Invisible cash is making it harder for children to learn about money

INTERNET banking, ATMs and “tap and go” payments are making it harder for Aussie kids to learn about money. But there are still ways to teach them about its value.

EXCLUSIVE

INVISIBLE cash is making it tougher for children to understand their finances as they have little dealings with tangible money, a new report has revealed.

A majority of parents (66 per cent) concede electronic transactions is a massive barrier for children to grasp the true value of money, alarming new findings in the Financial Planning Association of Australia’s latest report found.

With the surge in “tap and go” payments, internet banking and online shopping kids exposure to real money is waning.

The report dubbed Share the dream: research into the invisible money generation, quizzed 1000 Australian parents with children aged between 4 and 18.

It also showed many parents (68 per cent) are reluctant to speak to their children about cash.

This can be blamed on parents being stressed out by their own financial situation.

At Richmond Primary School, young students are learning about cash using coins and notes. Jordy Tregambe, 6, and Mai Coutts, 6, in grade 1 using the cash to learn about the importance of money. Picture: Alex Coppel

FPA’s chief executive officer Dante De Gori said pocket money is critical to help children understand the important of cash but there isn’t a right or wrong amount to give them.

“Can children translate money into what they have to do to earn it and what the value is in spending power,’’ he said.

“Without pocket money they are not being exposed to the relationship with money.”
The report found nearly 30 per cent of children receive no pocket money at all.

It also 62 per cent believe children today will be financially worse off than themselves.

Richmond Primary School’s grade 1 and 2 teach Simon Purdie said students created a mock supermarket in the classroom which has helped them how to spend and save.

“Kids these days haven’t got the same access to real money that they used to,’’ he said.

“It’s more important now for schools to help kids become money literate.”

Reserve Bank of Australia figures show the number of ATM withdrawals and use of cash has plummeted from 53 million withdrawals in June 2016 to 48.9 million in June 2018.

Tribeca Financial’s chief executive officer Ryan Watson said giving kids pocket money “makes it a lot easier for parents to discuss and teach their kids about money.”

“I don’t believe that the amount of pocket money given is overly important, it could be as small as to $2 to $5 dollars,’’ he said.

“The truly important thing is teach kids about the ‘value’ of money.”

He also urged parents to teach their children that “credit cards are the devil.”

The report also showed 38 per cent of parents admit to borrowing money from their child’s piggy bank or bank account to pay for urgent expenses.

@sophieelsworth

KIDS AND CASH

— The frequency of pocket money payments is up to you.

— Work out what jobs you will pay your kids for doing.

— Talk to other parents and work out what they do.

— Kids can split up their cash into three jars — saving, spending and donating.

— Set up a bank account for your child.

— Piggy banks are a good way to teach kids about cash.

Source: Moneysmart.gov.au

10 MOST LUCRATIVE CHORES FOR KIDS

— Mowing the lawn — $8.06

— Washing the car — $5.05

— Gardening — $2.91

— Cleaning windows — $2.84

— Mopping the floor — $2.17

— Cleaning the bathroom — $1.85

— Cleaning the kitchen — $1.67

— Tidying bedroom — $1.66

— Looking after the dog — $1.65

— Hoovering — $1.60

Source: Rooster Money