FINANCIAL LITERACY FOR KIDS : TEACHING THE ABCS OF ONLINE MONEY BY JUST MONEY
PIGGY BANKS , AND POCKET MONEY PAID IN NOTES AND COINS , ARE STAPLE TOOLS FOR TEACHING YOUNGSTERS ABOUT THE VALUE OF MONEY . THE RISE OF ELECTRONIC TRANSACTIONS AND DIGITAL CURRENCIES , HOWEVER , PRESENTS NEW CHALLENGES – AND OPPORTUNITIES . MANY CHILDREN ARE GROWING UP IN HOMES WHERE FINANCIAL TRANSACTIONS ARE MADE ELECTRONICALLY , AND CASH IS USED ONLY RARELY . THIS SHIFT POSES A DILEMMA FOR PARENTS AND EDUCATORS : HOW DO YOU MAKE MONEY TANGIBLE AND UNDERSTANDABLE IF YOU HARDLY EVER DEAL WITH IT IN A PHYSICAL FORM ?
TEACHING THROUGH EXAMPLE EVEN IN OUR DIGITAL AGE , THE MOST IMPORTANT MONEY LESSONS ARE STILL IMPARTED THROUGH THE ACTIONS OF PARENTS AND FAMILY MEMBERS , SAYS SARAH NICHOLSON , OPERATIONS MANAGER OF JUSTMONEY . CO . ZA , A PLATFORM THAT HELPS SOUTH AFRICANS MAKE GOOD MONEY CHOICES . CHILDREN LEARN BY OBSERVING THEIR CAREGIVERS , SO FOLLOWING SOUND MONEY MANAGEMENT PRACTICES IN YOUR HOME IS A GREAT STARTING POINT . INVOLVE KIDS , AT AN APPROPRIATE LEVEL , IN TALKS ABOUT HOUSEHOLD BUDGETING , SAVING FOR BIG EXPENSES SUCH AS HOLIDAYS , AND TAKING OUT A LOAN FOR A HOME RENOVATION , NICHOLSON SUGGESTS . “ AN IMPORTANT LESSON IS TEACHING THE DIFFERENCE BETWEEN ‘ NEEDS ’ – ESSENTIAL ITEMS SUCH AS FOOD AND CLOTHES – AND ‘ WANTS ’, SUCH AS TOYS AND TREATS ,” SHE SAYS . BUILDING ON THESE FOUNDATIONAL BLOCKS , THE DIGITAL WORLD OFFERS MANY FUN OPPORTUNITIES FOR TEACHING CHILDREN ABOUT MONEY THROUGH INTERACTIVE GAMES , APPS , AND ONLINE PLATFORMS . THESE ALLOW CHILDREN TO GAIN HANDS-ON EXPERIENCE , DEVELOP CRITICAL THINKING SKILLS , AND BUILD A STRONG BASE FOR FINANCIAL RESPONSIBILITY .