Thanks to the beauty of tap and go, it can be difficult to teach children about the value of money, which can help prevent financial hardships later on in their lives.
People’s Choice Financial Planning’s Lisa Jones explains to Nine Finance on why it’s important for your grandkids to be able to navigate through a cashless economy:
“Not seeing money exchanged for goods can give children the idea that money is unlimited with no difference between savings and credit,” she says.
“It is important that children understand the cost of making purchases with borrowed funds.”
The tried and true method of giving children pocket money for household chores is a good way of teaching children the value of money.
“This will help them understand that they can save towards a goal and that their spending decisions have repercussions,” Jones explains.
MoneySmart’s senior executive leader Laura Higgins agrees.
“Giving your kids a good foundation and teaching them about money is critical for their personal development,” Ms Higgins told Nine Finance.
“Showing children the basics such as how to budget, spend and save will establish good money habits for life.”
Do you have any tips and tricks when it comes to teaching your grandchildren how to handle money?