The humble piggy bank can take a backseat to this new financial tool helping your kids understand and save money.
Given how digitally savvy the younger generations are, it’s a no brainer that some companies are developing fintech designed to teach kids about money in a way that will resonate with them.
ZAAP, launched just this week, is a prepaid card designed for young people that assists parents in teaching their children about money management.
It also offers wearable bands in pink, blue or black with a Mastercard contactless chip inside, similar to the wearables offered by the big banks for adults.
ZAAP provides users with a mobile app with separate logins for parents and children. Here, parents can manage ZAAP accounts for multiple children, transfer funds to ZAAP accounts from linked ‘Parent Wallet’ and monitor their kids spending and saving. The children app lets them check their balance, transaction history as well as set and track savings goals.
Dr Justin Coulson, a popular parenting author and speaker, is working with ZAAP to “promote the importance of financial literacy”.
“Approximately one in five 15-year-olds do not have basic financial literacy,” said Dr Coulson.
“This trend is only going to get worse as we move closer to becoming a completely cashless society.
“We have a responsibility to our children to help prepare them for the financial challenges they will face as adults. With Australia reported to have the highest personal debt levels in the world, we owe it to our kids to teach them better habits.
“Products like ZAAP give children the chance to learn about and control their finances in a safe environment, and this is crucial for building strong financial skills for life and build better communication and relationships between parents and children,” added Dr Coulson.
RateCity tips for teaching your kids about money
- Use fintech apps – Just like ZAAP, there are several apps out there – such as Spriggy – that help children to learn about finance and allow you to monitor their spending and saving.
- Take kids shopping – bringing them grocery shopping, for example, is a practical way to show them how budgeting and financial decision-making works in real life. Help them to set a grocery budget, make a shopping list together and then teach them smart money habits like avoiding expensive brand-name items for affordable alternatives.
- Open a children’s saving account – if chosen and used correctly, children’s savings accounts can be a simple but effective way to teach them about income, budgeting and even interest.