Quick, think of the last time you paid cash for a big purchase. The reality with money these days is that so much of our spending, saving and earning happens online and with plastic cards. That’s why it’s so important for us to teach children how to use these tools.
In order to teach children that there’s not “a giant money tree in the garden” as one parent describes it, we have to teach them that the money that comes out of an ATM is not unlimited (if only!); that charging something on a credit card means we have to pay and often pay more later; and that every transaction with a credit or debit card is “real” money.
In a recent Twitter party about how parents deal with pocket money, parents weighed in about what they thought, often expressing the wish that their children learn about money earlier than they did.
It’s increasingly a cashless world, which means we have to work harder to translate the concepts of money for children.
“My daughter thought that people just got money for free from the supermarket,” said one tweeter at our #pktmnyparents Twitter party.
The Independent recently named PKTMNY as the best online financial education tool for children. The newspaper highlighted parents’ ability to set up an online account (just like mum and dad have) and arrange weekly or monthly pocket money paid into it via direct debit. While there are some fees associated with the service, PKTMNY gives parents control over how much children spend in one go, and whether they can spend on the internet or the high street and whether they can access their money via an ATM.
Dr Elizabeth Kilbey, a clinical child psychologist says, “Children must be given the tools to engage with money to help them learn in a way that works for them, through doing.” Dr Kilbey says it’s time for a dramatic change in the way children interact with money, moving from the traditional coins-in-the-pocket to online tools like the ones they’ll use in adulthood.
“By allowing children to start taking control of their money in a safe and secure [online] environment, parents ensure children will be able to grow with money, learn from their mistakes and ultimately make that vital link between spending and behavior and understand the value of money,”says Dr Kilbey.
BritMums has worked with PKTMNY and a group of bloggers on a project to trial the PKTMNY site, providing feedback and testing it with their own children.
“Joining PKTMNY has enabled me to take the opportunity to discuss money with [my daughter] outside of the normal conversation of “No, you can’t have that I don’t have the money, put it on your Christmas list” that occurs on a regular basis. Instead of focusing on what she can’t have, we can focus on what she can have if she saves her money.”
On her blog Madhouse Family Reviews, Cheryl speaks to some parents’ reservations about the service:
“Before you start thinking there’s no way you’d let your kids loose on the high street or online marketplace with a bank card, don’t panic – it’s all been cleverly designed so that you (the parent) can set limits, per transaction and per week, and whatever the limits, you can’t spend money that isn’t in your account.”
More on pocket money:
How do parents deal with pocket money?
36 important lessons from parents about pocket money
Check out PKTMNY for yourself.
BritMums has worked with PKTMNY and bloggers to test the new site.
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