Piggy Banks vs. Banking Apps: Teaching Kids About Money in the Digital Age – EarthySpirit.com

Piggy Banks vs. Banking Apps: Teaching Kids About Money in the Digital Age

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When you buy food with a swipe of a card and fee statutes with a click of a button, what are your kids learning about fund?

“It is getting harder and harder to teach our children about money and finance in the digital world-wide because there’s just not so much better opportunity to interact with money, ” said Liz Frazier, a New York-based financial planner and author of the upcoming book “Beyond Piggy Banks and Lemonade Stands.”

In a world-wide of neat budgeting apps and debit cards for kids, Frazier recommends fastening with the basics — at least initially. Start kids on the three piggy bank system — one for spend, one for saving, one for sharing. Frazier utilizes simple clear jars so they can see their fund grow.

Children likewise learn about money by watching their parents. While swiping a debit card at the storage builds appreciation to you, kids don’t concretely view that transaction as spending money.

“As mothers, we should try to expose[ children] to real fund whenever we can, ” she said.

For those who don’t regularly carry around cash, this is easier said than done. Frazier recommends is the beginning with smaller purchases like coffee or lunch at a restaurant. Show your children the invoice, help them count out money for pay and ask them to check if they received the correct modify.

When you aren’t apply physical money — like when you use a debit card for groceries or a check for a school fundraiser — treat those instants as opportunities to advance the money conversation.

“Start explaining the differences between what pay method you’re using — the debit card, debit card and cash — as you’re using it, ” Frazier said. “They’re not going to totally understand everything in the beginning, but you just want to get them comfy with the product.”

Once you feel your child has an understanding of money basics and has had plenty of interaction with physical cash, opening a bank account for your kid can be used as a good transition to working with online tools and digital transactions.

Fight the temptation to start an online report from the accessibility of residence. Visiting a brick-and-mortar bank or credit union is a better learning experience, Frazier said.

“Go to the bank together and have the banker explain to your child that you’re opening up an account, ” she said. “At this point you can get a debit card and be able to use it together at the storage or getting out fund at the ATM. You can also look at the statements every month, or every week if you want to, and walk through what fund you throw in[ and] what you took out.”

Opening a savings account is a good opportunity to introduce your kids to the concept of interest — how their money grows when they let their savings sit.

Pro Tip

When introducing your kids to money management apps, Frazier recommends including them in the research to find one that is established, secure and engaging.

Conversations about fund lessons for kids should stay positive and focus on useful information. If money stresses you out, do the very best not to convey that to their own children. Instead focus on the lessons you’ve learned from your fiscal gaffes. And don’t forget to tell your kids about your success and what objectives you have.

It’s Never Too Late to Provide Money Lessons for Children

Speaking of financial gaffes, Frazier said exposing your kids to money at an early age allows them to stir blunders when they’re young enough that the consequences aren’t so weighty.

Maybe they invest all their money on a trendy gadget that turns out to be a dud, or they give in to an impulse buy that sets them back from saving for something they really want. The fallback from those selections isn’t as devastating as not having any savings when emergency measures pops up as an adult.

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If you’ve missed out on teach your kids about fund in kindergarten and now they’re in their teenage years, it isn’t too late to start having personal investment discussions. As a financial planner, Frazier recognizes the negative consequences that come from people not being taught about money.

The Penny Hoarder conducted a financial literacy survey in March and found that adults who didn’t grow up learning about money built less income and had less savings than those who were exposed to financial literacy growing up.

Teaching your kids about fund is the best gift you can give your children, Frazier said.

“They are going to learn it one space or the other so you want them to learn it the right way, ” she said.

Key Takeaways

Give your children suffers with tangible fund. Include your children in dialogues about financial decisions. Open a bank account for your kids to transition them to the world of digital finance. Share your personal lessons, the expected accomplishments and objectives with your children.

Nicole Dow is a senior novelist at The Penny Hoarder. She already talks to her 4-year-old about money.

This was originally published on The Penny Hoarder, which assists millions of readers worldwide give and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 graded The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

Read more: thepennyhoarder.com

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