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Education and Investments
Teaching Kids About Money in a Cashless Society
With the ubiquity of more convenient methods of payment than notes and coins, cash is no longer king. So how do we teach kids the value of money when they don’t frequently see it? The answer could be to focus on what they hear instead.
This can be problematic for children, leading not only to a lack of understanding of the value of currency, but even an inability to connect ‘paying’ with ‘spending’. Coming out of childhood with no meaningful concept of money can be bad news for an adult.
So how do we, as parents and grandparents, overcome the double-edged sword of digital convenience to impart the value of money onto future generations?
Of course, money still exists, and a time-honoured way to teach kids about finance is giving a cash allowance. It’s a particularly good tactic for older children, but not as effective for young kids who learn through observation, instruction and practice1.
1. Rettig and Mortenson (1986).
2. Holden, Kalish, Scheinholtz, Dietrich and Novak, (2009); Lau (1998); Roos et al. (2005).