We know that online bank accounts can offer increased benefits like favourable savings rates, increased convenience and flexibility — so it’s no surprise that more and more parents are turning to the internet to look at options for their children. However, there’s almost a bewildering choice for parents when deciding how they should help their children manage their money online. Our latest blog post is aimed to help you by outlining the options and some tools that can really assist in teaching your children about money.
From online bank accounts to pre-paid cash cards — the web now offers a range of products to manage your kids’ money online and answer other common questions related to educating them about finance.
Here are some of the most popular options for children online:
Children’s Saving Accounts
There’s a wide range of children’s online savings accounts on offer, all paying different interest rates in a variety of ways.
Regular savings accounts often pay the highest interest rates (as high as 6%). In return, you must put away a minimum sum of money each month. These accounts are great for long-term saving, however, you’ll often lose the rate if you miss a month or need to withdraw cash.
Children’s easy access saving account rates will change both with the Bank of England’s base rate and as providers change their competitive stance but the benefit here is that you can access your children’s savings without penalty.
Fixed savings accounts for children give a guaranteed rate for a set period, but during that time you can’t access your money. These are a great online option if you’re happy to lock cash away for the entire term.
Not only does online saving give you access to some of the best interest rates, online savings accounts can help teach children several important financial lessons; the power of compound interest, setting and achieving goals and the importance of saving.
Kids Debit Cards
One of the best spending options for children, and in particular teenagers, is the pre-paid debit card. The pre-paid debit card allows you to load funds onto a card online for your children to then use.
The pre-paid card prevents your children from running up any large bills on your credit card. It also allows them the freedom of their own debit card but with the added security that they can only spend what is loaded on the card. With the goHenry card a parent can choose how much can be spent (per transaction, and per week) and where the card can be used (high st, online, cash machines) for each child; something unique to goHenry and not offered by anyone else. This means it’s a safe way to shop online and offline and gives independence to children whilst ensuring parents can continue to oversee their children’s spending.
goHenry isn’t just about spending through the pre-paid debit card, though. goHenry offers children the option of earning money through completing chores and tasks that their parents set them to do — a great way for teenagers and children to earn money. Saving goals can also be set too, which means it’s about earning, saving and spending.
Teach kids about money with budgeting tools
Online budget tools are also a great way for kids to learn about money. By using the internet to track what they are spending, children can take responsibility for their own finances and learn valuable money skills they’ll need as they head towards adulthood. There is a wealth of budget trackers and other tools available online from apps to downloadable templates.
Whatever you choose to do online, the key is to make managing money and financial education fun and involve your children in choosing the right tool for them.