We came up with an initial concept that we hoped would serve everyone's interest. The parents transfer money automatically into the child's account on a regular basis, an allowance. In addition to this money, the parents also supply a line of credit, a buffer.
The child spends money using their Bank of Tomorrow credit card. To the child it seems like a credit card, but in reality they can only spend as much as is in their account plus the buffer amount. At the end of each week children are expected to get online and reconcile their "bills." If they overspent they will incur penalties and if they save they will enjoy rewards. The punishment and reward structure is customizable by the parents.
In refining our design, we realized the importance of the card itself. For a child with a credit card to be taken seriously, we wanted the card to look personalized to a child, but also have a reputable logo. So that the child is taken seriously, and for security reasons, the Bank of Tomorrow card will have a photo of the child. This prevents bullying and protects kids from some of the consequence of losing the card.
If kids need cash they can always print out a Bank of Tomorrow check to cash with their parents. During holidays, when relatives give gifts, parents can turn the tables and create a check for the kid to deposit at the Bank of Tomorrow website.