The first day of the new year is the best opportunity to give such a gift to the children so that their financial literacy can be increased. Smart pre-paid cards can be a good option for this. Fintech companies launch these smart cards in collaboration with banks. Through these cards, children can help in developing the habit of shopping in the right way. Parents can put a certain amount of money in these cards.
Using these cards, children can learn how to spend wisely and save money. This card is made for children below 18 years and works on the principle of pocket money. If you look at their special features, then whenever a child swipes this card, then parents get information about it.
Parents can set both the cash withdrawal limit and spending limit of the card through an ATM. Apart from this, children also get interest on the savings made on this card. Apart from this, the child’s parent can also activate and deactivate the card through the app. With minimum KYC and full KYC, a parent can load Rs 10,000 and Rs 2 lakhs respectively in it per month.
Let’s have a look at a list of smart cards issued for children.
FamCardFamCard is a co-branded prepaid card issued by IDFC FIRST Bank. You can apply for this card by visiting the FamPay app and activate it from there. There are 2 types of this card. These are FamCard ME and FamCard. The one time fee of FamCard ME is Rs 299 while the one time fee of FamCard ME is Rs 99. There is no extra fee for this and no minimum balance is required.
Fyp A fintech startup named Yes Bank also offers prepaid cards for children in association with Visa. For this, you do not have to pay any fee for opening the account nor do you have to maintain a minimum balance. The child gets rewards and cashback on every transaction made through this card. On the Fyp app, the child also gets to learn financial skills through contact videos, quizzes etc.
likewise Junio ने RBL Bank has entered into an agreement with Through this smart card, children can make both physical and online purchases. For this, a virtual card is issued immediately after completing the KYC process. For which no fee is charged. Whereas the physical card costs Rs 99. In this card, 2 percent cashback is available on loading money through UPI. Whenever your child swipes this card at a nearby shop, he/she gets 3% cashback.
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Pencilton, RuPay debit card Together with this, we have come up with a smartcard named PencilCard, through which both online and physical purchases can be made. Through this card, children and students of adolescent age can learn the qualities of money management along with managing their expenses. Pencilton has tied up with RBL Bank to issue this card. For Virtual PencilCard you do not have to pay any cost whereas for physical card you have to pay Rs.199.
Slonkit Is a reloadable prepaid smartcard. Which has been issued in association with DCB Bank and Visa. Through this, parents can pay monthly expenses to their children. With Slonkit, parents can instantly transfer money, budget, set transaction limits to their children.
Parents are advised to keep an eye on the features, applicable charges and rewards while choosing such smart cards for their children. While opening the account, keep in mind the reviews of children and parents related to these apps. Do not load too much amount in the card. When this happens, the child can spend more without thinking. Parents should keep a regular watch on the expenditure of the child and keep them aware about the importance of budget.
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