Best cards for your children

By Mary Sam
23 March 2021 . 3 min read

Financial skills are of highest importance for young people because it equips them with the required knowledge and skills to manage their finances effectively. Without that knowledge, their future decisions with respect to savings and investments would lack a strong foundation.

If you wish to help your children confidently enter the world of money, then giving them a card instead of cash would be a great decision. If that’s the case, then you will have a couple of choices to start with, each of which has advantages and disadvantages. First, let’s find out what available options you have;

  • Current bank accounts for young person along with a debit card,
  • Challenger banks junior accounts, like Starling Kite, Monzo Junior and Revolut Junior, and
  • Pocket money apps like Gohenry and Rooster Money

To help you decide which of these options are the best for you and your child, I am going to highlight their main differences. Please note that to make your decision-making easier, I will not go through every small detail.

Security

Bank accounts

The safest one to keep your money in is definitely a bank account as your funds are protected by Financial Services Compensation Scheme protection up to £85,000.

Challenger Bank accounts

Among challenger banks, unlike Revolut (which has recently applied for a UK banking license), Starling and Monzo both have banking licenses meaning that your money is covered by FSCS like high street bank account. Monzo Junior, however, is for over-16s at which age your child may want to open a high street bank account.

Pocket money apps

Although there are safeguards, these platforms are not providing the security of FSCS protection like a bank account.

Interest on deposits

Bank accounts

Depending on which bank account you choose, you can earn interest on your deposit through these accounts

Challenger Bank accounts

There is no interest to earn through Starling Kite. Please note that your child would not have an actual account! It is a like a separate card for your own account.

Pocket money apps

There is no interest paid!

Monitor child’s spending

Let’s don’t get it wrong! To this date there is not any platform on the market to enable you to see what your child buys. However, you can see where and how much they are spending their pocket money. For instance, £10 at Tesco, £50 at John Lewis, £30 at Argos, etc.

Bank Accounts

If you get your child a bank account, you are not able to see on what the funds are being spent unless they tell you.

Challenger bank accounts

Starling Kite let’s you see what your child is buying by sending you real-time notifications.

Pocket money apps

Pocket money apps also enable you to monitor spending.

Spending controls

Bank accounts

You cannot set any spending limits on the child’s account

Challenger bank accounts

You can block online and in-store purchases as well as ATM withdrawals

Pocket money apps

Beware when these apps claim that they give you full control over your children’s spending! You can only block online and in-store purchases as well as ATM withdrawals similar to Starling Kite account.

Dedicated mobile app

Bank accounts

Your children can use mobile banking like the one you have

Challenger bank accounts

Starling Kite does not have any mobile app for your child. It’s actually you who can see what’s going on. This is one of the main disadvantages of this account.

Pocket money apps

These platforms offer dedicated mobile apps for parents as well as children.

Cost

Bank accounts

Bank accounts for young people are totally free

Challenger bank accounts

You need to pay £2 per month in order to get a Starling Kite account for your child. This price is for every issued card, so if you have 2 kids and want both have their own card, then you will pay £4 per month.

Pocket money apps

The cheapest platform costs you £1.99 per month, Gohenry offers an account for £2.99 per month and the rest are something in between. But the monthly fee is not the only fee you are to pay! They normally charge you for loading your child’s card and withdrawing cash. Now you need to think whether what they give you is really worth paying for?

Final word

What would you choose if high street banks like Barclays or Lloyds give you monitoring and spending control options? This is exactly what YounGo Money does!

Open an account for your child at one of the major UK’s high street banks (like Barclays or Lloyds – we tell you which one very soon), download and install YounGo Money app on both your phone and your child’s, then YounGo Money provides you with highly sophisticated control options and full control over their spending. What could be better than this?

Visit YounGoMoney.com to find out more or Sign up now to get an account for only 99p (no payment or bank detail required!)