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 Teaching kids about cash in a cashless society

COBA’s Sally Mackenzie shares her tips and tricks to teach kids about money

The rise of cashless payments makes it easier to pay for things, but it has also meant that parents need to come up with new ways to teach their kids about money.

With spare change and piggy banks going the way of the cheque book, savvy parents are turning to technology to pass down money management techniques.

The Customer Owned Banking Association’s Director of Strategy Sally Mackenzie says there are some great tools available through customer owned banking institutions to help parents and kids talk about money.

“Instead of a piggy bank, kids and parents can now use debit cards and apps to transfer pocket money.

“Customer owned banking institutions are developing great apps and tools to make it easier for parents to help educate their kids about the value of a dollar.

Ms Mackenzie said it’s still important for children to be able to see their savings grow.

“Being able to set a financial goal and achieve it is a vital skill for kids to learn.

“If you have a holiday planned, setting a goal with your kids to save a certain amount of spending money before you go can be a great way to teach them about the value of money and saving.

“There are plenty of youth saver accounts available at customer owned banking institutions. Some accounts even offer bonus interest payments.”

Ms Mackenzie said that, some of the age-old techniques to teach children about money remain the same.

 “It’s important to teach kids the value of money, regardless of whether you pay with card or cash.

“Talking to your kids while you do the grocery shopping can help them learn to make sensible purchasing decisions. For example, pointing out when things are on sale or explaining why you choose a larger product that is cheaper-per-unit over a smaller one.

“Another trick is to give your kids a set amount and get them to do the supermarket shopping. Older kids can be asked to plan a family meal for $10 or $15 and given the task to shop for ingredients within that budget.

“That way they get used to the idea of having to figure out how to buy what they need with the money available.”

While apps make it easier to track savings and spending, there is still no better lesson to learn than the value of a hard day’s work.

“Pocket money can help kids learn the value of a hard day’s work.

“Agreeing to a small sum for a completed chore helps kids see the connection between a job well done and money in their account.”

Ms Mackenzie said parents should visit ASIC’s MoneySmart website for more tips and tricks to help teach kids about money.

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Ashley Penny
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