Managing money: how tech can help your child
Financial literacy is an important skill and there are plenty of digital platforms that can help your child discover more about different types of money management.
From in-game spending to having their own online account, there are opportunities to help your child learn to spend and save.
Virtual currencies
If your child plays online games, you may need no introduction to virtual currencies many games use (for example Roblox’s Robux).
Many online games use aggressive or pushy ways to pressurise users into spending in microtransactions – from time-limited offers to gambling-like loot boxes. Understanding the online games your child plays – and the spending options they may have – will help you both consider the real value of what’s on offer. It will also help you navigate a fun but also often stressful online gaming environment
Virtual currencies can seem like Monopoly money – which makes it easier to part with cash for a virtual item. But helping your child make a constant connection to real-world value of the currencies – perhaps what a virtual item costs, versus some other treat, like chocolate – can remind them of the exchange rate.
Read our guide to helping your child manage their money online here.
Settings and agreeing boundaries
Some devices include parental controls to supervise and manage purchases – such as in games. If you have these in place, you can help your child understand about these settings and why they can help – especially if they are using a device that has your card details registered (for example, a Kindle with an Amazon account).
Many purchases can be made with just a tap, so a child may not even realise they’ve bought something. Using parental controls may prevent accidental purchases or ones that could later be regretted.
If you do use them, it is good to explain why – and agree on some ways in which your child can think about spending with your support.
How? You might decide to confirm any purchases before they’re made. Or you could decide a monthly or weekly limit for them to decide how to spend (or save).
Whichever way, helping them understand the boundaries will help you develop their own self-control.
First steps into online banking
If your child gets pocket money, there are child-friendly banking cards that can help them learn about saving – with tasks to earn their money and ways to plan savings.
While popular high-street banks offer child accounts, these can be more limited than lesser-known online alternatives that offer cards and account apps – with ways to learn more about spending and saving money.
Hypejar lets users set up different ‘jars’ to manage different budgets – such as a clothing or a gaming budget.
Alternatively, GoHenry lets parents set up a companion account to help guide children in their spending habits.
They usually come with contactless cards and many more options. Some have a monthly fee, so shop around and find what may be suitable.
Be secure
Of course, staying safe with cash and remembering to set-up contactless devices is a must.
Digital payment platforms can connect a bank account to a phone, allowing you to pay with just a tap. Apple Pay (iOS) can be used by anyone 13+ as long as they have a connected debit card.
Once a phone is also your wallet, a PIN is the key to purchases – so it’s essential a child learns to be secure with this information.
A lost phone could also mean a compromised bank account. If they do have a connected account and lose a device – or see transactions they don’t recognise or remember – they need to contact their bank to cancel or freeze their card.