Pocket money can be a very powerful tool to teach your kids how to be financially savvy in the future. However, this is reliant on whether this tool is used correctly. Just giving your children money to spend how they wish can have the opposite effect and lead to them learning bad financial habits that will plague them throughout their adult lives.
The GoHenry card is a prepaid debit card designed specifically for children aged 6 to 18. It comes with a companion app that allows parents to set spending limits, track purchases, and automate allowances. This gives children a safe environment to learn about budgeting, saving, and responsible spending without the risk of overdraft fees or credit card debt.
One of the standout features is the ability for parents to set tasks and chores that children must complete to earn their allowance. This teaches the fundamental concept that money is earned through work, not simply given. Parents can also set up savings goals within the app, encouraging children to delay gratification and work toward larger purchases.
However, GoHenry is not without its drawbacks. The monthly subscription fee of £2.99 per child can add up quickly for families with multiple children. Additionally, some parents have reported issues with the app interface being occasionally buggy, and the card is not accepted everywhere due to its prepaid nature.
Overall, GoHenry represents a solid entry point into financial education for children. When used consistently and paired with ongoing conversations about money management, it can be an invaluable tool for raising financially literate adults.