Children fail to understand value of cash

♦ The rise of cashless pocket money means children are in danger of no longer understanding the value of money, a think tank warned.

A report by Wealthiher found the number of 11-year-olds receiving an allowance paid directly into a bank account rather than in cash has risen by 20 per cent in the past six months.

It said that without better financial education in schools, the demise of children handling notes and coins could lead to a lack of understanding of financial basics.

Tamara Gillan, chief executive of Wealthiher, said it is easy for children to buy things with “a flash of a card” without realising how much they are spending.