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A debit card for your kid's allowance? Why not?

There are several kinds of cards that help kids figure out how to budget, save and spend.

GREENSBORO, N.C. — Millions of parents give their children an allowance. For decades it was paid in cash, but technology is giving families a new option.

"The earlier children learn about financial situations the less mistakes they'll make when they reach adulthood," said Mom Zanaya Diakite. 

Diakite got a debit card for her nine-year-old daughter. It is used as a way to hold the allowance instead of cash. 

"I had to take out the garbage, read my books, and, what was the other one?, wash the dishes," said Tamia. 

"We really wanted it to be about learning, financial literacy really understanding the fundamentals," said Tim Sheehan/Co-Founder & CEO, Greenlight.

 There are several cards that allow kids to get monetary rewards for everything from chores to good grades. The cards often have options for parents to choose and approve stores for the kids to shop in, ways to invest, and donate to charities. 

"All the features are designed around helping kids learn how to budget, how to understand the differences between wants and needs," said Dean Brauer, Co-Founder and US President, GoHenry. 

Ten-year-old London Peterson uses it to save up for things she really wants. 

"I usually tell my friends that I was saving for this or that and I'm gonna go here and buy that 'cause I saved up for it."

 Be aware, these types of kid debit cards typically have a monthly fee. These cards are different than a regular debit card which is linked to a traditional checking account. I most states, kids under the age of 18 years-old can't open their own checking account.

    

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