Is the disappearance of species in families a good or a bad thing? What is certain is that pocket money, once given to children in cash, is gradually being replaced by interbank transfers. The question then arises of how children use their money to pay what they need and what they want. This has given rise to a number of neo-minor banks that have embarked on this expanding market. So the card for teen, good or bad idea? That's what we're gonna see here.
What is pocket money?
Pocket money is a sum of money, a small amount, given regularly to children to reward them for an action, to enable them to satisfy a need or envy or simply emotionally.
In addition to practical and emotional aspects, pocket money can take on an educational aspect. Some parents take advantage of pocket money to provide financial education to the child in a more or less fun way. The aim is to raise awareness of the value of money, the work needed to earn it and the need to save it.
How much to give to his child and how?
The amount to be given to the child varies according to age, but there is no fixed amount or comparison between families. The generally accepted rules are as follows:
- The younger the child, the smaller the amount and the greater the frequency, since the notions of time are shorter. Young children value physical objects such as coins and notes more than virtual money.
- The larger the child, the larger the amounts and the lower the frequency (to reach once a month). The low frequency allows you to learn how to manage your budget. On the other hand, adolescents are more likely to represent the value of a virtual amount. From the age of 12, children understand what they can do with the amount they see on a screen.
Amounts can start at 1 or 2€ per week for the youngest and go to 100€ per month for young adults.
The pocket money ritual thus simplifies with time to lead to an automatic transfer, each month, to the child's account from the age of 15.
Minor's card or cash for everyday life?
Species do not disappear only in homes. They also disappear among traders and the means of payment must therefore adapt. In addition, teenagers have almost exclusively digital uses. It is very rare to see them in peasant markets where cash still dominate today and, on the contrary, it is very common to see them pay online to buy a book on Amazon or a Play Station game.
Indeed, yes, theblue card for minoris destined to dominate the use of pocket money in children and teens. The real question is therefore more about the choice of the bank, because that is what will shape the way the child will evolve with his card.
Advantages and disadvantages of blue cards for teenagers
It must be borne in mind that, compared to cash pocket money, bank cards have advantages and disadvantages. Here they are:
Benefits
Here are the main advantages of the blue cards for teens:
- The credit card is co-managed by parents and the child. The child is therefore protected and accompanied by the parents.
- In case of loss of the card, it can be blocked by the liado and by the parents
- There's no risk of losing money or being robbed
- Money can be sent regularly (programmed) or on time
- Banking applications for children have financial education functions
- Children can pay on the Internet
- Parents can restrict payments (online payments, contactless payments, categories of merchants, etc.)
- The card is not accepted by merchants who set an age limit
Disadvantages
Here are the disadvantages of a teen card:
- Some free cards push for consumption with the stimulation of cashback
- Non tangible money can become very abstract for children
Which card to choose?
Neobanks are the most suitable for young people, but not that. Their offers are also the most appreciated by the new generation who wants a pleasant map and a well thought out application. In this peloton we find Kard, Pixpay, Vybe, Nickel Jeune, Revlout Junior.
Online banks are trying to catch up with offers like Boursorama Banque Freedom and Monabanq Jeune. Although less attractive to teenagers, they are much more convenient for parents who are already clients. Their offers also include insurances that are not found in neobanks.
Conclusion
The equipment of teenagers with bank cards is inevitable. This is explained by the totally digitalised uses of teenagers, the co-management parent child and the very attractive price even the free of charge of some offers. So it remains to be chosen from a dozen relevant offers for both children and parents. The good news is that all neobanks and online banks are working to distinguish themselves from each other. This should make it increasingly easier for her teenager to choose the account.