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PHILADELPHIA (CBS) – In a world that’s becoming less reliant on bills and coins, it’s no surprise parents are giving their children “cashless” allowances.
Nerd Wallet reports more and more parents are using electronic methods for their kids’ allowance – using pre-paid cards or bank account transfers.
The report says pre-paid cards offer safeguards for parents, such as limiting purchases only to certain types of stores or sending parents text alerts on account balances. While, opening a savings account and a checking account with a linked debit card can help parents give their children money when there is no cash on hand.
Experts say this new way of providing allowances can be a great tool for pre-teens and teens to learn about money management.