It’s funds and games

Teaching children the value of money and savings isn’t just child’s play, as writes

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

Sophie Elsworth

can let kids check balances on their accounts and move money between their own accounts.

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 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.

“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.

“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.

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

“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.”