Commonwealth Bank rolls out new banking app to help children learn how to manage their finances

YOUNG children can now manage their finances online and learn how to stash cash.

YOUNG Australian children can manage their finances online, set savings goals and tick off chores to earn cash as they learn the importance of handling money digitally.

Whether they are stashing money to buy the latest device or app to hit the market, the nation’s largest bank, the Commonwealth Bank, said the need for children to access their hard-earned savings online was critical to teaching the importance of money management.

The banking giant has launched the Youth app, which can let kids check their balances on saving and transaction accounts and even move money from one account to other.

Children are being taught how to manage their money online via a new banking app.

Many Australians are worried about their finances especially women and younger people

But users cannot transfer money to any other sources.

Mums and dads will never be far away because they can watch the financial habits of their kids through their own online banking login if they too are CBA customers.

The app was trialled by more than 2000 children last year and CBA’s head of school banking and youth Veronica Howarth said its success had resulted in the app being released to anyone with a CBA account and an Apple device.

Parents admit it can be difficult to teach children about how to manage their money.

“The parents can see their child’s account on their own adult banking app so they have full visibility of the account and transfers that are happening,’’ she said.

“We found kids have varied understanding of financial literacy and the concept, so a nine-year-old brother might have a much better understanding than his 11-year-old sister.

“It depends on each child.”

New CBA research found nearly half of Australian parents (43 per cent) admitted it was difficult to teach their children about digital money — or transacting online.

Parents believe technology would make it easier to track savings goals online (42 per cent) and monitor their spending via a device or computer (41 per cent).

Children can also create a list of chores on the app and tick them off as they complete them in return for pocket money.

Children can be rewarded for completing chores through a new banking app.

Tribeca Financial chief executive officer Ryan Watson said electronic banking including using ATMs and “tap and go” facilities had made it more difficult for kids to understand where money came from and its worth.

“Kids understanding ‘the true’ value of money is really important in this day and age, considering most financial transactions are completed electronically,’’ he said.

“Teaching kids a good savings mentality will set them up financially for life.”

@sophieelsworth

Originally published as Commonwealth Bank rolls out new banking app to help children learn how to manage their finances