Monday, June 23, 2014

Virtual Pocket Money

No more counting out the coins and no more piggy banks – the future of pocket money is going to be online and virtual - and that future, is starting now.

Roosterbank and goHenry are just a couple of companies in the UK and US that are already offering a virtual pocket money service for parents and kids. So, how do they work?

Roosterbank operates in a completely virtual manner – parents don’t actually deposit any money, it’s more like a tally site. It works a bit like online banking, where parents and kids can keep track of the pocket money balance. What makes it different is that there’s an area where chores can be recorded, money can be kept in a ‘wallet’ and ‘savings’, plus the app encourages kids to save their money by offering rewards and prizes as their balance grows. When it comes time to spending, kids can choose to donate to one of over one thousand charities, or simply spend on themselves – all with the parents' approval built in. The app forwards on the item that your kid wishes to buy to you electronically and you then purchase on their behalf.

The UK-based goHenry steps up the virtual pocket money stakes, by equipping each kid with their own Pre Paid Visa Card that is subject to rules and conditions that parents set. Parents set up an automatic transfer of the pocket money to the card at the interval that they wish – weekly or monthly. Parents and kids keep track of the balance via mobile and web apps. This version of virtual pocket money is certainly practical and probably a great fit for the older kids that can be left a little more unsupervised with their cash. Having a Visa Pre Paid would make buying items such as e-books, music and apps online a breeze. 

Closer to home, Westpac has launched a pocket money app called Pay Pig. This iPhone only app keeps track of chores and then at the end of each week, parents are sent a ‘pay day’ request, where they can transfer the agreed pocket money amount to either a Westpac bank account, an external bank account, or they can just give their kids cash. 

Are you ready for a virtual pocket money pay day? And do you think virtual cash will be as effective as the real deal in teaching kids value and responsibility?

Source : parents[dot]nickjr[dot]com[dot]au

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