Creating cashless kids

In this era of ‘tap and go’ purchases and online ordering, many of us have little need to ever handle any real, cold hard cash. It’s little wonder that many kids aren’t learning enough about money, how to manage it, and how to avoid debt. Here’s some tips on how to raise money smart kids.

Invisible cash

  • They use a smart card to catch the bus through to having a prepaid card for the school tuckshop. Our kids conduct many of their own transactions without needing cash.
  • They watch us tap and go for our groceries and petrol, and buy furniture and appliances on interest free deals.
  • This leaves today’s kids with the impression that a never-ending money supply just exists out there in cyberspace.
  • It’s like cash is invisible – so they’re not learning how to handle and manage it.

Financial literacy

  • But of course it’s really important that our kids develop strong money sense.
  • If they’re not taught how to understand, earn and use money, today’s kids run the risk of becoming a generation laden with dangerous debt.

Cashless kids quiz

  • Do you know how long it would take to pay off a $2000 credit card debt if you only make the minimum monthly repayments?
  • Do you understand what happens to the remaining balance at the end of that interest-free payment period?
  • A recent survey of high school kids, run by the Financial Basics Foundation, reveals most teenagers are confused about credit cards and interest free deals.
  • This is despite the fact that around 85% of them thought they had a pretty good understanding of how they worked.

Take the test yourself!

Making money smart kids

  • The good news is, our children will become money smart kids through our help.
  • Also check out our handy info in 5 things to teach your kids about money.
  • By letting kids earn some pocket money and teaching them how to budget, we’re giving them the tools to manage their own finances.
  • Explain the risks and hidden costs of credit cards and interest-free deals.

Need more info?

  • The MoneySmart website has some great info for teaching kids about money.
  • It includes some fun digital activities that the kids can enjoy, so they have fun while they learn all about dollars and cents.