WATCH: Debit cards for kids
(CBS Newspath) — Millions of parents give their children an allowance. For decades it was paid in cash, but technology is giving families a new option.
Zanaya Diakite got her 9-year-old daughter Tamia a debit card designed specifically for kids. She puts her daughter’s allowance and money for chores directly on a customized Greenlight card. “The earlier that children do learn about finances, the less mistakes they’ll make when they do reach adulthood,” says Diakite.
Tim Sheehan, the co-founder and CEO of Greenlight, says, “We really wanted it to be about learning, financial literacy, really understanding the fundamentals.”
There are several cards on the market that allow kids to get rewards for chores or good grades. That money can be used to make purchases at approved stores, invest, or even donate to charities. Dean Brauer, the co-founder and U.S. president of GoHenry, says, “All the features are designed around helping kids learn how to budget, how to understand the differences between wants and needs.”
Andrea Ferguson Peterson got a GoHenry card for her 10-year-old daughter London. London says, “I usually tell my friends that I was saving for this or that, I was gonna go here and buy that because I had saved up for it.”
These debit cards typically charge four to five dollars a month depending on the plan.
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