Should you give your child allowance via an e-wallet?
Updated: Jun 30
As e-payment transactions continue to rise, the use of e-wallets has become a more convenient option for most. It won’t be long until the next generation inherits an e-wallet dominated lifestyle.
Parents would probably feel safer to give their children’s allowance in cash. Cash is physical, which offers a more hands-on experience for your child to learn more about the responsibilities of handling money.
It is also easier to account for how much was spent and saved, to see and touch the actual amount either grow or shrink.
While cash is sure to still stick around, there’s no harm in transiting to giving your child their allowance through an e-wallet. In fact, there are three benefits to this transition:
E-wallets are a much more convenient alternative, where you’re able to transfer the needed amount from anywhere at any time.
More so than the ease of transferring, tracking is also made much easier. Through the use of an e-wallet, you’re able to track your transfers as well as your child’s expenditure.
As mentioned in an early blog post, parents could potentially teach their children how to count virtual money by teaching them whole numbers and decimal places.
This is not only helpful for you but helpful for your child too. They’re able to access a full account of where they’ve spent their money, how much they spent as well as on what item. A useful tool and visualisation to teach them about budgeting in the future.
For example, in one month, you and your child are able to revise on where their allowance is mostly spent on. You and your child can then see whether food or entertainment is the biggest area of their spending. Creating an opportunity to teach your child how to spend money more wisely in the future.
E-wallet payments are also more secure. You no longer need to worry about misplaced cash, stolen wallets or misgiven change.
Furthermore, most e-wallets make use of prepaid card technology. What this means is that the card needs to be first topped up and the user is only allowed to use the stored-money available in his card. Transactions via e-wallets are precise and tied to your child’s fingerprint, making it all the more secure.
Furthermore, your child’s e-wallet isn’t linked to a bank account. As the only access is from your own e-wallet to your child’s e-wallet, there is a uni-directional cashflow.
Transiting to an e-wallet may be bumpy at first, but an e-wallet could prove to be an innovative avenue to teach your child about finances on top of being a more practical alternative.
Let us start harnessing the benefits of cashless payments and start preparing our children for a cashless future.