Today I have another guest post from The Money Whisperer. This one is perfect for me as Olivia is getting older she needs to know how to be not as frivolous with money as her mum and I am always open to tips on how best to teach her how to deal with money.
The Money Whisperer’s top tips for teaching your children about money
Financial education of our children is going to become even more important than it has ever been. In a time of credit cards, Apple Pay on our phones, the increasing ease of digital payments (movies, video games, and in-app purchases), internet banking and online shopping, children don’t often see people buying products with physical money like notes and coins.
However, there are some great products out there which embrace the digital world which our children are growing up in, and enable them to learn valuable concepts in a clever way. Here I share my 4 favourite apps for teaching children about money.
RoosterMoney Pocket Money Tracker (https://www.roostermoney.com/about)
RoosterMoney Pocket Money Tracker is a virtual piggy bank, designed to teach children the concepts of delayed gratification and saving. It is aimed at children from 4 years of age. Parents can sign up and add multiple kid’s pocket money accounts, while children each get their own Pocket Money Dashboard via a separate login.
Children can set themselves ‘goals’ e.g. toys they are saving up for or experiences, and a photo of that dream purchase can be uploaded with its corresponding monetary amount. Any number of adults can be added so grandparents can ‘boost’ a child’s account with one-off gifts.
The good thing about this app is that the child is in control. They choose whether to move money into their ‘safe’ (where it can earn interest) or to put it towards their goal and ultimately spend it. The idea is that they learn the importance of saving versus spending in a safe environment.
There is no real money involved. When the child has enough money to reach their goal, the parent is responsible for the actual transaction.
The basic app is free with in-app purchases available which enable you to add chores to be completed for additional money, add a regular allowance to be deposited and select an interest rate to be applied to the money in the child’s safe.
Amazing Coin (https://itunes.apple.com/gb/app/amazing-coin-gbp%C2%A3-educational-money-learning-counting/id879982920?mt=8)
Designed for both iPhone and iPad, this app is a fun and educational game for kids to practice identifying coins and solving various maths problems from sequences to matching groups of coins with the same value. It aims to teach kids how to recognize, count, add, pay and make change with coins.
At a cost of £1.49, it is aimed at 5-11-year-olds. There are nine interactive games to entertain them and they get 20p virtual rewards for correct answers.
The Lemonade Stand (https://itunes.apple.com/us/app/the-lemonade-stand/id574412697?mt=8)
This free app, aimed at 2-7-year-olds, is a fun way for children to learn the basics about money management by running their very own virtual lemonade stand. It is very visual with brightly coloured fruits which you drop into a blender to create different flavours. You’re given certain variables, a list of ingredients and how many cups you make. The money you earn you put into the virtual piggy bank.
This is a very simple app aimed at younger children but great for teaching the building blocks of what you need to ‘earn’ money. The only downside is that the prices are in dollars.
Designed in collaboration with VISA, GoHenry is aimed at eight to 18-year-olds. Parents set up an account and link it to an account for their child. The child’s account then comes with a prepaid Visa debit card.
Parents are able to control the child’s spending limits and where the card can be used via an app. Real-time notifications then let the parent know when – and where – their child is spending.
Allowance transfers can be automated and the child can also receive additional money for completing chores.
For a limited time, GoHenry is offering a completely free one month trial. After that, the cost is £2.49 per child, per month. UK cash withdrawals and loading the card using a bank transfer are free. Loading a card from a debit card costs 50p per load.
Where Can You Find The Money Whisperer?
Emma is a UK based family lifestyle and personal finance blogger who shares her secrets to living the good life on her blog The Money Whisperer. She has worked for 15 years in the finance industry and is now simplifying money matters, as well as sharing her experiences as a mum who loves living the good life, through her blog. Her focus varies from saving tips to the best apps to use to find great deals and clever hacks, through to travelling and her family time. She is a mummy to two little curly princesses who more than keep her on her toes but she wouldn’t have it any other way!