In this fast-growing world, every parent wants their kids to manage money in the smartest way possible. Famzoo is a virtual bank that puts parents in charge of their own family bank. They can utilize it to pay stipends and assist their children with learning significant monetary subjects. We obviously don’t want our kids to encounter the pressure of debt and living on paychecks.
But the main question is how can we teach them to reach that level? How would we teach our children to manage cash at this advanced age? Is there a system for educating children about money management? Fortunately, there’s FamZoo for that. Yes, you heard it right.
We believe that you can easily raise kids with high knowledge in financial management by exposing them to real experience with cash at an early age. They should get a chance to commit errors and to figure out how to handle cash in the computerized world.
What’s more, they need to learn positive routines early, so when their income gets increases or their employees inquire about getting a segment of their check into a 401(k), they don’t get shocked. Their reaction should be smart and organized.
You can do all this with a single app i.e FamZoo. By using a parent account, you can get amazing features in this app, set allowance for kids, reward them for doing additional tasks, giving them marks, pay them interest on their investment funds, punish them when they don’t tackle their chores properly.
In this blog, we will tell you an amazing app through which you can teach your children about money management.
Brief Into Famzoo
Target Age: Pre-school to college
Platforms: You can use FamZoo android app on IOS as well as desktop
Cost: You get a free trial period of Two Months, -$5.99 monthly. (Discussed in detail later)
FamZoo helps parents to assist their children in making powerful money management habits. It turns guardians into bankers and acknowledges children as banking customers. The great fact about FamZoo is that it enables children to grow in an environment of online banking from a very early age. This is because the longer they experience handling money they can’t hold, the better it is.
The service was developed by Bill Dwight, to assist him and his better half handle the allowance of their children. He always needed an organized system that could erase their tension about having hard money on allowance day. This app was specially created to end the worry of how much cash each kid had and to teach children money skills from a young age.
Working Pattern of FamZoo
There are two easy ways through which you can deal with your children’s cash with FamZoo. To start with, you can create IOU accounts, where FamZoo tracks every kid’s balance that you yourself pay them. The other alternative is to access FamZoo prepaid debit card for your kids.
No cash is exchanged in the IOU account. It’s basically an advanced digital form of monitoring the cash that is entering and leaving your kid’s fund. This implies that deposit here means records of cash the kid has collected, no genuine money transfers – the account name.
As discussed above, FamZoo functions with a “family bank” which means having a virtual account for every member of the family. This implies that you are handling your IOU account while the children utilize what’s accessible in it.
For example, if your child Shalini wish to buy chocolate, then you can monitor his IOU account directly on your smartphone to check if she is having sufficient fund. If yes, then she can easily buy it with your funds. After that, you can deduct the purchase value from her IOS account.
You can also monitor cash as being added to the account via one-off stores or you can opt for automatic recurring deposits, just like a stipend/allowance. Account-holders (for example your children) can earn funds for handling various tasks.
There are additional highlights of the IOU account that you can add on:
- “Punishing” account holders for not completing the allotted chores.
- Making goals for savings.
- Automatically retaining portions of your deposits for further savings or charity.
- Providing interest on your children’s savings for teaching them about compound interest.
- Sharing expenses.
- Giving credits.
- Offering loans.
You most likely need to keep this very basic if your children are small. But, with time when they grow, teaching them important things like earning interest, loan patterns can be easily done only by FamZoo.
FamZoo Prepaid Card Feature
You would then be able to pay your children through the FamZoo application by stacking cash onto their debit cards. You don’t have to spend any extra charge for opening a prepaid card account (up to 4 children). It gets automatically incorporated the moment you take membership of FamZoo.
A prepaid card account helps children to get genuine involvement in managing cash by permitting them to use their cash with a prepaid card that performs the same as your debit card. Here, a guardian’s card acts as the main card through which they can fund using their accounts by cash or deposit. Parents can circulate cash from their cards to the children’s cards. The kids would then be able to utilize their cards to make a financial plan and use money wisely.
Advantages of FamZoo
– Pay stipend Automatically.
– Best for educating children about money management – It has numerous features in each account, that help children learn essential financial concepts that many adults don’t know yet.
– Free trial – On an IOU account, you get a two-month free trial. On a prepaid account, you get a one-month free trial.
– One fee is sufficient for your family – You don’t need to pay per kid ( up to 4 people in a family). So, it is cost-effective.
– Secure, you don’t have to link your accounts to all cards.
– It permits your kid to divide their cash into spending, investing, saving, and good cause records to rehearse planning budget abilities.
– The app also permits you to post extra tasks for pay. Your kid can view these tasks in their accounts and confirm them when finished. The application will pay them automatically for the assignment. (You can anytime eliminate the cash if the kids did not do any chores)
– You can also boost incentive funds by paying interest on cash kept in savings. A kid can see a chart in his/he record to analyze the effect of interest.
– Direct deposit into the prepaid card of FamZoo for working children
– Repayments. This is my #1 highlight of the Famzoo prepaid cards for older children. Send your kid to the supermarket where they can utilize their FamZoo card, at that point tap on the button to get instantly repaid. You can support, or ignore the demands directly from your smartphone!
– Children won’t be able to pay more than you allow them. It prevents surprise bills.
– Parents can monitor how children are utilizing their hard-earned money.
– No extra expenses or charges, buy fees, or ATM charges.
Well, there is no software or application in the entire world that has zero drawbacks. The same is with FamZoo. It has few drawbacks that can frustrate parents.
– It takes at least 2-3 working days for the guardian prepaid card to get load without any charges. In case, you urgently need money on the guardian card to send it to your kids’ cards then you could get stuck in a situation of giving load fees. Not only this, but FamZoo also monitors every payment you miss to your children while the prepaid card was blank and repays them automatically once it reloads.
– FamZoo’s application and online website could be a little better – The interface is not that simple and sometimes users get confused about where to go next. But, to sort this out, you can check FAQs and tutorials.
– There are numerous features that could be intriguing at first but these indefinite features could confuse users in figuring out which feature to use for which account. Luckily, FamZoo offers good guidance on its website, but still, it takes some time to understand everything.
– If you wish to deposit money only, then we would recommend you to use a standard financial account. it is not only less expensive (although with limited features) but also offers you access to the account with zero monthly charges.
– But then, you will not get advanced features, hence, choosing FamZoo is the best option.
– You have to give subscription fees for the services. But if the parents want to utilize FamZoo as an allowance/stipend manager then you don’t need to pay a subscription fee.
Reasons Why you Should Choose FamZoo Over a Debit Card
You must be thinking that why would a parent pay for the services of FamZoo when you could just easily purchase your kid a prepaid at a supermarket or assist him to open a financial account with a debit card for free of charge. Well, the thing is not just about fees, but it is about giving your children skills of cash management and generating a healthy environment about money.
There might be a chance to do it using a debit card also but that will not only be time-consuming but hard to understand, Here, I am going to give the best five reasons why you must utilize FamZoo instead of a debit card.
Feature of Spend-Save-Give
When trying to choose a FamZoo account that is best for you, analyze how you will use this app as an initial step. Assume that your kid wants a card is, then going for a prepaid card will be best for you. Or else, you can choose an IOU account. (You also have an option of switching later, if necessary, and the expense is similar regardless of which account you pick.) There, you can pick various customizations with FamZoo.
The most considered FamZoo account setup is the option of “Spend-Save-Give.” This gives a specific level of each deposit into three main “buckets” to save, pay and give. the default settings of FamZoo give 80% of every deposit go to spending, 10% to saving, and 10% to giving (you can change these levels and buckets anytime).
It’s extraordinary to educate your children about the worth of their hard-earned money beyond just throwing it on unwanted things. Before setting these up, FamZoo suggests talking about this thing with your kid. through this, they will get a chance of having a stand on how their funds are managed and the consequences when the percentages get changed like having less money.
Parent and Children Accounts
Both guardians and children have separate accounts with the app FamZoo. By the guardian’s side, you can control the amount of money your kid will get. By the child’s account, they can show their transactions and balance the same as a real bank account. The Famzoo setup is a brilliant primer as it makes your child feel as if they own an actual bank account. You must get your kid a FamZoo prepaid card today to give him a real experience of his own bank account and debit card.
Your Kids can’t Learn Basic Budgeting with a Debit Card
FamZoo using prepaid cards and IOU accounts, help children to categorize their money into saving, spending, giving accounts. They can check the amount available the moment they open the app. A chart is available for them that shows their available funds. It includes a pie chart that shows the limit of allowance. It doesn’t need any third-party apps or updating.
One kid can access multiple accounts in Famzoo which means that your 14-year-old son will have a spending account directly tied to an IOU account or prepaid card for saving and spending. You have the right to decide how many allocations you need to set. Not only this, you could teach your kid how to maintain a budget. You can set up a separate account and do direct deposit with FamZoo.
FamZoo Develops Good Habits such as Savings
It is difficult to teach kids savings. So, it is important to develop the habit of savings, incentives, etc from a young age so that their future could be bright.
You can set savings match and interest rates and leave the rest of the work on FamZoo. Since you can make rules in the family bank, this reduces your burden and makes the account a real bank account. The simple interface of Famzoo makes it easy for parents to set the kid’s accounts.
Transparency and Open Money Discussions
This point is the most important point for me because I believe there should be an open discussion about money management. When your kids grow older they don’t feel the importance of talking abt money and want privacy so, instilling money management and open discussion since childhood would remove any kind of hesitancy.
Costs and Pricing
FamZoo charges $5.99 monthly. You also get three options of subscription plans for less monthly rate:
- For Six Months – $25.99 ($4.33 monthly)
- For Twelve Months – $39.99 ($3.33 monthly)
- And for Twenty Four Months – $59.99 ($2.50 monthly)
After joining FamZoo, your plans get automatically renewed, however, you can also cancel them anytime. The one-time payment, don’t get renewed on its own. FamZoo informs you of the moment your term is about to end. You can then manually renew it with any plan as per your need.
We want to remind you that, FamZoo provides a free trial. You will either get free two months if you are an IOU system user or a free trial for one month if you are a FamZoo prepaid card user.
We believe that, with the FamZoo app, you can raise your kids to become money managers in this digital age. You must give money management skills to kids so that they could handle funds better in the future. So, get FamZoo today and leave all your worries behind. We have created this post to tell you about the best money manager app for your kids. Now, it’s time to conclude this informative post here, but you can write your experience and suggestions below to help others.