Did you know that only 7% of US high schools require students to pass a basic finance test to graduate? And not only that, but the majority of parents received a grade of C or worse when it came to understanding basic finance themselves. So how can we as parents help our kids learn to manage money? BusyKid is the newest online and mobile platform for doing just that, and I’ve never been so excited to tell you about something, as I am about BusyKid!
~This is a sponsored post on behalf of BusyKid. As always, opinions are still 100% my own.~
I remember getting my first bank account and first credit card during my senior year in high school, at the same time I was working my first job. I was ready to get spending and buy whatever I wanted to buy without having to ask permission from my mom. But it wasn’t long before more credit cards came in and the debt kept growing and growing. I have since learned my lesson and paid down a lot of my debt, but I still wish I had done better from the start. My friend had a similar experience when he got his first car. He didn’t do his research into the best value for money car insurance. He should have gone to Money Expert.
It’s estimated that today, less than 10% of ALL money in the world is coins and paper. We pretty much live in a cashless society, but the fact of the matter is we’re still teaching our kids about money by using coins, paper bills, and piggy banks. Sure, that’s okay at first, but once they understand the face value of each coin and paper bill, we need to do our duty to teach them about our cashless society and what it takes to actually earn that money. I’m talking budgeting, saving, investing, and taxes, and even responsibility, accountability, and time management.
This is where BusyKid comes in. BusyKid is a new online and mobile platform that acts as your child’s first job and payroll system. You create a profile for your child, customize a chore list for them (this is their “job”), along with an allowance amount for each chore, and when they’ve finished a chore they mark it as done. When Friday roles around, it’s your child’s payday, just like for most of us adults. From there your child has money to spend how they want (with a little guidance, of course). It’s a classic, but advanced earn and be rewarded system.
We created BusyKid because our children need to start experiencing the real world earlier when it comes to the basic financial practices of earning, saving, spending, sharing and investing. As adults we don’t get rewarded with TV time, computer time, stickers, stars or ice cream. Why should we do this with our kids? Eventually, they need to learn the importance of money.
-Gregg Murset, BusyKid CEO
Let’s walk through this with a quick step by step, because I absolutely love the concept of BusyKid.
You have the ability to choose which chores you want your child to do and on what days. And if you’re not exactly sure what kinds of chores are suitable for your child’s age, don’t worry. BusyKid provides plenty of recommendations. As your child gets older, new chores will be added, but you still have the ability to customize the chore list as you go.
Each chore is also assigned an allowance amount. This can be anything you choose to be appropriate and whatever fits with your own family budget. Upon completion of the chore, your child marks it as complete and the allowance amount is added to their total allowance.
Every Friday is payday, just like some jobs in the real world. You are paying your child’s payroll and do so by linking your bank account, debit card, or credit card to BusyKid’s payroll system. On payday your child can choose to request cash, or purchase fun retailer gift cards, or invest, or even have it “direct deposited” onto theirello, real world!). Every payday you will receive a text message alert reminding you it’s payday, at which time you can approve payment or not.
Now, you can imagine there will probably be times when your child marks a chore as done, but didn’t actually do it. Obviously, you aren’t going to pay them for that undone chore. In the “activity” section you can see every chore your child has marked completed and in that same location you can disapprove any chore that wasn’t actually done. This will automatically adjust the total allowance amount.
Spending Their Money
As just mentioned, your child can choose to request cash, purchase fun retailer gift cards, invest, or even have it “direct deposited” onto their
You’re probably wondering how much BusyKid costs to use and in all honesty, it’s very affordable. It’s just $14.95 per yer, per family. And if you want to give your child a BusyKid Spend Card (rechargeable VISA debit card), there’s an additional $5 per year fee, but I love the real world experience it can give to kids, so I think it’s worth it.
And for a limited time, two kids from each family that signs up will receive a free $10 stock. BusyKid really wants children to learn how to invest so they’ve decided to give them their first experience in dealing with the stock market.
It’s never too early to teach children how to budget and effectively spend their money. My son is just 5 years old and wanted some useless toy (in my opinion) from his school’s book fair a few weeks ago. He asked his father for $5 to get it, to which is father replied he had to complete a chore to get the $5. Well, he ended up not finishing the chore and didn’t earn his $5.
Every time we go to the store my son is also asking for something, whether it be a new toy, a new shirt, or junk food. I always ask him if he has the money to buy whatever it is he’s wanting and the conversation stops there. BusyKid is the perfect platform for us to start teaching our son about earning money and the best possible ways to spend his earnings, and we’re all excited to get started!