How much do your kids know about money? New research has shown that over 40% of 14-25 year olds don’t know the difference between being in credit and being overdrawn – and 13% don’t know what an overdraft is.
Start with the basics and try to give them something to keep their attention in an illustrative, interactive fun way.
These scary statistics were uncovered by the Personal Finance Education Group charity (Pfeg) and Barclays – revealing a reality we need to change.
So how do we teach our kids about money?
Money management for kids should be simple and entertaining. It’s about showing them how they can use money to achieve their own personal goals – even if that’s just saving up for a new bike, games console, or having the cash to buy sweets and magazines!
One way to help teach your kids about the value of money is through a money app for their smartphone or tablet. Around 28% of 5-15 year olds in the UK own a smartphone, according to OfCom – while almost 70% of 15-year-olds do!
Get them involved now and they’ll have the foundation and skills they need for the future.
Below are some the best money management apps for kids:
Aimed at: Tweens and teens
You get to create your own character and go through a virtual version of life, with all that it throws at you: from dealing with debt, to your car breaking down, to deciding how much to spend on food – will your kids end up rolling in money or desperately in debt? You can read more about Mindblown Life here.
The only downside to the app is that the currency is in dollars.
The Lemonade Stand
For: iPhone/iPad and Android
Aimed at: 2-7 year olds
This app is a fun way for kids to learn about money by running their very own virtual lemonade stand. It includes loads of lovely bright colours and is simple to play.
You may or not remember the original back in the 70’s and 80’s for the PC (we loved it!).This remake for smartphones and iPads is a lovely way to test their knowledge and see your little ones learn about money management goals from a young age.
You’re given certain variables from the weather to roadworks, marketing material, ingredients and how many cups you make. The aim is to make as much profit as possible over 30 days. It’s all about earning and learning.
Aimed at: Parents and tweens/teens
This app for parents and kids is a virtual online account that updates your child’s piggy bank and helps you track spending. You can reward good behaviour, decide how much they receive each week and subtract money if you want too.
It’s free to download and you can sign in to the app using your computer, tablet or smartphone. It’s really easy to use and a great way to monitor spending and manage pocket money and allowances.
GoldStar Savings Bank
Aimed at: 5-11 year olds
Made for the iPad, this app is all about inspiring a generation to save. It’s really engaging – it teaches children how to manage money in a really fun and creative way.
It allows kids to record their savings and earn rewards for completing household chores and other tasks. It basically teaches children core financial skills without them realising it!
Amazing Coin (GBP)
Aimed at: 5-11 year olds
If you’re looking for a fun and educational game to help give them a head start in money management this is the app for you. Amazing Coin lets kids practice identifying coins, solve maths problems and helps them pay and count and recognise different coins.
There are seven interactive games to entertain them and they get 20p rewards for correct answers. It’s super kid-friendly and you get uninterrupted and unlimited play so it will keep them occupied for ages!
Some websites and apps listed as recommended by www.quib.ly experts
Top tips for money management for kids
- Money doesn’t grow on trees. We know that, but do our kids? Make sure they understand the true value of money and purchase decisions.
- In today’s digital age, money can be disguised as a few numbers on the keyboard in an online transaction, or a tap of your card in a shop. It’s harder to show that it isn’t available on tap and each purchase is a thought out decision. It’s getting them to see the difference between something they need and something that would just be nice to have.
- Be open and talk about money with your children as early as possible. Get them involved in paying in shops with coins and helping you get money out the cashpoint.
- Show them that they can often get a better deal and that a saving can be made.
- Reward them for saving – with a savings goal or interest on the money they’ve put aside.
- Use all the resources you can to educate and keep them engaged. Monopoly is a good one, or apps and online games.
- If you give them pocket money, you can set up a way they can earn it – through chores or doing their homework.
- Let your kids make their spending decisions…and their own mistakes. Better a few quid lost now on some hairbands than a mass of bad debt as an adult!