As our society becomes increasingly cashless, it is important for our kids to understand the concept of money in its different forms.
By giving our kids a strong understanding of money, we can build good habits around budgeting, spending and saving money that can set them up for life.
Here are a few ways you can approach this with your kids…
At the ATM
I’m sure you can remember your parents telling you that ‘money doesn’t grow on trees’ and in the same way it’s important to ensure our kids understand how these miracle machines work- it holds the money you have worked for and saved. Explain the bank is holding the money safely, and only you have the card and code to access this money.
At the supermarket and paying bills
Whether paying with cash or card at the checkout or paying a bill online, this is a great opportunity for kids to understand some of the money you work for is spent on some of the less fun things in life, like electricity and groceries.
This is also a chance to show your kids how to shop around for the best price. Get your kids to compare prices for you and pick the cheapest one. Not only is this a great way to learn about budgeting and money, but it will also help translate their math skills they learn at school into real-life situations.
When giving pocket money
When your children can see the correlation between chores and money, they will begin to understand the link of payment for labour and what’s involved in saving for a specific purchase.
We’re loving moneysmart.com.au’s tips for encouraging kids to save their pocket money.
- 50%, 40%, and 10%: Teach your kids to save 50%, spend 40% and donate 10% of their pocket money.
- Three Money Jars: Have 3 jars for saving, spending and donating. This method will allow them to see the money being put into each category and will help them understand the difference between saving and spending money.
- Budget: Why not help your child draw up a budget of how they will split up their pocket money.
- Investing: You could also consider helping your child invest their pocket money.
Our kids love their tech, so why not teach them good money habits via an app?
Allowance & Chores Bot is a great way to manage your children’s allowance. You can assign chores daily, weekly or monthly and reward your kids with an allowance. You can keep track of your child’s saving, spending, and any other deductions. Your kids will love watching their savings grow!
TrackMySpend is another great app to help keep track of your child’s spending habits. This is a free app designed by ASIC, which means there are no ads (bonus!), and allows you to input your child’s allowance and how they spend their money. The interface is not as child-friendly as Allowance & Chores Bot but is a great way to teach your kids about understanding how they spend their money.
Spriggy is a game changer! Spriggy is a prepaid card and smartphone application for 8-18-year-olds that helps parents and kids to manage money together. The app allows parents to allocate money to their kids via a prepaid card and help set savings goals. Your kids can use the prepaid card online or in store, wherever Visa is accepted. Be sure to check this one out here.
Kids’ banking accounts
MOVE Banks Everyday Saver Account is a great starting point for kids to start saving their money. Being able to see their balance increasing, and understanding the concept of interest being earned, can help them build good money habits for life.
How do you teach your kids about money? Share your tips in the comments!
This blog post is for general information purposes only and is not intended as financial or professional advice. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product or other professional advice. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article. Railways Credit Union Limited trading as MOVE Bank ABN 91 087 651 090. AFSL/ Australian Credit License number 234 536 | ABN 91 087 651