Who likes the idea of giving their kids digital money? Whether or not you choose to give your kids pocket money for doing chores or it’s just a part of your everyday routine, you still need somewhere to put their birthday money and hopefully a little bit for savings each month.
However perhaps you decide that giving your child a debit card (powered by Visa) would be a much safer way of your child carrying money rather than losing coins and notes and having no idea what they’re spending it on…
Sounds intriguing doesn’t it? Mixed with a giant sprinkling of red flags, no…just me? Well there are now new services out there, that cater to parents who would prefer to transfer their kids cash/pocket money/their allowance instead of getting money out at the bank.
Look a part of me understands how much of a pain it is getting money out, making sure you have the right change to give the kids plus the other half etc. However I wonder if we really value money as much if we’re not seeing it?
I’m concerned that the invisible digital money tree won’t give the Royals the same tangible concern when they are spending their hard earned money. Is it just about better education and financial literacy from an early age or do we really have to look at whether or not this is a smart choice for our children?
Call me a bit old school if you like, but I think kids value things that they can touch and experience much more than the invisible digital money tree.
Now I was just reading about one of these new services Spriggy – and they are targeting parents with kids from ages 8-17 years old (once you’re a legal adult you can’t bank with them) plus they’re not associated with the banks. Sounds like a new version of a pyramid scheme endorsed by FB ads targeting the younger digital ready generation doesn’t it? Now obviously it isn’t any of these things – but it really did get me thinking.
So I sent an e-mail off to the Barefoot Investor to get his take on the matter – as I like his no BS policy and straight shooting answers. However he’s a very busy man and I haven’t yet heard a reply so shelved this article awaiting some feedback. Regardless of what his comments will/would be – I’d urge you to do your own research to find out if this is indeed the best program for you and your family/children/young people to be involved with.
In the meantime since I started writing this piece – the Barefoot Investor has come out with a new book Barefoot Investor for Families. He goes through some fantastic points about keeping things real with your kids, giving them responsibility and accountability in regards to money, shopping and cooking meals. He also recommends a three jar system for kids…real, tangible hard earned cash getting split into three jam jars.
Think I might try and start it up with the family in the new year – it’s never too early to teach our kids about financial literacy is it? Will look at writing an update to this idea early in the new year once we’ve got it all set up…until then, research plenty, trust your gut and finish a couple of jam jars in preparation for the new year.
Do you have any plans to change the conversations/start a discussion with your kids about money? Would love to hear your thoughts on what goes on/what you wish went on in your household. Love HRM.
Read more about my thoughts on educating ourselves and our kids about money here and here.