What's the point of GoHenry?

[Namechangeforthis88]

Inspired by the another thread, I decided to get DS a GoHenry card today. I was part way through before checking the charges, I assumed it would be minimal. It's £2.99 a month. I checked what my bank offer for, a child account doesn't have any monthly charge, he'll get a debit card, I can set up a standing order for pocket money and, if I need to top it up, that's free, while GoHenry is a 50p charge for ad hoc top ups. I don't get it. The quotes on their website from people saying how GoHenry is teaching their kids to manage their money are a bit ironic, aren't they all chucking £36 a year away? Or am I missing something?

I also like that I can decide if and when they can take cash out with the Nimbl card ( no at the moment) and that I can pop on the app and change that immediately. I can also limit the amount they can spend maximum in a day, week or month. And again change that quickly on the app if I need to i.e. we were on hols and one DC wanted to buy something that was more that the £5 max limit we had set. I popped on the app, took it off and he used his card.
Obvs for older children it's maybe better to let them decide these things, but for the younger ones like our 10 & 11 year old, it helps them be sensible while learning about money.

My 9yo has a phone, yes. To text us when she gets safely to school on the days she takes herself. It has the Nimbl app and text messages. As it happens, all the other smartphone features (web browser, App Store, camera etc) are inaccessible to her, because I don’t think she’s old enough for them. It’s very common in Y5 to give a child a brick or a (often old and locked down) smartphone, for the walk to school.

I'm amazed you don't see how you are coming across on this thread ilovemasie! You seem to know better than every poster.

'And if they have a 'family' laptop why can't they be part of the 'family' bank account - which is obviously in the parents name. If they understand that X amount of money in there is theirs then why pay a fee for them to have their own card?

You think I should let a 10 and 11 year old have access to our joint bank account?? Hand over the passwords etc.? brill.
They don't have X amount of money in my bank acct. They get pocket money and for us the cards have worked well, been great value, helped them manage their pocket and birthday money, given them a sense of independence and taught them how to save on a small scale. Their 'real' savings go into an ISA.

You’re right it is expensive but works really well for us while our dc are too young for their own debit cards with their bank accounts.

They enjoy using their cards, have a real sense of ownership & have learnt a lot about budgeting, savings goals etc.

Yes we could have done this in a different / more low tech way but we can afford the charges so this works for us.

Clearly there is a market for it as it exists... but no-one has to use it if they have another way that works better for them.

Mistress I am not meaning to.
The OP was 'what is the point of Go Henry cards' and my response really is (to say it in child speak) is "I don't get it".
Because I don't. I don't see the point when there are other (free) options about there.
I certainly don't know better. Because if I did I would "get it" which I don't.

Steven I wouldn't give a child a password but surely if they were using their card to do an online purchase they would need your password to access Amazon or whatever. The parent puts in the password and discusses with the child what the figures on the screen actually mean? Wouldn't they?
Sorry Mistress if you think that's a bit know it all. As I said before.... I simply "don't get" the point of these cards.

We have rooster. It works v well

'Because I don't. I don't see the point when there are other (free) options about there.'

The only 'free' option ( banks aren't free really anyway are they??) for us is give them cash, or use our cards and keep a running total of who owes what or spent what. We've found using Nimbl better for us. That's all there is to it. When someone suggested Go Henry when our eldest was 8 I didn't see the point. But now our DC are older, going places more independently or with others, being given more money, it's become a great stop gap in between an actual piggy bank full of coins and a full bank account.

@Stevenetween

The only 'free' option ( banks aren't free really anyway are they??) for us

In what way are banks 'not free really'?

Hmm I need to do more research and think through the whole pocket money thing - mine used to get a pound a week on a Saturday morning, which they would then blow most of on sweets at the orchestra tuck shop or post office, and save up the change to spend on books (ordered through me and my card) every once in a while.

But when Covid closed everything down, there was no more orchestra and they weren’t allowed to go to the corner shop any more, so pocket money just sort of fizzled out, and every so often I’d make up for it by letting them choose half a dozen books each online. They never ask for money, or to be bought stuff, unless we are passing a book shop.

So I need to reintroduce regular pocket money and saving. I heard recently about these Go Henry cards from friends, but was shocked at the cost. Also, it all seems a bit... big brother/helicopter parent. I suppose I do subscribe to the ‘when it’s gone it’s gone’ school of thought, but accept that the world has changed and there are all sorts of pitfalls now that there didn’t used to be.

So this is a useful thread for me. It’s interesting to see the different approaches. I’m leaning towards waiting till they are 11 and just getting them a regular bank account, but I’m open to being persuaded by a sensible alternative approach.

@Ilovemaisie

But why do you need an app so badly. What's wrong with just keeping a record of what you have spent in a notebook. It would actually make it more educational to have to figure out how much money is left from £10 if you spend £3.45. The app will just tell you. How will children learn the actual value of money if it's just a figure on a screen that does the maths for them?

Well, it's much easier for my child when out and about to check his balance on his phone and know if he has enough for that meal/swimming entrance/ ice cream/hot chocolate/chips or whatever else he wants to do. I'm not sure he'd really take to wandering around town with a notebook in his back pocket! And in my mid40s I use my banking app all the time, I don't write down what I spend either. As I said, horses for courses, and for us the convenience is worth the cost.

'Steven I wouldn't give a child a password but surely if they were using their card to do an online purchase they would need your password to access Amazon or whatever. The parent puts in the password and discusses with the child what the figures on the screen actually mean? Wouldn't they?'

They don't purchase online themselves, but in the situation you're talking about I would use my account on amazon and they'd transfer the money to me from their Nimbl card to my parent account. Just like in the old days when they would give me the cash ( usually in handfuls of bloody 5, 10 and 20ps). I much prefer the new system TBH. And instead of wondering where all their money's gone they can see the transaction history and have a think about whether it was worth the spends or not...

@VenusClapTrap I'm in much the same position, my daughter who's 10 asked me about GoHenry but when we looked into it together I couldn't believe the fees. What a joke. She could see for herself how much of her pocket money she'd be wasting.

And exactly as you say, i found it very 'helicopter' - to me the whole point of them having their own cards/accounts is to manage their own money. She is very happy with the idea of a real bank account with debit card for her next birthday when she turns 11. (She has a building society account but that's for long-term savings.)

In practice we do a mixture of pocket money coins that they keep in money boxes, gifts from family that go into our bank accounts and we keep track of them, and me buying them little bits here and there (magazines, small toys et cetera).

Until kids are secondary school age they are not really in a position to be spending money freely on their own, and at the moment it's hard for anyone to spend money in shops (and not much fun).

GoHenry works well for my 12-yr old grandson and mum is fine with it being the cost of a coffee a month. I'm sure once the banks start treating us like valued customers again (instead of PITA) she'll go in and get a debit card account for him but there's no rush if it works, is there?

The fee comes out of the parents account not the child’s account.
Reading the thread about the son spending £6k on their Xbox made me glad it’s my sons gohenry card linked to his Nintendo online so he can only spend his limited small amounts with me getting notifications and not go crazy with my bank card!

@Andwhat Yes, but why would I want to pay for something that my kids can have not just for free, but actually earn interest on?

www.moneysupermarket.com/current-accounts/childrens-current-account-guide/
What are the benefits of a children’s current account?
The benefits of a children’s current account include:

No overdraft facility: So your child can only spend what they have in their account
Daily withdrawal limit: A hard limit to how much cash they can withdraw each day
Money management: Online, mobile and telephone banking allow your child to check their balance, view their statements and send money to their savings account (where applicable). Children aged 11 and 12 may need permission from their parent or guardian to access mobile banking
Text and email alerts: Children’s bank accounts can also come with text and email alerts to let your child know if a payment has been missed, if they need to pay money in to cover a payment or if their balance has gone below zero (this may happen if a payment goes out and there are insufficient funds in the account – there won’t be a charge)
Earn interest: Money in children’s bank accounts will usually earn a small amount of interest
Open an account with £1: Some providers only need you to pay in £1 to open an account for your child
No monthly fees: Children’s current accounts don’t tend to charge monthly fees
No automatic debit card: A parent or guardian will normally need to give permission for their child to have a debit card (provided they’re under 16)

Seoirnbru but if your child is old enough to have a phone with an app and be out independently surely they would be old enough for a normal childrens bank account with debit card.
I was talking more about 6/7 year old kids.
Sorry all... still don't get it.

My dd(11) works well with the gohenry account. She can keep track on her app plus I like the ability to set limits and see what is being bought particularly as she moves schools and friends. The task facility is great as well - she can see instantly what I am willing to pay for this week and decide if she wants to pick any of it up (not regular
kind she is expected to do - things I'd rather not do or would normally pay for someone else to do). No pots of money hanging around and easy to transfer to rather than relatives sending money in the post for birthdays etc. I never incur a top
Up fee that is easy to avoid if you are organised - so at 2.99 it is worth it for us. On a % interest - if she had enough to make that even vaguely interesting it would be in a junior ISA!

@AndWhat

The fee comes out of the parents account not the child’s account. Reading the thread about the son spending £6k on their Xbox made me glad it’s my sons gohenry card linked to his Nintendo online so he can only spend his limited small amounts with me getting notifications and not go crazy with my bank card!

The sensible thing here is simply not to save the card.

Getting a bank account for ds1 drive me nuts.
First Direct don't do children's accounts. Tried HSBC but got conflicting advice on what paperwork I needed and they wouldn't accept standard birth certificate as proof I was his mother because our surnames are different so I had to dig out his full bc from the attic.
RBS required a letter addressed to ds1 showing proof of address which isn't easy for a child not old enough to work. Think I ended up getting school to send him a letter.
When it was time to get DS2 an account I snapped up GoHenry with relief and sucked up the costs.
Plus it got him doing some chores for pocket money as my parenting skills failed to get either of them to do chores just because.
Sometimes you go with what's easy even if it costs a bit more. This was a few years back so less alternatives available.

'@Andwhat Yes, but why would I want to pay for something that my kids can have not just for free, but actually earn interest on?

www.moneysupermarket.com/current-accounts/childrens-current-account-guide/
What are the benefits of a children’s current account?
The benefits of a children’s current account include:'

the cards, I think, are aimed at the kids old enough to be given regular money and want some independence and too young to have a bank account and debit card.

When my two are old enough I would imagine we'll just stop using the Nimbl card.

My DS is almost 11 but the bank acct I plan on getting for him cannot be done online for under 13's...

@Stevenetween

My DS is almost 11 but the bank acct I plan on getting for him cannot be done online for under 13's...

But can be done in branch?

It’s great for my 7 year old. He gets £4 a week pocket money which has really mounted up during lockdowns and he’s now quite precious about spending any as he’s been able to see the accumulation week-on-week.

I like him being able to take his debit card out when we’re out and about, and telling him he’s welcome to buy it himself if he asks to get something. Most times he doesn’t want it enough to pay for it himself. It’s also been useful showing him how to pay for things using his card in stores. And at Christmas I made him buy presents for his father’s family using his own pocket money. Worth paying for as at 7 he can’t get a high street bank debit card.

And his father is also able to transfer money that he gets from relatives for Birthdays, Christmas etc, knowing it’s going straight to his account and not mine.