Teaching youth the ABCS of online money
PIGGY banks and pocket money paid in notes and coins are staple tools for teaching youngsters about the value of money. The rise of electronic transactions and digital currencies, however, presents new challenges and opportunities.
Many children are growing up in homes where financial transactions are made electronically and cash is used only rarely. This shift poses a dilemma for parents and educators:
Sarah Nicholson, operations manager at Justmoney.co.za, a platform that helps South Africans make good money choices, said even in our digital age, the most important money lessons are still imparted through the actions of parents and family members.
“Children learn by observing their caregivers, so following sound money management practices in your home is a great starting point. Involve kids, at an appropriate level, in talks about household budgeting, saving for big expenses such as holidays, and taking out a loan for a home renovation.
“An important lesson is teaching the difference between ‘needs’ – essential items such as food and clothes – and ‘wants’ such as toys and treats,” she said.
Building on these foundational blocks, the digital world offers many fun opportunities for teaching children about money through interactive games, apps and online platforms. These allow children to gain hands-on experience, develop critical thinking skills and build a strong base for financial responsibility.
Here are some ways to use digital tools to create teaching opportunities: ■ Take advantage of online money courses and workshops geared at different age groups. Many use puppets, music, and story characters to make learning about finances fun.
■ Introduce children to online banking by showing them how payments, money transfers and other transactions are done. Explain fees associated with online transactions such as service and interest charges.
■ Show your child how to monitor online accounts so that they can detect unauthorised deductions or charges early.
■ Help kids understand value for money by involving them when you search online for the best quality at the lowest price.
■ Make them aware of security and the need to protect themselves against online fraud.
■ Instil ethical online shopping values by encouraging responsible buying, such as supporting brands with strong sustainability credentials.
■ Encourage entrepreneurial skills by showing your kids how to use digital tools to bring their ideas to life and generate income.
■ Set up a secure online marketplace where your children can sell handmade crafts, artwork or digital creations.
■ Help them understand investing with simulated share-trading games tailored to children. They can also follow the share price of a well-known brand such as Disney or Nike.
■ Teach children how to fundraise by supporting a cause they’re passionate about, such as rhino conservation.
They can contribute to, or start, an online campaign on a crowdfunding platform.
■ Go on a crypto treasure hunt by taking part in an online game to unlock a digital wallet, or hide your own clues around the house or neighbourhood, leading them to digital wallets containing small amounts of cryptocurrency.