Apart from all the physical, emotional and family effects, mobile technology has changed the way we use and value money.

We live in a world where we don’t see physical money often. Online purchases are made and cards are tapped or swiped.

Data from comparison site finder.com.au reveals if current trends continue, physical cash could vanish in Australia as soon as 2026.

Children’s games on tablets are purchased online without a hint of any notes or coins being exchanged.

How do they learn to check change or even add up their bills?

How will children learn the real value of money without seeing, touching or paying with it?

Children lack the connection between themselves and the day to day essentials to live in this world.

How will they form an understanding of life skills?

Guiding money-wise kids

Here are a few tips to help your kids be money-wise:

  1. Explain ATMs – how and where money comes from
  2. School banking – if your school has a banking program, open an account, contribute money as a reward and set an end of year goal to withdraw
  3. Explain debit and credit cards – that they have to be paid off, topped up with money and that purchases are not free
  4. Pay pocket money electronically – set up an online bank account and contribute money for chores and homework. Once they are old enough to manage their own bank account, transfer the money over and teach them how to use ATMs (if they are still around), and to read and check receipts
  5. Start educating them about the world of finance from a young age – start with the simple money jar or piggy bank

And for the teenagers, check out the show on ABC ‘Teenage Boss’ hosted by mathematics teacher Eddie Woo. It follows 15 teenagers from across Australia as they take control of the family finances for a month, with some surprising and not so surprising results1.

Being money-wise is important to us. We can help guide you on the right budgets and investment decisions for a successful financial future – for yourself, your children and your grandchildren.

Contact the office today for a confidential discussion if you or your young adult children need help with managing their finances.

Sources: 1. ABC News, Here’s what happens when teens take control of the family budget for a month, June 2018

Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and that your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. © 2019