Our previous advice of using see through jars to explain saving money to kids, and showing differences between each coin and bill is still valid. But the truth is, that the physical object of money has started to disappear. Digital age brings us even more use of credit cards. And it also adds to the mix smartphone apps and other methods to pay for items without handing over actual cash (or anything – not even a card). This can make teaching kids managing money a lot more difficult. You can’t only teach them about the physical paper and coin money. Kids will need to learn more about money in the digital age. Today I’m sharing a guide to help you explain digital money to kids in a digital age.
Play Electronic Monopoly
This board game has advanced from its old-school paper money format to the current times. You can now play electronic Monopoly, like Monopoly Game: Ultimate Banking Edition. Just like with traditional Monopoly, playing the digital version can turn into a great family bonding activity. And at the same time you’re explaining money to kids in a digital age. You may not think your kids are taking in anything education while playing together, but they are paying attention if they’re in it to win it. For us, this is the perfect help to explain money in a digital age without frustration.
Play Pretend Store – with a line of credit
There are many toys on the market that encourage pretend play. Maybe with a cash register and pretend food to purchase. Consider explaining money to kids in a digital age by creating credit slips instead of using the paper money and coins that arrive with the kids toy register. Enjoy playtime with your kids as you purchase items on credit and teach your kids how to tally up the credit and watch limits. It’s a fun way to showcase how credit works which is a predominant part of money these days.
Setup Online Banking Access
If you have set your kids up with a savings account, then having online banking access will be a brilliant way to explain modern money to kids. As it is, most of our funds will sit in a bank as adults and we either pull cash out, transfer electronically from one place to another or use a debit card for transactions. Setting up online banking access for your kids is the perfect hands-on approach to teaching kids about money management and how it works. Additionally, you can connect their bank accounts to Homey app, and transfer money to their account this way, so that they can see what their getting paid for, learn about budgeting, and manage their funds.
There are many ways you can explain money to kids in a digital age. You can incorporate learning about digital money into grocery shopping trips, planning the household budget, and doing some of these tips. The younger your kids are, the more hands-on pretend play activities will suit your kid best. The older kids can start to learn more with the online banking approach. Whatever method you decide to use, remember that teaching kids about money in our digital age is vitally important for their continued financial success as adults.
About the Author – Brandy Ellen Tanner is a Positive Lifestyle blogger who works from home while raising her 3 children. Learn more about Brandy at BrandyEllen.com and read her other parenting articles at ParentInfluence.com.Tags: digital money, financial literacy for kids