But now that the digital world has become a huge part of our lives, there are a number of apps that can help parents start discussions with their kids about saving and budgeting. Listed below are 5 easy to use apps that can help kids learn smart money skills that they can take with them for the rest of their lives.
This free app can help prepare kids for larger purchases and is a great way to teach your kids about money management. For example, if your child wants to save for a bike, they can enter the information into the app (e.g. cost of the purchase, weekly pocket money, gift money) and then the app will tell them how much they need to save and how long it will take for them to save it.
Do you want to teach your kids about the value of earning your own money? With this app, you can set your kids jobs for the week, decide how much they will earn for each job and it will help your kids manage their earnings. The app will track completed jobs and earnings and at the end of the week will divide the money into 10 % giving, 10% investing, 10% savings and 70% spending. This is a great way to teach kids about why you should split up your income into savings and spending and can help develop strong saving habits down the track.
Savings Spree teaches kids about how their financial choices do have an effect on their savings. This app shows how they can save for short term goals, make financially savvy decisions and also how to divide up their money into savings, spending, donations and investments.
If your kids are a little older and you want to make sure they are budgeting wisely, this app may help. TrackMySpend allows you to record expenses by categories. For example, your child may have a category for their social expenses, clothing, toys or other purchases. If they are earning their own money and don’t know where the money goes, this is a great app to help keep track. It will give them an idea of their spending habits and give you an opportunity to chat to them about it.
You are also able to create a spending limit, view expense history and add tags to categorise expenses. While kids do not have to be as strict with their budget when they are living at home, it’s a good idea for them to start tracking their spending so they can see where their money goes every day.
This app is set to be released at the beginning of 2016 and aims to be a digital piggy bank for 8-18 year olds. Piggy is a financial education product that both the kids and parents can use. Kids have a pre-paid debit card that they can use wherever credit cards are accepted and parents are able to top up the card whenever they like. Parents are also able to follow their kid’s transactions and also set up savings goals within the app.
The aim of this app is to give kids more financial independence to make their own decisions, however their parents are still able to track their spending and saving.
At State Custodians we have a passion for educating people about money and home loans. If you have any lending questions or want help working out your home loan options, our Lending Specialists are here to help.