Using Tech to Teach Your Children About Money
Guest Author: Ali Bygraves
American youngsters pocketed an annual allowance of around $471 in 2018. Children aged four to 14 received, on average, $9.06 per week last year, a 3.7 percent rise from the year before. It's estimated that 69 percent of parents give their children a regular allowance. But while they may be generous with their money, are parents giving their kids the right information and skills to manage their money as they get older? It's important that children understand the value of money from an early age. Equipping them with the right knowledge and tools during childhood will help them make the best financial decisions when they are adults, whether it's saving for a car, buying their first home or taking out a credit card.
Using Tech to Teach Financial Literacy
While your children may already appear to be constantly attached to a digital device, you can actually use technology to help teach your kids about money. There are several money apps and games available designed for children. You might need to do a little research to find the right one that will appeal to your child, but these apps are a great help in teaching your children about money and reinforcing what you are already teaching them.
Apps Track Chores, Allowance and Spending
FamZoo does cost $40 a year, but it promises to help children from preschool right up to college to learn about managing their finances. While it will keep track of allowances and chores, it also provides a prepaid card so that your child can spend, or you can create an IOU account that covers money that you might be holding for them separately. The Allowances & Chores Bot costs $3 to download, although there is a free lite version available too. You can use it to pay your child for the chores they do for you at home without having to worry about giving them cash. You can set your child's chores on the app and then pay them either automatically or manually. If your child wants to buy something using their money, or you pay for it on their behalf, then the app will even let you deduct the amount from the balance.
Be Open with Your Kids About Money
Whatever the age of your children, it's important to be honest and open with them about money and encourage them to be involved in important family financial decisions. Talking to your children about money from an early age encourages them to understand the importance of managing their money, while also being equipped with the tools to do so. Goalsetter, for example, is another child-focused savings app that offers a savings account, quizzes, and child-friendly information. While the aim is to help engage kids with being responsible with their money, it also helps parents to keep on top of their children's financial education.
To ensure your children are on the right track for a healthy financial future, start talking to them about money as soon as possible. With the array of apps and games now available, you don't even have to go it alone.