From Pocket Money to Tap and Pay – How Personal Finance Models Have Evolved for Kids this Year

From the third decade of the 21st century, we’re standing 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 figure out that the transformation of many things that we interact with will undergo a shift. Many things that are secondary today will become the new normal tomorrow. The natives of the digital age will be the ones using an entirely digitized monetary arrangement. Hence, it is crucial to help them manage their money by using a technological touch.

Why e-money is a Necessity for the Digital Kids

The culture of pocket money will never get old! As children, we all wanted to cash in the opportunity to get some monthly money for those delicious treats, stylish stationery, or fancy toys. The kids of the tech age are the same. The concept will never change, but they pocket their bills by “carding” on the opportunity. As the world transitions from cash to digitized payments, the need for a digital wallet for your child may be more than a passing fancy. It may become a necessity.

Parents realize that we live in unpredictable times. Having experienced demonetization and the lockdown, going cashless for payments has been a lesson for most of us from yesteryear. We learned our lessons the hard way, but the tech age kids are still young and can understand the benefits of programmed monetary systems.

Regulating a child’s expenses every month is extremely important. With a digital wallet supplemented by an app on the smartphone, regulating the payments of a child becomes very easy. Helping children learn the virtues of saving money and avoiding overspending is one of the best teachings parents can give to their kids.

A digital wallet can be set to a limit and locked up at a number to discipline youngsters from a tender age. Payment Card Industry Data Security Standard (PCI DSS)-enabled cards, which are the tools to initiate transactions using a digital wallet, are extremely safe. Parents giving 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, child-focused payments platforms have built a digital pocket money card augmented by an app. These smart cards have features like instant transfers, monthly or weekly allowances, and real-time notifications. It gives kids the independence to control money in their 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 future generations will employ in their everyday lives. So it makes sense that we hand kids their own smart cards and seamlessly start this journey today towards financial independence and help create financially responsible adults.

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

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