How to: manage your kids' summer spending

As the summer holidays kick off, how can parents help children budget their spending money?

There are a handful of apps that can help parents monitor their children's spending this summer (Rex)

Summer is here and the weather finally seems to agree. Across the country school kids are kicking back, ready for the long break and parents are working out how to afford it.

Many kids will hope for some spending money of their own and education experts suggest that this is the perfect opportunity to get your children set up with money management skills, which could put them in good stead for life. And with average weekly pocket money now at £6.55 a week, according to the Halifax Pocket Money Survey, the highest level in 9 years, there are more than a few pennies to play with.

Meanwhile, parents worried about safety have more options than ever to help their children spend. Here are some of the most helpful innovations for managing kids’ cash.

goHenry

Made in collaboration with Visa, goHenry is a prepaid card and app that gives parents control over what their children spend; while also allowing the child all the freedom of a debit card, although they can’t overspend and get into debt.

It costs parents £2.49 per month, but it allows them to choose where cash is spent – they can veto online spending or cash machines if they choose to, providing an additional layer of safety. Parents can also set a daily maximum spend to help their offspring budget effectively.

Osper

Mobile banking service Osper also offers debit cards for kids aged 8-18, which is licensed by MasterCard, and has an app that helps them understand and manage their spending. As with goHenry, parents can track the spending, allowing them to discuss choices with their child.

It costs £18 per card per year, which is £1.50 a month, and it allows friends and family to load the card with money too, making birthdays easier.

Rooster Bank

Parents and guardians of children aged 4 and up could make use of the free Rooster Bank money tracker app. Children can record their savings and the household chores they carry out to earn money. It’s available for iOS, Android or via Kindle Fire.

Although parents don’t store money in the app, which simply records what children receive and what they spend, it does allow them to ‘pause’ payment or debit the balance if their child wants to buy something or has their pocket money docked. It also allows families to set savings goals and helps them visualise how close they are getting.

Children can separate their spending money and even receive bank statements.

Use some cash

Technology is brilliant but it is important for children to learn about actual coins and notes. Loretta Jones, a primary school teacher from Warrington, explains: “We get a lot of children now who simply don’t see coins regularly because their parents use their card for everything. That means they can’t identify coins quickly, which puts them at a real disadvantage.”

Handing out small amounts of actual coins and teaching youngsters to keep it safe, ideally in a zipped pocket or purse, is also an important step on their path to financial literacy.

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