General Questions
Find answers to the most common questions about Parent.credit, how it works, and how to use it effectively as a financial education tool for your children.
What is Parent?
Parent is a financial education platform that allows parents to issue virtual credit cards to their children. It provides a hands-on way for children to learn about credit, borrowing, earning, and financial responsibility through real-world experiences.
How does the Parent system work?
The system allows parents to create virtual credit cards for their children with customizable credit limits. Children can request credit for purchases, complete tasks to earn money, and learn to manage balances and payments. Parents maintain oversight and approval rights throughout the process.
What age is appropriate for children to start using Parent?
While there's no strict age requirement, Parent recommends setting card expiry dates for 2-3 years for educational purposes. Parent is designed to teach financial literacy to children who are ready to start learning about credit, spending, and earning.
Pro Tip
Most parents find that children ages 8-10 can begin to understand basic concepts, while children 11+ can grasp more complex aspects of credit and financial responsibility.
Are the cards real credit cards?
Yes, they function as real credit cards but within a controlled environment. Each card has a unique number, expiry date, and is issued under the Parent brand. The cards have actual credit limits and balances that must be paid down, mimicking real credit card functionality.
Important Note
Although the cards function like real credit cards in the app, they can’t be used for purchases in stores or online. The parent provides the real money when approving credit requests.
How do I create a card for my child?
To create a card, log into your Parent dashboard, click ‘Add Card,’ and fill out your child’s information. You'll set up card settings including expiry date, card style, credit limit, interest rate, and payment period. Once created, login details will be sent to your child's email.
What credit limits can I set for my child?
You can set custom credit limits based on what you believe is appropriate for your child's age and financial education needs. The system allows for limits as low as $100 or customizable amounts.
Recommended Credit Limits by Age
How does the credit request process work?
When your child needs to use credit, they request a specific amount through their dashboard along with the purpose. You’ll receive the request and can approve or deny it. If approved, you provide the actual cash to your child, and the amount is added to their outstanding balance.
Credit Request Flow
- Child submits request for $25 for school supplies
- Parent receives notification
- Parent reviews and approves request
- Parent gives child $25 in cash
- $25 is added to child's balance in the app
- Child completes tasks to pay down the $25 balance
Can my child complete tasks to pay down their balance?
Yes, you can create tasks with monetary values that your child can complete to reduce their balance. After your child completes a task, you approve it, and the amount is deducted from their outstanding balance.
How do I track my child's spending and payments?
The Parent dashboard provides comprehensive tracking tools including total credit issued, outstanding balances, tasks completed, transaction history, and detailed activity logs for each child's card.
Pro Tip
Review the transaction history with your child regularly to help them understand their spending patterns and payment progress. This creates valuable teaching moments about financial responsibility.
Can I freeze or delete a card if needed?
Yes, card settings include the ability to freeze a card temporarily or delete it permanently. Freezing a card prevents new credit requests but maintains the current balance and payment requirements. Deleting a card will remove all transaction history and card data.
Is there an interest rate on the balances?
Yes, You can apply an interest rate (we recommend 2%) to help teach your child how interest accrues on credit card balances.
Example Interest Calculation
With a 2% monthly interest rate:
How can I use Parent as a teaching tool?
Parent includes a ‘Tips & Tricks’ section with resources like "Teaching Moments," "Task Value Strategies," and "Setting Appropriate Limits" to help parents use the system effectively for financial education.
Key Teaching Resources
- Teaching Moments: Opportunities for financial discussions
- Task Value Strategies: How to price tasks appropriately
- Setting Appropriate Limits: Guidelines for credit limits
- Understanding Balances: Explaining financial statements
- Completing Tasks: Building work ethic and responsibility
Can I manage multiple children's cards from one account?
Yes, the Parent dashboard allows you to create and manage cards for multiple children, each with their own credit limits, tasks, and transaction histories.
How do I help my child understand their credit usage?
Children have their own dashboard that clearly displays their credit limit, current balance, available credit, and credit usage percentage. They can also view their completed tasks and credit request history.
Teaching Opportunity
Sit with your child regularly to review their dashboard. Ask open-ended questions like "What do you notice about your spending?" or "How do you feel about your current balance?" These conversations help build lasting financial awareness and confidence.
What happens when my child makes a payment?
Children can reduce their balance either by completing assigned tasks or by selecting tasks to complete as part of a payment plan. Parents approve the tasks after completion, and the balance is reduced accordingly.