Judging by the number of money students owe as loans, and the number of foreclosures on mortgages, the spending culture of youth lately, it is quite evident that we the world has a financial management crisis on its hands. Children and even the older kids do not have the financial skills and wherewithal to manage money. Even though this is a very urgent situation, most schools do not educate the kids about finances. To protect kids from this kind of problems, parents must take the bull by the horn and must tackle this problem directly.
Most adults missed out on financial education, and this was because a university degree was of utmost priority to our parents. In their defense, a university or a college degree would guarantee a 9-5 job. But the reality now is that people required more than one source of income to be comfortable and considered as rich. Children in the world of today, require some financial education to live a decent life. It could be so easy making money nowadays. People have become millionaires off making YouTube videos, blogging, social media influencers, essentially doing what they love, and cashing in on it. Apart from some things parents can do to help their kids, there are some financial applications that kids can make use of. Before diving into the applications, below are ways parents can help their kids with financial education
Financial discipline: Parents have a significant influence on their children. They should be allowed to make financial decisions, and bear the consequences, even when they are young. For example, you can give your kid a certain amount of money for weekly upkeep. If your child spends all the money in less than a week, he has to wait until the following week to get another. This simple gesture goes a long way in teaching your kid financial discipline. Although might seem tough on the child initially, the child would understand the importance of financial management and its consequences.
Delaying gratifications: One thing prevalent with kids is that they always want to have their needs satisfied immediately. Even though this should be allowed, however, it has to be controlled at a certain age and under some circumstances. As an illustration, your kid has been asking you to buy a particular toy, solely because most of his friends own one. Simply explaining to your kid that he can’t have the said toy until Christmas, or a set time is a great way to help him/her learn how not to spend money on things you want, just because you can afford them. Teach them to rather invest in what they need.
Saving: You should endeavor to teach your kids how to save. Everything should not be spent on candy. A simple way to do this is to get a piggy bank for your kid, and two other jars. The first jar should be labeled “spend” and the other “share” Whatever money he/she gets, from the parents or other people, should be divided into two. The first half should be deposited into the piggy bank, while the other half should be split into two equal parts, and kept in the jar. The “spend” jar would serve as the current account; your child can spend the money whenever he/she wants. The money in the share jar should be given to another child in need. Lastly, the piggy bank can only be opened at the end of the year. Your child can decide to buy whatever he/she wants for himself with the money. You would notice that children would spend money with caution when they realize how much time it took them to save up the money.
Goal setting: Another virtue your child should learn is setting goals and achieving them. This goes beyond just finances but has to do with life. People who plan their activities and future events are usually more successful than those who don’t. Help your kids set realistic goals, so they won’t be disappointed when they don’t achieve them. Goals such as saving up a specific amount of money, by the end of the year. What is needed here is the effort. If your kid could save up a substantial amount towards his/her project, you should balance it up as a way of encouragement, and a job well was done. Giving your monthly child stipends would be a great idea, so he/she can have a proper plan for saving. However, it all depends on you, and how you want to deal with your children.
Work for their money: This is an idea is best for teenagers, especially those above 14. Students go on a summer break for 3 months every year. You can make or help your kids get a job, to get some money during the holidays. It doesn’t matter if you’re well-off. The idea is not about the money per se, but for them to realize what a dollar cost. They would respect and be more cautious spending money, and how hard and long it took them to save up that kind of money.
Getting involved in the financial market early: Technology runs the show and will continue to do so. The financial market is not an exception. The most valuable means of exchange was the gold. However, the new gold now is cryptocurrency. Leading the pack is bitcoin. One bitcoin was worth a few tens of dollars a few years back, but now worth over ten thousand dollars. This means that those who were smart and lucky enough to put in money when it first came out are all millionaires by now, if not billionaires. Your kids should be exposed to this kind of prospects when still young. The world is changing, and more opportunities would come by, kids should know that it’s perfectly fine to want to make money, but at the same time, they should learn that happiness and contentment are all that matters.
Games: There are some games that your children can play to help them learn about making good financial decisions. An example is a monopoly. Monopoly is a board game, that can be played and enjoyed by adults and teenagers. Your children would learn how to prioritize, save money and cash management.
Books: Fictional books are good, however, as much as your kids love these books, it’s best to throw in some financial books. There are some financial books that have been made for children, and some are written in simple terms. An example is the Robert Kiyosaki book “Rich dad, the poor dad.” Books open up the mind of its readers.
Let them learn from their mistakes: The best time to make financial mistakes is when you’re still young, and without serious commitments. The implications are real, but they are temporary. They still have a lot of years ahead of them to make better decisions.
PERSONAL FINANCIAL APPLICATIONS FOR KIDS
iAllowance is an Apple application that is created for parents that would like to monitor their kid’s expenses and tasks. iAllowance is the app; technology savvy parents use in teaching their kids how to save, how to earn money, time consciousness, how to be goal oriented and disciplined. There is an opportunity to reward your kids with money when they’ve completed their task. Children are more driven when there is the goal they have to attain.
iAllowance is just like a virtual helper that assist, keep records and monitor the day to day activities of your children. In addition to this, parents can set up notifications, that would alert their kids when they need to get a task done. They are automatically rewarded when it’s completed. Although this application isn’t free, its usefulness entirely outweighs the $3.99 you would pay for it.
This application was created for kids between the ages of 5 and 9. The purpose of the app is to teach kids how to spend and save. PiggyBot, as its name implies, is just like a virtual piggy bank. The app has the feature where your kids can upload the images of what they want, and also a picture of what they have already bought. It’s a platform where you can monitor the allowances you pay to your children after they completed a task or done their chores. You can use the app for more than one person, all you need to do is to assign a personal identification number to each child. They can log in to their account with their respective names and password. When it’s time to pay your kids, all you have to do is take a walk to the bank, withdraw some money, and pay them. This app teaches the kids financial responsibility, discipline, and overall, saving and spending money. This application is free of charge, but can only be used on Apple devices.
This application was created for kids between the ages of five and fourteen. The purpose of the app is to teach kids how to budget, spend and save money. Bankaroo is like an online piggy bank. The app has the feature where your kids can upload the images of what they want, and also a picture of what they have already bought. You can also monitor the allowances you pay to your children after they completed a task or done their chores. You can use the app for more than one person. Should you have more than one child, each child would have to open an account, and a personal identification number will be assigned to them. They can log in to their account with their respective names and password. When it’s time to pay your kids for the job they’ve done, all you have to do is take a walk to the bank, withdraw some money, and pay them. This app gives them the chance to put up their weekly, monthly budgets.
The best thing about this app is the easy interface; it’s beautiful and simple. Bankaroo teaches the kids financial responsibility, discipline, makes them goal oriented, and overall, saving and spending money. This app is available on all platforms such as Apple, Android, and windows.
4.Rooster Bank: The Rooster bank, just like other apps, is modeled like an online piggy bank. The purpose of the app is to teach kids how to budget, spend and save money. Bankaroo is like an online piggy bank. This app motivates kids to do more chores in the house because the financial reward drives them to compete among themselves. The most hardworking is usually the most paid. The app has the feature where your kids can upload the images of what they would like to purchase, the price and how long they must work to get the money. You can also monitor the allowances you pay to your children after they completed a task or done their chores. You can use the app for more than one person. Should you have more than one child, each child would have to open an account, and a personal identification number will be assigned to them. They can log in to their account with their respective names and password. When it’s time to pay your kids for the job they’ve done, all you have to do is take a walk to the bank, withdraw some money, and pay them. Another plus is that a child can have more than one guardian, this means that they can get money from other people, like their Uncles and Aunts. This app is available for Apple, Android and Amazon platforms.
5. Osper: Osper is an application that can be used on mobile phones. This app comes with a card. Parents can transfer money to this card, especially when their kid has completed his/her task. This card is just like the MasterCard and Visa cards, except that children under 18 can’t open or have an account with a bank card. This is where Osper comes in. It’s safe and makes your kids feel grown and responsible