and sell handmade or vintage items, art and supplies.” This is a great forum for your kid to master. If they don’t sell their own work, they can help friends or relatives sell theirs. Talk about teaching entrepreneurship :)

12) Computer Help! One perk about being in our children’s generation – computers are second nature to them. Kids today can type and speak technology in ways that we as parents could never have even dreamed of when we were their age! If you have friends that needs help with computer-related things, see if your child can help out, and determine an hourly rate with them. Maybe even get them started on Excel early?

For more ideas on helping your kids make and save some extra money, check out these 6 fun activities on money management for kids!

:)

Helping Kids Understand Taxes!

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Do you remember hearing (and possibly even fearing) the word “taxes” when you were a child? I have a distinct memory of my grandfather telling me, “Nothing in life is certain except death and taxes!” when I was pretty young, and it definitely made me a little uncomfortable. It also took me about a decade to understand what he was talking about.

So even though I didn’t really know what taxes were when I was a kid, I knew that, whatever they were, no one liked them. Now that I am an adult, I think back to when I was too young to really understand what taxes were, and I really wish someone had taken the time to explain them to me. Taxes are one of those adult subjects, like sex, that no one really explains to kids until they’re older, and sometimes no one ever explains them to kids at all. It seems kind of unfair to leave children in the dark about such an important subject.

It’s important for your children to understand that even though taxes sound unpleasant (and they kind of are), they are also very important and they pay for a lot of things we need, like schools, policemen and firemen, safe roads, 911, and even national security.

Instead of making taxes into an adults only conversation, why not sit your children down and explain to them in layman’s terms what taxes actually are? You can approach this conversation however you think best, but teaching your children about taxes is a great way to get them to start thinking about their finances early on.

And, in case you need help, watch this fun video with your kids for a more in-depth explanation about what taxes are and what tax money is used for.

Baby Steps: Easing Your Children into Financial Understanding

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Raising a financially responsible and competent child in today’s society is no walk in the park. How can parents teach their children the value of money in this materialistic world when everywhere they go they are propositioned with purchasing something new and shiny, or else they aren’t trendy? Brands market their products to children and babies starting at infancy – first targeting nervous new parents with guilt tactics, then later targeting easily influenced children, making them all feel as though they genuinely need the products being marketed to them.

So how can parents best teach their children how to be financially responsible and intelligent?

Teaching a child the value of money is something that needs to start at a young age, and most agree, the value of money is generally related to hard work and discipline. The most effective ways to teach children the value of a hard-earned dollar, is to make them earn a few dollars themselves! Here are a few ideas to help you as parents teach your children both the value of money, and the best ways to start managing it, including knowing how and when to spend it.

Make them earn it!
Nothing teaches appreciation for something more than having to earn it. If your child wants something, tell them they have to buy it with their own money! You can then give them the opportunity to earn money at home by completing big projects/jobs at home – like painting a room, cleaning out the garage, washing all the cars etc. Jobs you can attach a monetary value to are a great way to teach your child the association between work and money, and jobs like those aforementioned will help to empower your child to have a much better understanding of money and its value, and get them thinking more responsibly about saving and spending.

Get a job.
While it may be illegal for a child to work under the age of 14 (http://www.dol.gov/compliance/guide/childlbr.htm), there are a number of things children can still do to earn money that will teach them the value of a hard earned dollar. Popular money making ideas for kids include garage sales, lemonade stands, car washes, babysitting, mowing the lawn, cleaning, dog walking and even (in some places) paper routes.

Empower your child to become better with money!
Sit down with your child and create a plan to help them eventually be able to buy whatever product it is they want. Have them work out how many hours of work, over how many days, it will take them to be able to eventually earn enough money to purchase whatever it is they want to buy. Creating financial plans like this is an excellent way to help children prepare for the future. It is important that children learn skills like this when they’re young to help them better prepare for the much larger purchases they will have to make in the future!

Once a child understands how hard they have to work to earn and save just a few dollars, they will likely have a newfound appreciation for what they should do with their money. Buying things on a whim or things they don’t really need will not be high on their priority list if they are the ones paying. For more ideas on how to get your children thinking about saving, check out this video about the Allowance Manager story and see how the kids who started it think about saving and spending their own money.

Allowance Manager Pro: Supervise Kid’s Allowance BUT Empower Them To Manage It

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Have you ever been anxiously shopping with your lovely kids wondering “will I make it out of here alive?” You’re almost home, until you enter the checkout aisle and suddenly “Mom, Dad, will you buy this for me?” echoes all around you…

It’s not that we don’t want to buy things for our children, but we need to teach our kids the value of money. As parents, we are not a bank. We wish money grew on trees, but it doesn’t. And to top it off, sometimes life makes it challenging to manage an allowance for kids.

Teaching kids about money is an activity that needs to be easily supervised by parents, BUT easily managed by children. That’s why co-founders John, age 12, and WIll, age 11, Meader set out to create a practical tool with a little help from Dad.

With an intuitive, user friendly interface- Allowance Manager is elegantly designed for Moms and Dads who need an easier way to remember, track, and empower kids to manage an allowance. In less than 5 minutes, a new user can signup for FREE, create an account for their kids, set up automatic weekly allowance deposits, and manage their account ledger anytime from their computer or mobile phone. Say goodbye to scribbled sticky notes stuck to the fridge. Say hello to helping your kids practice money management!

Allowance Manager Pro

 

 

 

You Asked for Allowance Manager Pro. We Listened.

Allowance Manager has quickly grown to an active community of 100,000+ users who have been demanding a new offering of its service. Users requested that Allowance Manager Pro make the money real so kids can safely and independently practice what it means to manage money using an Allowance Card, a prepaid debit card for kids.

“Simplicity, convenience, and safety were key factors in how we designed and built Allowance Manager,” explained Meader, a former Apple and Adobe software engineer who created the company as a way to help manage the allowances of his two school-age sons. “It was important that we empowered our kids to manage their own money, but as parents, we needed to maintain control.”

Safe for Parents
AllowanceManager.com is a certified licensee of the TRUSTe Children’s Privacy Program, which is approved by the Federal Trade Commission as an authorized safe harbor under the Children’s Online Privacy Protection Rule.

Safe for Kids
Parents can institute parental controls including spending limits, restricted vendors, automatic deposits, email notifications and real-time transaction text alerts. ATMs and cash withdrawals are blocked on the cards to prevent children spending cash on illicit purchases, or items that can’t be tracked.

How Allowance Manager Pro works?
Parents setup a FREE Allowance Manager Basic account online, and can upgrade from Basic to Pro by entering their credit card and billing info. Allowance Manager Pro costs as low as $5.75 / mo per child.

Kids can use their pin-protected Allowance Card, which can be customized with a photo of their choice, to make purchases where major cards are accepted. Parent’s check-in to their accounts via their phones or computers anytime, anywhere. There are no hidden fees, no overdraft or credit risks, and zero liability for unauthorized transactions.

If you’re planning on giving your kids money, or already have decided upon an allowance for your kids, we encourage you to learn more about Allowance Manager Pro.

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How Allowance Manager was Born…

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Everyone loves a good story. Bedtime stories, campfire stories, you name it. They all have a certain razzle-dazzle. Well, at least that’s what we think.

Since we’re rolling out new features to Allowance Manager users this month, we thought we’d take a trip down memory lane and share our story! We hope you like stories too!

Where did the idea for Allowance Manager come from?

Allowance Manager is the brainchild of Will and John Meader, with a little help from their father, Dan Meader. The idea for Allowance Manager was born when the boys went to a Costco-like warehouse store with their father about 2 years ago.

If you’re a parent, I’m sure you’re well aware of the trials and tribulations that unfold while shopping with your lovely children :)

Like most kids, upon entering the store they were both immediately enticed by shiny new items for sale. Focusing on a new video game, the boys pleaded with their father to please buy them the game. Trying to be tough, Dan told the boys they were more than welcome to buy the game, but with their own money. This is when things started to get a little complicated.

Although Dan had started giving allowance to both of his boys some months earlier, he hadn’t actually been very good about remembering to give the boys their money and he also hadn’t really been keeping track of how much he owed them. It was at this point that his boys stepped up and worked out how much allowance they should have accumulated between them. After some discussion and logical reasoning, the boys determined that 3 months earlier their dad had promised them each $1 a day, so, logically, they were each owed about $90. After working this out, the boys, products of the iPhone generation, commented, “Wouldn’t it be easier if there was an app to keep track of all that?!?!” And that was when Allowance Manager was born.

What is Allowance Manager?

Allowance Manager is a product that parents and children everywhere have at one point or another probably felt they needed…or certainly felt the absence of! It’s a program that helps parents and their children keep track of their allowance and it helps kids practice managing money in a safe environment!

Why use Allowance Manager?

Allowance Manager is a necessary money management platform in todays busy, consumer based society. Children need to learn the importance of money management from a young age – and often times, as Dan proved on that fateful day two years ago, their parents need help teaching them!

How does Allowance Manager work?

Fortunately for Will and John, Dan is a software engineer who knows a thing or two about developing apps. Dan and his boys brainstormed and developed a beautifully simple online (and mobile, yep we have an app for that!) platform that is immensely beneficial to both children and parents. The Meader boys seem to have thought of just about everything. And they did this because it made their lives easier, and we hope it does the same for you!

Allowance Manager offers two primary services:

  1. Allowance Manager Basic (always free) allows parents to set and track their child’s allowance every week from anywhere, anytime. Additionally, you can reward or punish good or bad behaviour and monitor chores or other miscellaneous things.
  2. Allowance Manager Pro makes the money real. Let us explain… The money held in Allowance Manager Basic is virtual. It automatically updates every week, but parents have to manually update purchases and withdrawals. Kids must still ask their parents for money that removes the ability for kids to learn independently. Allowance Manager Pro allows parents to trust their kids to manage their own money, make real life spending decisions, in a kid-friendly safe environment. It comes with an Allowance Card, a pre-paid debit card for kids.

With a program like Allowance Manager, there’s really no reason why kids can’t start learning about money and how to manage their own budgets and finances from a young age.

As parents, you probably wish you had Allowance Manager when you were a kid! Click here to learn more about Allowance Manager’s features!

THE END :)

 

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Teaching Your Children About Debit Cards For Kids

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Debit cards for kids are an essential financial tool that your kids will need to learn about, sooner rather than later. Plastic is a large part of our society, and the fastest way to rack up insurmountable debt when you become an adult (if kids are not prepared from an early age).

That’s why at Allowance Manager we believe PRACTICE MAKES PERFECT!

In fact, the reason why a debit card for kids is so important – is that it actively prevents your children from falling into the debt trap the minute they get their first card.

Nearly 60% of all Americans have at least $7000.00 worth of debt on their credit cards at any given time. If they had learnt about credit cards for kids, perhaps this wouldn’t be such a widespread problem. One thing is certain – no debt means greater financial security.

How Do You Teach Your Kids About Pre-Paid Debit Cards?

debit cards for kids

  • Debit cards for kids should come with a set of rules. Define yours before handing over the card, and enforce them by reviewing your child’s account history at the end of every week.
  • If you choose a pre-paid debit card for kids, keep in mind that these don’t build a credit history for your child. They are however, excellent practice cards for younger children, before moving onto credit cards for kids.
  • All debit cards for kids should come with a set limit, or an amount each month. Make sure that your child knows this is all they have, and that it’s up to them to budget and spend or save the money wisely.
  • The first few weeks they use their debit card explain how transactions work. Make sure that your child understands that every time they use their card, they’re not using imaginary money it’s being deducted from the total they have available and that money can run out.
  • Enforce the consequences of your child’s actions. If they’ve spent all of their allowance – there is no more money for them. Debit cards for kids will show your children that if they aren’t careful, they’ll be broke!
  • When you bank for kids, it builds good faith with your banking institution. The same goes for using debit cards for kids. Over time, your child will be well versed in how our “plastic” society works. They will be primed and ready to transition into building a credit history, and once they come of age – will be able to finance a car, business or home.

Teaching your kids about money is about more than securing a debit card for kids, or making sure that they know how it all works. It’s about slowly trusting them to make their own financial decisions, based on the important lessons that they’ve learned about money.

Children are quite reactive, and if you guide them properly – they’ll figure out how to make sound, intelligent financial decisions using debit cards for kids. Just remember to keep guiding them, by revisiting their financial habits at the end of every week, or month.

Check out Allowance Manager Pro today which comes with a NEW Allowance Card. The time is now to empower your child to begin practicing managing money with a safe, kid friendly, prepaid debit card from Allowance Manager! They may be just kids today, but they need to make good financial decisions throughout their whole life as they get older!