The world is increasingly going down the cashless route. Debit cards, bank transfers, Paypal, Bitcoin.
And now e-wallets, which have recently become a popular platform of virtual payment in Malaysia.
What Is An E-Wallet?
An e-wallet is a virtual payment platform that usually comes in the form of a smartphone application.
Shops that offer e-wallet payments display their QR codes for customers to scan and transfer money to without using physical money.
It is used for everything from food delivery services to grocery shopping to paying bills.
E-wallet payments are fast, secure, convenient and involves absolutely no sur-charges.
But while cashless transactions have become the norm for adults, should that also be the case for children as well?
After all, why shouldn’t kids enjoy the joys and conveniences of a cash-free system?
But before you sign your little one up for their own e-wallet application, here are some points you may want to consider.
Pros of E-Wallets for Kids
Convenience
One of the more obvious advantages of an e-wallet is that it’s convenient.
Part of why the world is going cashless is because wallets are cumbersome and quite often, a safety hazard.
You’re constantly facing not only losing your money, but also your identity card, your bank card, etc.
With an e-wallet, you don’t need to carry large amounts of physical currency in order to make payments.
But then again, most kids rarely have more than ten or twenty ringgits on their person at one time.
So as far as convenience goes, e-wallets will probably help with all the spare change.
At the end of the day, it’s coins and not paper money that takes up precious real estate in our physical wallets.
Control
A great option for parents who want to limit their kids expenses and spending, some e-wallet apps offer parental controls.
This allows adults to decide how much money their kids have in their account at a given time.
Since parents are still the primary financial source in a child’s life, it makes sense that they’ll want to save as much as they can as a family.
With prices of goods skyrocketing in recent months, it’s important to avoid overspending.
However, it’s also important that you don’t be too strict on your kids.
After all, the reason why e-wallets are widely used is because you don’t have to rely on ATMs or banks to make deposits or withdrawals.
Tracking
Aside from controlling your child’s spending, some parents may also want to track what exactly their kids spend their money on.
You’ll know exactly what your child buys with your money. Whether its as innocent as a pack of gum, or as worrisome as a pack of beer.
This can also be an opportunity for parents to teach their kids valuable financial lessons like saving, budgeting and tracking expenses. After all, they will be doing quite a lot of that once they’re adults themselves.
For instance, you can set goals for your kids’ e-wallet use. Spend less than 100 ringgit per month and get an extra 50 ringgit the next month, things like that.
Cons of E-Wallets for Kids
Dependency
One of the downsides of an e-wallet is that unfortunately everything is done on a smartphone. Which may not be the best option in certain situations or emergencies.
While having a centralised payment system definitely saves you time (and space), it does, however, introduce some risks.
A smartphone is portable, versatile and compact.
But that also means that it’s easier to lose, misplace or get stolen. Anyone who owns a smart device knows this.
For instance, if your child goes to eat out with a friend at a restaurant and they forget to bring both their wallet and their phone, they won’t be able to pay.
Same thing if they do bring their phone but it’s dead because they forgot to charge it.
It’s true that many people still carry their wallets with them even if they use an e-wallet service.
But for those who don’t, it may pose some problems.
Accessibility
Another problem with e-wallets that adults face just as much as children do is the fact that not all establishments and businesses may accept e-wallet payments.
As much as we’d like to think that Malaysia is ahead of its time, there are still places that may prefer cash.
Some small and local shops may still be operating on physical money instead of virtual transactions.
So, chances are your child may still need to carry around a few ringgits on their person.
Another issue related to accessibility is the fact that even if your kids don’t carry cash around anymore, they still need to bring their wallets. Things like identity cards, bank cards and metro cards are still unfortunately not available in virtual form.
And barring any life or death emergencies, identity cards are also important if your children need to prove to authorities that they are not foreigners. This might sound silly but it can happen.
Security
While you don’t have to worry that much about the safety of your online transactions, other security problems do arise when e-wallets come into play.
For instance, what if your child’s phone gets stolen?
Or what if their details get leaked? Cybercriminals can use that information to steal your deposit.
It doesn’t take much to hack into a stolen phone these days, even if it is password protected.
So, if your child’s e-wallet account is filled up, then the thief will likely have a field day.
Depending on how well you’ve taught your kids, some of them may be extra vigilant about keeping their phones safe. Others may not.
So, if you’re the kind of parent who may have a tendency to spoil their child, you should still be careful about putting too much in their e-wallet accounts.
E-Wallets: Yay or Nay?
E-wallets can be bother a blessing and a challenge.
But at the end of the day, they offer many benefits and advantages that physical money simply do not.
However, just because your kids may be using their phones to pay for things now, it doesn’t mean they have to leave their wallets at home.
After all, there are some things that a virtual wallet simply can’t replace.
You may still be grappling with the idea of managing your kids’ finances online.
But children are so tech-savvy these days. Sometimes surpassing their parents in their knowledge of gadgets and electronic devices.
Chances are they themselves may have broached the topic of e-wallets to you.
So, give it a chance.
After all, it’s not like e-wallets are based off a lifetime subscription.
If you find that it’s too much of a hassle to maintain, you can always go back to traditional payments.
But who knows, you and your kids may just end up enjoying the conveniences of an e-wallet so much that you simply can’t imagine going back to life without one.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered as medical advice from Motherhood. For any health-related concerns, it is advisable to consult with a qualified healthcare professional or medical practitioner.
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