The Financial Consumer Agency of Canada (FCAC) recently released the federal government’s 5-year plan to improve financial literacy for Canadians. The plan includes creating financial literacy and wellness for all ages, as well as, support for increased digital access and literacy. Teaching your youth about financial literacy is essential to help prepare them for long-term financial health.
How do you know the right time for your youth to gain some financial responsibility? You may be giving your teen your card on occasion. But when can they have their own? When is the right time for your teen to get a prepaid Mastercard®? Below are a few telltale signs to be on the lookout for that can indicate they’re ready.
My Teen Keeps Asking for My Credit Card
This is the top sign that your teen is ready for more financial responsibility. If they are always asking you for your credit card on the weekends, it is time. If they are not asking for your card, but asking for, or needing cash, a prepaid Mastercard® for your teen may be the solution.
You might also be running into the problem of paying for things for your teen with their earned money. This can be a tracking nightmare. Having their own prepaid Mastercard® can eliminate the problem of you not having your own card when you need it. It also gives them new financial responsibilities.
Your youth will start understanding the need to save, add money, and budget spending. Now that the Aura prepaid Mastercard® is available to youth between the age of 13 to the provincial legal age of majority, it can also be helpful for them to start getting into greater financial responsibility.
My Teen Needs an Account to Save the Money They Earn
Teens are getting an allowance earlier than ever before. In fact, a wealth management expert recommended teens begin getting an allowance as early as five years old. If your teen is already earning money by doing tasks at home or earning money on their own, they are likely ready for a prepaid Mastercard®.
The reason your teen may be ready is that they need to understand the value of saving that hard-earned money. This can give them excellent spending habits. There is even a tech element too. For instance, Aura’s prepaid Mastercard® is tethered to a financial wellness app.
The financial app and prepaid Mastercard® for teens provides a digital card for youth during a global pandemic that allows them to track the allowance they earn, set savings goals, track their spending and begin their journey toward good money management.
My Teen May Be Spending Too Much Money
This is a big reason why parents set their teens up with a prepaid Mastercard® and financial education app. Having their own card can bring saving money and spending too much into perspective pretty fast. How? The balance is not endless and they only have the money they load to spend.
Having a prepaid Mastercard® also eliminates overspending (not to mention the safety it can provide for your teens). One shocking example is a young teen that spent over $16,000 on iPad video game in-app purchases. With a prepaid Mastercard®, this can’t happen. Your youth will learn quickly that saving money is ideal in order to buy what they want.
My Teen Is Ready to Buy Things Without Parental Supervision
This is a sign that your teen is ready for their own prepaid Mastercard®. Part of the independence and new responsibilities of a teenager comes with personal spending. Yes, every teen is different. However, giving teens the ability to strive and/or make money mistakes early on is critical. It serves as a learning experience. The good news for parents of teens is that you can also monitor your teen’s saving and spending via a financial education mobile app and prepaid Mastercard®.
My Teen Already Seems Financially Savvy, and I Want to Offer Support
Last, but certainly not least, your teen is ready for a prepaid Mastercard® if they are already making financially savvy decisions. This simply means that your teen is already thinking about money management, saving allowance, or any money earned, often to make a big purchase.
This is a telltale sign that your youth is ready for more financial responsibility. Let them practice more saving and great spending habits with their own card and mobile app.
Is My Teen Ready for a Prepaid Debit Card?
In most cases, your teen is ready for a prepaid card. However, it is important to pair that card with a financial wellness app. This financial wellness mobile app can help them track and save better. It also gives parents the ability to track and monitor spending and saving with their teens.
Set your teen up for financial success. The more they learn now, the better financial habits they have down the road. Sign up for an Aura Loyalty Teen prepaid Mastercard® now.