Halifax childrens account with cash card?

beth3735

Noticed today that the account my children has can also come with a cashcard from the age of 7.

Im now debating whether to get 1 for my 7 and 9 year old, but the problem now a days is children assume if you have a card you can use it without thinking whats there to spend.
I know thats natural for young children, but im desperatly wanting to teach my children about spending only what they have. As you can see i have spent years in debt (wanted this paid off before eldest is 10 as i grew up with parents in debt and i followed their path, don't want this for my girls).

Do you think its a good idea, or just stick with giving their pocket money in cash? I really want them to learn the best about money management, not sure a card would help?

Thank you

SuperHan

Get them an account with a card, but you keep hold of the card. Make sure you know what's in their accounts, but when they want to purchase something, have the conversation around "Do you have enough money in your account?" and "What if you want something else later?"

This way they learn early that a card isn't an unlimited source of money, and is linked to how much is in their account. If they allow online banking it could also be nice to log in with them to check their accounts and let them see on the screen how much money they have 'saved'. Otherwise, ATMs are a good way to get the same effect!

grumbler

beth3735 wrote: »

Noticed today that the account my children has can also come with a cashcard from the age of 7.

What account is it? AFAIK only 11+ can have accounts with a card on their own name.

pvt

Beth,

I think that allowing them to have a cash card and understand how to budget sensibly will be a very good experience for them. I would encourage it, but make sure they understand they need to put money into it if they want to draw money out of it.

rb10

The Young Saver account gives a cashcard from age 7.

This is just an ATM card - not a debit card.

beth3735

rb10 Thats the one

Its just so they can withdraw the money themselves, but they have said a few times as younger kids to just take the money out, obviously innocently unaware that you need money there to 'just' take it out.

I think i will sort this out for them and have a chat, Luckily my husband is moneywise so he can do the main advice

pmduk

Perhaps throw in a little maths practice by encouraging them to keep a record of how much is in their account?

You'd be amazed how many people come on here in trouble because they have no clue how much they've spent from their account.