CLEVELAND — A penny saved is a penny earned. Money doesn’t grow on trees. A fool and his money are soon parted. Gregg Murset gave all those age-old lessons a digital update. The father of six and financial planner created the BusyKid app, which goes beyond cash allowances.
You pick the chores to be done and when your kids finish, money is transferred from your bank accounts to theirs. Then, the money is divvied up into three buckets: spending, saving and sharing.
Here’s a breakdown of each bucket:
Spending: Your kid gets a Visa card and you approve each transaction. Murset said, “They want some new shoes, what ever it is, you say ‘great, pull out your card and knock yourself out.’ All of a sudden, you’re making them pony up.”
Saving: Your child can invest in real stocks and it’s all organized by company logo. “All of a sudden, you have a kid who’s not only watching Netflix, but also watching the stock and understanding what’s going on,” Murset explained. BusyKid worked out a deal, so there’s no broker’s fee for kids.
Sharing: Your kid can pay it forward. There’s a list of charities that they can learn about and then, donate to worthy causes.
There is a one-time annual fee to use the app. The fee covers however many people in your family are using BusyKid.
Chore Check , Homey and OurHome are other apps to help teach kids about financial responsibility but Dr. Kate Eshleman, a pediatric psychologist at the Cleveland Clinic, said it’s important to know what your kid can handle.
Dr. Eshleman said, “if you have a child that tends to be more anxious or worried, we don’t want them to begin worrying about finances.”
She suggests watching your child and seeing how they react to responsibility before adding more to their plate.