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Commentary: Children may develop a careless attitude towards money, as more transactions go cashless

DIGITAL MONEY IS FINITE

A Cambridge University study suggests, children develop many lifelong money habits by the age of seven.

Could children develop a careless and blasé attitude towards money? How do we teach them that digital money is nonetheless finite and real?

One way is to empower them to manage money digitally starting with their own bank account, and involve them in deposits, statement updates and withdrawals.

We should also teach them what happens when they tap “pay”, how it affects their bank account balance, where this money came from in the first place, and the time and labour it costs to make products that they purchase with it. As they grow older, let’s extend this education to credit, debt and scams.

A more engaging way to bring these lessons home for our digitally native children is to wield the very same power of technology, apps and gamification.

Financial literacy apps such as Bankaroo and FamZoo are designed to teach children to track earnings, savings and spending, and learn to budget. They also allow parents to offer monetary rewards for chores, incentivise savings with interest, and teach kids about the effect of compound interest.

Once a child understands the basics of digital banking and transactions, you can also empower them to use some of their allowance digitally via pre-paid cards or debit cards linked to limited funds that function as a guardrail.

Commentary: Children may develop a careless attitude towards money, as more transactions go cashless Source link Commentary: Children may develop a careless attitude towards money, as more transactions go cashless

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