In today’s world, Gen Z has grown more ‘aware’ of fashion, trends, purchasing, and personal freedom. Gen Zers, unlike millennials, are better at ‘going’ and ‘getting’. Teenagers spend a large portion of their pocket money or wages on a variety of items. Food, movies, school materials, field excursions, informal outings, clothing, accessories, video games, cosmetics, and other items may be included. Having stated that, buying is no longer a way for people to meet their requirements, but rather a way to release stress and preserve their social position. The days of parents shopping for their children and the latter having to be ‘fine’ with it are long gone.
Today’s children are becoming more and more technologically savvy as compared to prior generations. However, when it comes down to managing money and personal finances, kids could learn quite a lot from the elders, especially the art of saving and its importance in an individual’s life. As a result, it’s disputed whether a parent should allow his or her child to acquire or handle a debit or prepaid card on their own.
With prepaid cards, a payments app for kids like muvin can educate teens on the skill of saving, let them feel autonomous of their own decisions, and become generally financially responsible. This phase allows parents to help their children become financially stable and to successfully regulate their spending by keeping track of their spending.
Saving and investing are vital values that should be instilled in children from an early age. This will assist in comprehending the golden rule of investing: begin early.
Some Indian banks have taken a proactive initiative to legally provide banking services like, issuing debit cards, prepaid cards, and bank accounts to kids, and young adults to help parents instil confidence in them and give them basic lessons of money management and personal finances. However, bank credit cards are not allowed for individuals under the age of 18. Some new fintech businesses, such as, are already introducing prepaid cards for kids, which can be used for both online and offline purchases.
Prepaid cards may help teenagers in a variety of ways, in addition to the ones stated above: Teenagers and adults who use credit cards appear to have a financial buffer and do not learn how to limit their expenditures. These naive individuals are also tormented by the huge boulder of ‘credit card debts’ as the wonderful balance fades. Prepaid cards, on the other hand, educate youngsters on how to split their account balance based on their monthly goals.
These small prepaid cards can also teach you how to plan ahead. Following the budgeting process, the children can prioritise their wishes and requirements. Take educated judgments if they are torn between a gleaming pair of shoes and a piece of project stationery, or between the latest PlayStation and an improved laptop. These priorities will motivate individuals to put money aside for their desires.
Yes, prepaid cards provide youngsters a sense of independence and allow them to be their own rulers. But how can sensitive things like prepaid cards and money be kept safe and secure? In the event of mistreatment, parents and kids may use the muvin app to ban and unblock their physical cards at any moment.
Furthermore, the app’s mission function may be used by parents to teach their children about the worth of money. They might delegate modest domestic duties to the children and pay them after they have completed them.
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