Looking for a cashback site with a difference? Well, instead of keeping the money earned to yourself, it can be paid into your child’s (or a friend’s child) bank account. But, take a look at this KidStart review to see why there may be better options.
How much do you have tucked away for a rainy day? The worrying fact is, two-fifths of the working-age population has less than £100 in savings. It’s a scary thought, but not completely unexpected. We live in an age where you can more or less get anything you want on credit, which has taken away a major incentive for saving. I have certainly been guilty of it in the past and only recently have I started saving properly.
But, as a nation, how do we get people back into the saving habit? One great option is to encourage our children to start as soon as they can.
I was lucky enough to receive a savings bonus from the government for my oldest 2, which gave a really good kickstart to their accounts. However, this was scrapped by the time my youngest was born and so I have found it tougher to save for her.
However, a company called KidStart has come to our rescue. Taken from their website:
KidStart is a free shopping club for parents, grandparents, family and friends. Once registered, a percentage of what you spend online at hundreds of well-known retailers (and for some what you spend in store) will be collected and put by us into your child’s or children’s savings account.
KidStart is a British company based in London. They were incorporated in 2005.
How does KidStart work?
For those of you familiar with TopCashback and Quidco, earning works in exactly the same way. Log in to your KidStart account, find the retailer you want to shop at, click the link and make a purchase as usual. Your cashback will then be added to your account.
You can even register your debit or credit card. That means if you decide to buy something in-store (just like the 1990’s) from a participating retailer, use your stored card and cashback will automatically be added to your KidStart account.
And this child doesn’t have to be yours, it could be a relative’s or friend’s. In fact, the child doesn’t even have to be born yet. You can start collecting cashback now and decide at a later date who you will be donating the money to.
Does KidStart cost?
No, it’s completely free to join and use.
How do you withdraw money?
Any money you earn is paid into your ‘Kiddybank’. This is then distributed between any children listed on your account. You can have the money distributed evenly, or if you have favourite, you can pay it all to them.
Money can only be withdrawn into a child’s savings account. This is done automatically, once your child has £10 in their Kiddybank and is done at the beginning of the month.
You can link any Child Trust Fund account, savings accounts that accept electronic cash payments and most JISAs.
How does it compare to TopCashback and Quidco?
The cashback rates offered by KidStart are slightly lower than TopCashback and Quidco. KidStart did use to have one big advantage – it offered Amazon cashback on everything. However, that changed in February 2020 and cashback could only be earned in specific categories.
It’s still worth keeping an eye on your KidStart account though. There are often promotions that offer extra cashback and some of the most popular retailers.
There is a generous referral program. Get your friends and family to sign up and once they reach £5, you receive £5.
Which other retailers are included?
Argos, B&Q, ASOS, GAP, Game, eBay, Sky, and Mothercare are just a few that are included. In fact, they have over 1500 stores to choose from.
KidStart has also introduced a child’s savings account option. This is a Junior ISA which you can contribute regularly into. You can split the savings between a cash and a shares fund.
There are charged associated with this kind of account though, so you need to be sure it’s right for you.
KidStart also offers a referral scheme. Recommend your friends and when they reach £5, you earn £5 too.
My KidStart review conclusion
Although this is an easy way to help contribute to your kid’s saving, this was a much better site before the change in cashback at Amazon.
However, you would be better off shopping through one of the other main cashback sites as they pay more, and transferring the cash earned into your child’s account.Sign up to KidStart >>
And if this KidStart review tempts you to earn more as you shop, take a look at these cashback credit cards.