Budgeting can be difficult enough for all of us, but it is a skill best learned young. If our children find their pocket money not stretching as far as they’d like, do they know how to manage it? What’s more, with a higher and higher percentage of all teens’ spending happening online, how do parents empower their children to learn great money skills in a totally different spending environment to the one in which they grew up? Let alone providing them with a safe spending solution to use online and in shops.
That’s where goHenry comes in. goHenry is the simple, safe and fun way for young people to learn about managing money in the modern world. The solution includes a cash card for children with parental controls combined with apps that focus on helping children earn, save and spend responsibly whilst making it really easy for parents to manage their children’s pocket money and allowances.
This is how goHenry works: there’s an account for the parent and a linked account for each child, all managed online or through the goHenry iOS and Android apps. Each child gets their very own goHenry card but it’s not a credit or debit card, it’s a Cash Card with rules and spending limits set by the parent. With easy-to-use, graphical educational formats, children can always see how much they have to spend, and more importantly, how their earning and saving relates to their spending – many parents are noticing that because of this their children are turning from super-spenders to savvy-savers. Parents set automatic weekly pocket money payments and tasks to help their children earn extra, make one-off instant money transfers, block the card without a phone call, decide how much can be spent and where the card can be used, and receive real-time notifications on their children’s transactions. Children can set wish lists, create savings goals and get real time balances on their transactions. The goHenry card can be used anywhere Visa is accepted, but only within the rules set by the parent. And because only the money on the card can be spent, there’s no danger of debt or overdraft.
Parents love goHenry because it makes managing their children’s pocket money really easy and turns family money management into a very positive experience. And for their children they are giving them independence and freedom to manage their own money, but under their guidance whilst helping them develop good money habits for life. Many parents are finding that because it allows their children to learn about money by doing it for themselves they are learning really practical money lessons and developing the right kind of money habits.
As children go back to school at the start of 2014 it’s a great time to consider teaching them how to create and stick to a monthly budget and put some aside for a rainy day.
Here are our top tips to help them if they’re feeling the pinch, all of which are really easy to implement using goHenry’s unique solution:
1. Know how much they have
Get your teen to tally up how much pocket money they have. This will give them an idea of the amount of money that they have to work with for the month. This can be done easily using goHenry, as all their saving and spending data is displayed in a really simple and visual way. Remind your teen that they should only account for money they are certain to receive. Counting on money that may or may not come in is a risky strategy and one they should avoid.
2. Calculate ‘fixed’ costs
What are their fixed costs for the month? Anything along the lines of lunches and travel expenses are a fixed cost. Make sure teens account for these expenses first, before spending on less important items like fast food and cinema tickets.
3. Review their spending
Have your teen look back on what they spent their money on during the previous month. Reviewing spending can be a great aid to seeing where their money is going. Work with your teen to show them patterns in their spending. This way they can better understand their finances in order to create a solid budget they can stick to for the next month.
4. Making changes & Impulse spending
Did you notice any habits that are causing them to break their budget? If so, it’s time to make some changes. Help your teen to get into the habit of making short and long-term savings goals before they go shopping to reduce impulse spending. Also encourage them to shop around before buying. They can research the best deals and compare prices online. Have them also think about areas they could cut back on in order to save more each month.
goHenry is perfect for parents with children from 8 upwards. Try goHenry today. Visit www.gohenry.co.uk to get started.
NB – goHenry is currently only available to residents of the UK. Contributed by: goHenry