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Why is a Money App For Kids an important way to teach children about money? – Know-How!

“Personally, I’m always ready to learn, although I do not always like being taught.” – Sir Winston Churchill

An investment in knowledge pays the best interest. –Benjamin Franklin

Firstly, it is never too early for a child to learn the concept of money. Ways and approaches can differ but you can teach them about money from the age of 3 years. Surprising! Right?  

We often see people mindfully manage their money only after a certain age. But then that gets too late! This is why they often tend to make un-smart decisions on money management. 

Reason? It is not a habit. 

And good habits are best formed at the early stage in life. 

Agreed, in the good old days, when technology was just crawling, we didn’t have any choice. Hence, we never learnt much about money-management since childhood. But that’s history now! Thanks to technology, even kids can learn how to earn! And save and spend! This is exactly what money apps for kids do.

What is a Kid’s Money Management App?

Teaching children, the complexities and realities of money can be the most taxing task for a parent. Not anymore but!

A kid’s money app is an application that helps in educating your child about money. It is easy to use and does the job in the right way! 

You can start using a kid’s money app to help you with this. These apps are like pocket money app, specially designed for kids; so, it’s easy to use. The fun part is, your kids can help you with household chores or anything else that they can manage on their own as per the age. 

The concept of earning money is clearly implemented in the way these apps are designed and function. Usually, you can put in tasks for your children on the app and then reward them with money. 

Your kid’s account will be connected to a bank’s account and e-commerce site. This helps in keeping a check on your child’s spending habits. Any money-related habits can be controlled with the help of such money management apps for kids. 

Here’s more on how the app works!

Which KEY financial learnings are important for kids?

  1. What is Money? and its uses.
  2. Why is money important in daily lives?
  3. Value of Saving Money
  4. Spending money rightfully.
  5. Patience is key while earning money.
  6. Hard work gives money.
  7. How to be a smart buyer and not be fooled by fancy advertisements?
  8. How to do budgeting?

It is a gentle and moderate process. Every age will have a certain way and a certain lesson to be learnt about money. As a parent, you will have to be patient (yet firm) about money rules with your child. 

Birdfin- Why Is Money App For Kids Important Today? 

You and your child both can access the app and decide on what tasks you want your child to do. Once your child completes their task, you can reward them with payment as ‘money-crystals’ in Birdfin. 

An ICICI savings account and Amazon e-commerce are connected to the app. All the crystals received get converted to money which your child can spend or save. 

Below are some of the reasons why you should start using a kids money management app:

  • Fun Way Of Learning – A money kids management app is specially designed for children. It involves activities that make learning exciting and fun. Kids learn to be mindful and responsible all in a play mode. 
  • Digital Is The New Normal – As we step into a world that is driven by technology, money apps for kids are perfect. It teaches all that you want to teach your child about money and lets you record their money habits as well. 
  • Eliminates Time Consuming Methods – Gone are the days when the parents had time to stay at home and teach their children about life. Parents have to work harder to support the livelihoods in this costly world. Here, an app can be handy and effective at the same time. 
  • Keep A Check Instantly – You and your child will have access to the app at all times. You can quickly take a look at the app to know about the child’s money behaviour and analyze accordingly. 
  • Teach Other Important Life-Skills – Money apps like Birdfin helps in teaching various other skills. From the concept of hard work to helping to value money. It is a comprehensive app that can make your child socially and personally aware and better. 

Easy Ways To Teach Your Child About Money:

As parents, you have to go slow taking baby steps with your children. 

Start educating about money by talking about it. Talk about how saving and earning money is crucial in life. Help them set goals-short term, and long-term, and encourage them to achieve them. 

If your child is just starting with a career then guide them with money by including a systematic way to spend money. Along with the importance of money, teach them the ‘save share, and spend’ method. 

Your children must learn to save at least 10% of whatever they earn as pocket money or salary. The next 10% can be shared as a charity. Social service needs to be a part of their psyche to become better human beings. The rest 80% of the earnings can go towards spending. This is a very simple method. 

It is better to start developing financial skills in a child from the beginning years. For each age group, there are various ways to teach about money. You can actually start from the age of 3 years by introducing the concept of money and exchanging it for goods. All these you can teach them easily by just using a fun money app for kids. Building good money habits can be a grueling task but money apps make it easy! 

Talk to them more about giving more to the needy. Explaining the concept of ‘sharing is rewarding’ and making them help in the chores at home, both teach lessons about money and life. 

One fun way is involving kids in organizing parties at home to give them a practical experience about how money must be used mindfully. This also teaches budgeting skills and how to do the most in the available money. 

What is the importance of learning financial skills from an early age?

  • Value of hard work and patience: Life is not a bed of roses and the best time to teach your kids the harsh truth is by preparing them right from their childhood. 
  • Clear concept of saving for bigger goals: The concept of saving money becomes a habit if financial skills are taught to the child from an early age. This helps later in life when managing money becomes mandatory. 
  • Becoming more aware and responsible in life: The child when learns the concept of working to get his pocket money he is learning many life skills. These learnings make them responsible in nature naturally! 
  • Be financially independent: The moment the child starts growing up and understands the concept of money in a better way, he will develop a sense of independence in his finances as well. This helps to eventually motivate young minds to make a career. 
  • Collaborative participation in work: Birdfin helps kids earn their pocket money by doing chores. This concept makes the child help in every household chore and develops habits like washing their own plates, polishing school shoes, and more.
  • Understanding personal social responsibility: There is a self-development in the child when they learn about money. Birdfin not only helps in teaching about money management but also other life skills. It aims to bring complete development to the child’s personality. Helping and Sharing is rewarding, this needs to be instilled in a child for him to become a conscious citizen. 

Each money-saving app has its own charm! It’s a gradual process so be patient with your child as you teach what money is and what its value is. Birdfin is a well-thought app that enables teaching about money and helps the child learn in the simplest way. 

Why don’t you give it a try! 

Register today and keep a check on your child’s money habits.

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Financial Literacy Amongst Kids

“The art is not in making money, but in keeping it.”- Chinese Proverb.

Parents always wish the best for their children. This does not automatically mean the best toys or cool gadgets, it may be safety and security too. Thus, it is best to lay a foundation which they can build to do good in life.

To do well in life, one does not have to have loads of money, but a working knowledge of money! Sam X Renick, a pioneer in financial literacy, says that “Money is central to transacting life, day-in and day-out. It is involved in almost every aspect of life.”

However, not many parents help their kids become financially literate. A lot of them miss opportunities to have the talk and many are reluctant to discuss financial topics, but this does not benefit anyone.

In fact, kids are keen to learn about their parents’ wisdom. Even if you don’t teach your kids, they will learn lessons about money one way or another. So why not do it yourself to make sure they get proper financial literacy from an early age.

Build a Base

Sam X Renick, a recognized leader in financial literacy, states that it is better to start a kid’s financial education process at a young age as they start forming habits early on. So, it is better to build a base, show them how money works and let them see you when you are buying things.

If you are paying through your debit or credit card, showing them the receipts might help. Once they start to understand and are old enough, you can eventually introduce them to money.

Habit of Saving

The first interaction of your kid with money will most likely involve spending. When they see you use the money to buy things, they get the idea of spending. That is why it is essential to instil the habit of saving money as well. Nowadays, you get a lot of money apps for kids. For example, BirdFin is such an easy to use app that helps little children save money.

Saving is not just a critical money habit, it also teaches discipline and delayed gratification. In addition, it teaches goal-setting, planning and builds security. Give them a piggy bank or savings jar where they can deposit coins or cash.

Opportunities to Earn

In order to make decisions regarding money, kids need to have their own money. An allowance helps in accomplishing that. You can consider requiring them to do certain chores at home to earn this allowance.

Children will value their earned money differently than the one they receive. So, why not give them enough earning opportunities? It’ll only help in making them realize the value of money and the effort and hard work required to earn it!

Birdfin is a money management and chore app for kids, which can help parents greatly in teaching their child financial responsibility. It provides interesting clues to help your children with the right financial management concept appropriate to their age.

Team Birdfin

Good books to read,
Talking to children about importance of learning good money habits early in the age and for parent practical strategies to raise “money-wise” kids.

‘It’s a Habit, Sammy Rabbit’ by Sam X Renick by Sam X Renick, teaches children the value of learning good money habit early in their age. To find out more details please click on the link below.
It’s a Habit, Sammy Rabbit by Sam X Renick

“Smart Money Smart Kids” by Dave Ramsey and his daughter Rachel Cruze, provides an in-depth insight on strategies to raise money-smart kids in today’s world. To find out more details please click on the link below.
Smart Money Smart Kids by Dave Ramsey & Rachel Cruze

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‘Kids Managing Money’ – Why Not?

“Personally, I’m always ready to learn, although I do not always like being taught.” – Sir Winston Churchill

source

You know what, children innately love learning. Very early on, our kids begin exploring their abilities and the world around them.

They may not be thinking consciously, “Oh! I am learning,” but that is precisely what they do as they observe everything they come in contact with.

Kids tend to note the smallest observations, objects, or surprises and turn them into a learning adventure. They are curious and want to find out what, where, how, and why of everything around them.

For children, there is so much to discover and experience, mainly when we as parents can create an environment that could reflect their interests and learning styles. In fact, Kids learn best when they are engaged and having fun. Creative methods of teaching make the knowledge more relevant, leading to better retention of information in the long term.

When Learning Meets Fun: Passing On The Finance Legacy!

Learning is not just teaching children to specific standards. It is a process, a series of experiences that lead to some “aha!” moments of life.

So even while you are trying to teach your kids about the basics of money management, the trick is to find methods to make them focus on what really matters, giving them a fun lesson at hand.

Think of new ways to teach them and make them feel more enthusiastic and engaged with the number game.

Here’s a sneak peek of how to make them love finance, taking these baby steps…

  • Tasks with tempting Perks!

Show your kids how they can earn money for something they genuinely want. If your child wants to buy a new toy, show them how to make money to buy it.

Set predefined tasks. Create a to-do list of household activities for your children. Going by the age-ability bracket, you can assign different levels of tasks to them.

  • Time to Count!

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Reward your kids once they complete a project/task. Sit down together and make a budget. You can also create fun charts and show them their progress. Every time they earn, ask them to set aside an amount for savings.

Allow them to select how they want to spend, approve the choices made. Children must also understand how fulfilling it is to donate and do something for the less privileged ones. The first step to learning some social skills!

  • Video-based Learning

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The easiest way to learn something is indeed by doing. And if you want your children to learn how to complete, say a particularly tricky (but not impossible) task, give them safe access to video resource libraries to learn fast. It is undoubtedly going to be an insightful experience for them.

While you include fun as an essential part of their financial management learning, here are the two most important points you must remember:

1. Make Fun a Habit

Habit is the way of turning fun to happiness and victory. Make fun & laughter a part of your home’s environment. Then turn these to a learning culture at home to keep your kids happy, engrossed and motivated!

2. Engagement

Fun or excitement – call it what, the primary ingredient of any learning endeavour is engagement. If you do not spend time with your children encouraging and engaging them to learn through amusing ways, surely you can’t expect them to take any interest either.

The Bottom Line

By nature, children are very inquisitive. You just have to nourish your child’s curiosity and learning happens!

We as parents are responsible for creating an environment of support that allows our kids to develop their own ideas, express their feelings, take risks, make choices, and most of all, grow to be healthy, thinking individuals.

Here’s something more to help you…

BirdFin, a money management and value learning app encourage children to understand money via experiential learning approach. Based on a fresh, exciting concept, it offers experiential financial learning that keeps both kids & parents engaged, on-track and motivated.

It teaches financial responsibility through ‘like a friend’ approach, rather than imposed, boring methods of learning. Here, children get financial ideas as they engage in the role-playing game. You’ll also get interesting clues as well to help your children with the right financial management concept appropriate to their age.

Want your kid(s) to be skilled at managing their own money in the future? Stay tuned as we keep bringing some real-life fun concepts to help you teach your young ones about money matters!

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Imbibe Financial Responsibility in Your Kids: Why It’s Important & How

“Never spend your money before you have earned it.” – Thomas Jefferson

While the world today is bent on luring kids with all the latest fashion, gadgets, and treats, how can parents actually equip their children to financially survive? A question that needs some serious thought..

Source
The Importance of Money Lesson For Kids

According to the World Bank, Financial inclusion is something defined as when – “Individuals and businesses can have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.”

Financial literacy, if inculcated right from childhood, helps in achieving this financial inclusion. Because only a financially educated adult will know the actual value and benefits of the same.

Experiential Financial Learning for Kids

Understanding how to make your kids learn financial responsibility may feel daunting sometimes. Multiple programs, books are available for the same, but you might feel totally confused about which ones to choose.

Relax.

To teach your kids financial literacy, first, you must get your own financial house in order. As you acquire sound priorities for earning and using money, you’ll naturally share those values with your children. Teach them lessons through examples, natural conversations, and day-to-day life experiences.

BirdFin, as the first-ever money management and learning app, encourages children to understand money via experiential learning approach. It firmly believes that children can be taught about financial responsibility better through ‘teach like a friend’ approach, by dispensing experiential learning to kids.

Financial Education as a Life Skill: Time To Start a Conversation
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Beth Kobliner, an author and personal finance commentator, says, “ At an early age, it’s essential to explain to your child about the wise money choices. In the age group between 6-10 years, you must also keep up with activities like the saving, spending, budgeting, sharing that could engage your child in more adult financial decision-making.”

You must talk to your kids about various ways of using money. Teach them the importance of savings, investments and charity. Give them a complete, fair picture beyond just spending.

Here are some right/productive approaches to make kids learn about financial responsibility:

Throw in Challenges & Opportunities

Set realistic goals for your kids to make the process for learning to manage money.

You can assign them specific tasks such as cleaning the room, helping with the dishes and any other daily chore of their choice. Consider offering them the opportunity to take on additional jobs that go beyond the routine.

Rewards Work

Getting paid for the chores assigned inculcates motivation in children to do more. Extra work will instil good habits and give them better understanding and control over saving and spending. The perks of receiving something at the end of every chore will make learning all the more fun and exciting for them.

The Wisdom of Saving

Children need to discover the profits of delayed gratification. Suggest them to forgo spending their allowances on immediate comforts. Instead, encourage them to save for a more significant purchase.

You can speak with your kids about charitable gifts. Talk and encourage them to support a charity by keeping a part of their allowance for donations to such causes.

Budgeting is Supreme

One of the most fundamental aspects of smartly managing money is to make your kids learn how to create and maintain a budget.

Ask children to document their expenses. Assist them in developing budgets across categories such as food, shopping, books and so on. Budgeting allows children to realize and examine their expenses thereby learning to manage money better.

Being a vital life skill, money management must be introduced to our children in their early years. These first experiences of managing money shall help them to build financial discipline.

Having stated the importance of inculcating financial discipline in the early years, our next blog would be based on why the fun learning concept sets the tone to make learning for kids, more interesting. Stay tuned!

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Debit Cards in India and their eligibility!

Debit Cards are in a way, cash in one single plastics card. Debits cards are normally provided by all banks, who offer Savings and Current Bank Accounts service, which offer access to savings account electronically. Debit cards are used at ATMs to withdraw cash, pay for purchases online and offline. Apart from conducting transactions, a debit card offers you safety over physical money.

Some features of Debits Cards are – that they ensure easy access to money in a convenient and secured manner 24X7, banks provide protection and insurance to cover against fraudulent transactions, banks also provide rewards for shopping using debit cards, some banks also offer EMI facilities to ease out payments, lastly one can keep a good track of expenses through the history of transactions these cards provide online.

Technology Based: 

Contactless Debit Card: These cards use technologies such as RFID (Radio Frequency Identification) or NFC (Near Field Communication). Transactions for these happens just by a tap.
Magnetic Strip Debit Card: This card uses a magnetic strip behind, which is normally used to swipe the card.
Chip & Pin Debit Card: These cards use the chip, which in turn stores and transacts in an encrypted format. Every transaction requires a PIN (Personal Identification Number) for authentication

Usage Based: 

Pre-Paid Debit Card: These Debit cards are not linked to the Savings Bank Accounts. The money is paid in advance to the card. These cards are most commonly used for FOREX or foreign currency to use and spend overseas.
International Debit Card: These cards can be used overseas to either withdraw money or make purchases in foreign currency. There are either mark-up or transaction charges levied every time this card is used.
Virtual Debit Card: These cards as the name suggests are not physical cards, but can be accessed on internet via phone, tablet or desktops for making online payments.
Business Debit Card: These cards are only used by companies for doing transaction of their businesses.

Payment Platform Based: 

Visa Debit card & Visa Electron: VISA is an international payment platform. These cards are verified by VISA and they use the VISA payment gateway. The difference between the Debit and the Electron cards are that the later requires advance funds.
Maestro Debit Card: This is a very popular international card which requires a PIN for every transaction.
Master Debit Card: Master similar to VISA is a international payment gateway. It is very widely used debit card, which enables very smooth, convenient and secure transactions.
RuPay Debit Card: This is an indigenous Debit Card launched by NPCI (National Payment Corporation of India). This supports all kinds of transactions and payments.

Most of the banks offer Debit cards for minor accounts for 10 to 18 years old children.
Difference between Debit and Credit Card – both these cards are offered by almost all banks in India. Debit card is directly associated with the Savings Bank account and the card is used to withdraw money or use money to make purchases from the account. Whereas, a credit card comes pre-loaded with an amount or credit limit, the cards can be used to make payments, withdraw money and the same could paid later to the bank on generation of the monthly expense statement.

Article Contributed by:
Swapan Dutta

BIRDFIN

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Saving, a key pillar of children learning Money Management and becoming money- wise!

One key aspiration all parents have is for their children to become self-sufficient, money wise when they grow up, a key consideration in this respect is that the parents do not wait for their children to grow up to open a savings banks account. As per research by World Economic Forum children learn to develop Money Management Habits as early as from the age of 5 years . Children getting exposed to savings enables them to learn to manage money, makes them financially disciplined and helps them save for future from an early age.

Reserve Bank of India through a notification on 14th of May, 2014, allowed all major banks in India to offer Savings Bank Accounts to minors above the age of 10 to open and operate the accounts themselves. Since this announcement all major banks have started offering new savings bank account schemes for minors, whereas some banks tweaked their earlier offering of minor savings accounts.

However upon deciding to opening of a savings account for children, parents should explore the various features, benefits offered and restrictions on minor operated accounts, and they are:

  • KYC Requirements – First and foremost for KYC of a minor is the birth certificate this serves as the ID and age proof, then an address proof has to be provided and since it’s a minor account, parent’s identity proof are also taken into account.
  • Minimum Balance – Most of the banks have a norm for the Savings bank account holder to maintain a Minimum Average Balance (MAB) between Rs. 2000 to 5000. But some banks also offer zero balance facility
  • Withdrawal Limits – Normally the withdrawal limits is something parents can specify in the Bank Opening Form. However Banks offering Minor Savings Banks accounts, as a standard practice offer withdrawal limits anywhere between Rs. 1000 to Rs. 5000.
  • Fund Transfer – For a minor savings account banks offer standard inter-bank fund transfer facility (NEFT). Parents ideally give standing instruction to the bank of auto debit their account to transfer a fixed amount on a regular basis to the child’s account.
  • Cheque Book – Almost every bank in issue a cheque book for the minor account, children should be taught salient features of a cheque book, how to fill a cheque and withdraw money or pay to someone.
  • ATM/ Debit Card – ATM and Debit cards is an usual feature offered by all major banks to its minor account holders. While some banks issue a photo Some banks for security and safety reasons offer debit cards with a photo of the child or have the name of the child or the parent on the card.
  • Security and Safety Features – Bank usually offer security of zero liability. The child’s debit card is protected against theft or misplacement of the card, leading to an unauthorized purchase.

There are various banks that offer savings account for minor with very good benefits. To name a few and their offers:

ICICI Bank has two kinds of savings account for kids – Young Star, Smart Star, in these accounts the daily withdrawal limit of Rs. 5,000.00. Children between 1 day to 18 years are eligible for opening Young Star and Smart Star accounts.

HDFC Bank has Kids Advantage Account as a savings account for a minor up to the age of 18 years of age, with ATM withdrawal limit of Rs. 2,500.00.

State Bank of India (SBI) offers two accounts Pehla Kadam / Pehli Udaan, with withdrawal/POS limit of Rs. 5,000.00. While Pehla Kadam is for children of any age, and Pehli Udan is for children between the age of 10 to 18 years.

Bank of Baroda offers Gen-Next Junior account for children up to the age of 18 years.

Central Bank of India has CENT Bal Bhavishya as a savings bank account for children up to the age of 18 years.

Axis Bank has Future Stars as a savings bank account offer for children up to the age of 18 years, and this account also offers a Personal Accident Insurance cover of up to Rs. 2 lacs to the accounts holders.

Kotak Mahindra Bank offers My Junior Account with a daily withdrawal limit of Rs. 5,000.00. children below the age of 18 years are eligible to open an account.

YES Bank offers My First YES Account for children below the age of 18 years of age, with a withdrawal limit of Rs. 1000/ 2000/ 5000 based on age.

South Indian Bank offers Junior Savings Account with daily withdrawal limit of Rs. 5,000 for children between the age of 10 to 18 years.

Karur Vysya Bank has Jumbo Kids with daily withdrawal limit of Rs. 5,000 and children below the age of 12 years are eligible for to open savings bank account under this scheme.

Punjab National Bank offers Junior SF Account for children below 18 years of age with a withdrawal limit of Rs. 5,000.

Canara Bank Junior Savings Account with withdrawal limit of Rs. 5,000 for children between the age of 10 to 18 years of age.

By virtue of opening a minor account, parents get and opportunity to teach children how bank operate. The safety and security feature while withdrawing money from ATMs, or from bank using cheques, or online. The children would get to know the importance of a PIN, username, passwords, mobile OTP etc. Children should learn to check there account balances time-to-time either by using the account statement they receive or online or through an ATM. They should also be taught to maintain a budget and to make an effort to manage their expenses to save from the money they get as allowances or pocket money.

Article Contributed by:
Swapan Dutta
BIRDFIN

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