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How To Make Kiddie Microloans With Automatic Parent Payback - Plus Interest!

So your kid wants to buy something special in a moderate price range, but doesn’t have the funds to cover it yet.

The preferred parental response? Wait until you’ve saved enough! You know, delayed gratification and all that.

But occasionally, you’re OK with floating a small short term loan. That is, as long as it’s formally tracked and repaid.

In fact, you’ll even charge a little “Bank of Mom/Dad” loan interest on top. That drives the point home that borrowing money isn’t free. It also discourages a cavalier attitude toward loans in the future.

Good learning opportunity. Good plan.



How To Set Up A Digital Envelope Budgeting System With Prepaid Cards

The envelope system is a tried and true budgeting approach for families who use cash. Here it is in a nutshell:

  1. Label a physical envelope for each household budget category.
  2. Allocate cash each pay cycle between the envelopes according to your budgeted amounts.
  3. Make payments for a spending category using only the cash remaining in the corresponding envelope.

Nice and simple.

Unfortunately, the cash envelope system is also tedious and impractical in today’s digital world.



How To Use Your Prepaid Card With PayPal

PayPal Usage Diagram

If your prepaid card has account and routing numbers that support ACH transfers (like FamZoo cards do), you can link it to PayPal just like a typical bank checking account.

Why is that useful? You can: