FAMZOO DEBIT CARD
ATM LIMIT: NONE
ATM FEE: FREE
ENTERPRISE OPTION: N/A
APP: iOS & Android
CUSTOMER SUPPORT: Email, Telephone or Live Chat
MONTHLY FEE: YES
LOADING OPTIONS: Bank transfer, Debit Card , Direct Debit
CARD DELIVERY CHARGE: Free
- What is FamZoo?
- How Does FamZoo Work?
- Key Features of FamZoo
- Is FamZoo Safe and Secure?
- How Much Does FamZoo Cost?
- The FamZoo App
- Advantages of FamZoo
- Disadvantages of Famzoo
What is FamZoo?
FamZoo is an online virtual family bank designed to help children boost their money management skills. It can be used by parents and children and aims to teach kids all about managing money wisely. The service shows children how to earn, save and spend money sensibly. The service was first launched by Bill Dwight in the mid-2000s. One of the original purposes of FamZoo was to help Dwight’s own children understand the importance of managing money wisely. When families use the service, parents take on the role of bankers, with their children acting as customers.
How Does FamZoo Work?
IOUs and prepaid cards give children access to their accounts. Parents and their children can view account activity on the shared dashboard. Parents can set allowances via the service and can reward kids for carrying out certain duties such as carrying out household chores. They can also withhold money so kids can save cash for a rainy day or give it to charity. The facility also enables parents to add interest to savings, create penalties for bad behaviour and offer loans. FamZoo is designed to help kids get to grips with banking as well as your values and attitudes towards money.
With IOU accounts, parents can track the funds they are holding for their children. An IOU account tells you how much money is “owed” to your children. You can also set up IOUs for cash owed to you by your children. You can also set up expense sharing with IOUs.
Prepaid accounts do have some similarities with IOU accounts. However, with the cards, kids can spend money and record where they spent it. This means you will be able to see exactly what your children are spending their money on. The pre-paid cards are only available in the UK, but families based elsewhere can still use IOU accounts to track money sent between parents and children.
Key Features of FamZoo
FamZoo comes with a host of useful features for kids and their parents. Money can easily be transferred from parents to their children’s cards, and setting up automatic recurring transfers is also simple. This is ideal for parents that wish to provide their children with an allowance. Activity alerts send out notifications about card activity and balances, and cards can be locked and unlocked at any time. Requests for money can also be automated and tracked, with approvals being granted by text message. Parents can also schedule chores and tasks linked to penalties and rewards. Multiple accounts can be set up for different purposes, such as chore payments and allowances. FamZoo also allows you to set up savings goals, make savings projections and track progress. Automatic debits can also be scheduled so kids can cover their share of family expenses. You can also add interest to loans to show kids that borrowing is rarely free.
How Much Does FamZoo Cost?
FamZoo costs families $5.99 each month, though a free trial is available. However, you can cut the cost to $2.50 a year by paying in advance.
The FamZoo App
The FamZoo app can be downloaded from the Apple and Google Play stores. Once the app has been downloaded to a smartphone or tablet, families can manage their spending and saving, charity donations, chores, allowances, loans, budgets and goals.
The app has generated glowing reviews and allows parents to approve chores before their kids are paid. Children can log in at any time to see their balance and see which chores they need to complete to earn more cash.
Is FamZoo Safe and Secure?
FamZoo prepaid cards can be locked at any point if they are lost or stolen. Parents can also lock the cards if they are worried about their child’s spending. Funds are stored in FDIC insured financial accounts. With prepaid card accounts, information is stored with TransCard. Children aged under 12 cannot have their own prepaid cards, though it is possible for them to use cards in their parents’ names. No real money is at risk when you use IOU accounts.
Advantages of FamZoo
FamZoo has frequently been complimented for the way it teaches children about the value of money. Even when prepaid cards are not involved, FamZoo can educate kids about the impact of unnecessary spending whilst making them feel more rewarded for carrying out household chores and other duties. This is very effective in helping them appreciate the importance of hard work. The service is also noted for its intuitive user experience, with most families getting to grips with it right away. The service can also be customised with ease. Tailor FamZoo to your own specific needs and requirements to help your children appreciate your financial values and expectations.
Disadvantages of FamZoo
The prepaid cards are only available in the US, which means families elsewhere are only able to use IOU accounts which don’t involve real money but do help you keep track of cash sent to and from your children. Although the money fee is modest, some families on tight budgets may struggle to cover it when budgets are tight. Some people may find the wealth of features confusing, so it’s best to start using the most basic facilities first whilst you’re getting to grips with the service.
FamZoo turns money management into a game, which can make learning about managing cash much more fun. If you have struggled to get your children to understand the value of money verbally, FamZoo may well be the solution. The service emphasises the relationship between chores and rewards whilst introducing your children to the dangers of borrowing. The sooner children learn about efficient money management, the better, and FamZoo can help them learn skills that will benefit them for the rest of their lives. Various free services on the market can also help your children sharpen up their money management abilities, but these don’t tend to offer the plethora of features built into FamZoo. Nonetheless, it would be great to see the prepaid cards made available outside of the US.