Financial Literacy for Kids – There’s an APP for That

 

Almost a third of Canadians (72%) agree that today’s young adults face more financial challenges than previous generations.   Rising educations costs, increasing debt levels and a difficult labor market are all good reasons why parents need to start talking about money to their kids.

It is crucial that parents teach their kids about the value of a dollar at a young age.  Although the majority of parents know their financial habits will influence how their children manage money; more than a third (36%) find it difficult to discuss finances with their kids.

The vast majority (97%) feel financial literacy is an essential life skill, and most believe (86%) kids should receive money management training in school.

Those who do receive financial training at a young age say their parents taught them the value of money and budgeting by having them share in the costs of things they wanted. 

“How often do your kids see you shopping verses depositing money into the bank?” asks Raymond Chin, a senior VP at TD Canada Trust.  He suggests, “Use examples in day-to-day life to demonstrate to your kids the importance of balancing priorities and budgets.  Explain why you bought milk on sale (for example) and be open about how much groceries, toys and vacations cost.”

The APP

Promoting financial literacy to kids can be difficult, give them a lecture and they will likely tune you out, but sneak it in as an iPad app and you will be sure to grab their attention.  RBC has developed a free iPad app for Canadian families to help them teach their kids about money.  Learning Money with Leo, teaches kids how to earn money, save for something they want, and spend wisely. 

“Our idea was to offer children a fun and engaging way to learn basic money skills they can build on in years to come,” said Jane Broderick, SVP marketing and channel strategy, RBC.  “This app is hands-on and tailored for children to use independently through games and advice, which will save parents time and teach kids the value of money.”

Children are becoming increasingly tech savvy at a young age.  Research shows that approximately half (52%) of kids under the age of eight have access to mobile devices, iPads or video iPods.  Furthermore, 46% of children between five and eight use a computer at least once a week.  The RBC app uses the latest technology to introduce young children (ages 3-6) to money concepts in an entertaining and interactive way.

It is important to seize every opportunity to teach our kids about money.   Research proves those who are taught at a young age about the value of a dollar carry good personal financial habits with them throughout their lives.

Off to download the APP, have a great weekend,

Tracey

Sources:  Advisor.ca original articles written by staff and Vikram Barhat, and financialplanningweek.ca