From pocket money to tap and pay: How personal finance models for kids have evolved this year

Beginning in the third decade of the 21st century, we stand at the threshold of the future. As Mr. Bill Gates says, “The future of money is digital currency.” It doesn’t take a detective to realize that the transformation of many things we interact with will undergo a change. Many things that are secondary today will become the new normal tomorrow. The natives of the digital age will be those who use a completely digitized monetary arrangement, so it is crucial to help them manage their money using a technological touch.

Why electronic money is a necessity for digital children

Pocket money culture will never go out of style! When we were kids, we all wanted to take the opportunity to get some monthly money for those treats, fancy stationery or fancy toys. The children of the technological age are the same. The concept will never change, but they pocket their bills by “assigning” the opportunity. As the world shifts from cash to digitized payments, your child’s need for a digital wallet may be more than a passing fancy. It can become a necessity.

Parents realize that we live in unpredictable times. Having experienced demonetization and lockdown, ditching cash for payments has been a lesson for most of us from days gone by. We learned our lessons the hard way, but the children of the technological age are still young and can understand the benefits of programmed monetary systems.

Regulating the expenses of a child each month is extremely important. With a digital wallet complemented by a smartphone app, regulating a child’s payments becomes a breeze. Helping children learn the virtues of saving money and avoiding overspending is one of the best things parents can teach their children.

A digital wallet can be set to a limit and locked on one number to discipline youngsters from an early age. Payment Card Industry Data Security Standard (PCI DSS)-enabled cards, which are the tools for initiating transactions using a digital wallet, are extremely secure. Parents who give smart card access to their wards can be remarkably stress-free as entry to the e-wallet is password-protected.

Digital Money: Smart Cards

Some innovative and kid-focused payment platforms have created an app-augmented digital pocket money card. These smart cards have features like instant transfers, monthly or weekly allocations, and real-time notifications. It gives children the independence to control money in their own way, but always under the watchful eye of a guardian.

John Donahoe said, “Digital currency is going to be a very powerful thing.” The monetary systems we work with today will change to digitized systems in the future. Digital wallets are something that future generations will use in their daily lives. So it makes sense that we give kids their own smart cards and smoothly start this journey to financial independence today and help create financially responsible adults.

Disclaimer: Ankit Gera is the co-founder of June. The opinions expressed in this article are those of the author and do not represent the endorsement of this publication.

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