Most of us know that learning to manage money is a life skill. What fewer of us realise is that financial literacy is something that can be taught from an early age. For parents who wish to get their kids started, here are 5 tips to help them keep at it.
1. Gamify the experience 🎮
Children learn best from games and experiences. Get them involved during the family’s weekly grocery-shopping trip. At the supermarket, start a contest where they have to compare prices between snacks and decide which ones are better value for money. Or, set them the task of accumulating their spare change and the winner at the end of each week gets an extra topping with their ice cream on Sunday night.
Revolut Junior lets parents and kids set up Goals to help track their savings progress. Teach your child to round up their purchases and add the difference to their Goal in their Junior app.
2. Don't give them everything, every time 🧹
As parents, it can be tempting to take the easy way out: give the kid what they want so they'd leave us alone. Children have to understand the value of money, and the work involved in earning it. If your child asks for a new skateboard, instead of buying it for them immediately, help them "earn" it by setting them a number of tasks to complete.
With Tasks, parents have a way to reward their children for a job well done. When your kid marks a Task as finished on their Revolut Junior app, your Revolut app will send the reward to their account at once.
3. Expose them to money in its different forms 💳
Children today have fewer opportunities to see cash changing hands. Rather than leave them wondering why you were able to walk out of the supermarket without "paying" for your groceries, take the chance to explain how Apple Pay works. Show them how money was deducted from your account even though you "paid" for something by tapping a couple of keys on your laptop.
Parents can order Revolut Junior debit cards for their children and use these cards as an opportunity to teach them the concept of debit cards and how they work.
4. Explain how delayed gratification works ⏳
An important aspect of financial literacy education is the concept of delayed gratification. This is important because as adults, we don’t often see immediate returns on our investments and savings. As parents, we need to nurture our children's ability to plan for the future and it starts with learning to wait for the good stuff. If your child wants to buy a PS5, set up a savings goal and have them work towards the big prize.
Since both you and your child can add to a Goal from your respective Revolut app, make a promise that for every $1 your kid saves, you'll match it with another. This way, your child will be even more motivated to save up for that big-ticket item.
5. Trust them to make their own decisions 👌
Give your child the chance to decide what they want to spend their money on. You may not necessarily agree with all their decisions but as long as they're not buying questionable items like cigarettes, alcohol, or adult items, allow them some degree of independence. The last thing you want is for them to become afraid of money.
You'll receive a notification on your phone whenever your child uses Revolut Junior to pay for something. This way, you are aware of what they're buying without being there with them in person. The Revolut Junior card cannot be used at age-restricted merchants such as alcohol shops, massage services, and gambling joints.
For more information about Revolut Junior, click here.
Join Revolut for Free
Manage your everyday spending with powerful budgeting and analytics, transfer money abroad, spend easily in the local currency, and so much more. Join 10M+ already using Revolut.