Aussie parents worried about kids in cashless economy
As Australian families prepare for the holidays to come to an end, new research* into attitudes towards money and financial education, reveals that 43 per cent of parents believe their children don’t learn enough about money at school.
Spriggy, a financial education app, commissioned the national survey of parents with kids between the ages of 8-17 years, and found that more than a third (39 per cent) of those surveyed are ‘worried’ about their children’s understanding of digital money, with Queenslanders the most concerned. Despite this, three quarters (78 per cent) of Aussie mums and dads continue to provide pocket money using physical cash.
Aussie parents are big believers in pocket money
Spriggy’s research reveals that Australians are still firm believers in pocket money in its traditional form, with two thirds (63 per cent) of parents believing it should be earned, using cash as a reward for completing chores around the home. Nearly half (45 per cent) say that pocket money is a ‘given’, and they provide an allowance for their kids to spend ‘how they like’.
Over half (56 per cent) of mums and dads are providing their children with pocket money on a weekly basis, with 42 per cent handing out $5-$10 per week, equating to up to $520 a year per child, and one in five (21 per cent) dishing out up to $1,040 per year, with weekly installments of $11-20.
Despite the fact we are moving towards an increasingly cashless economy, the majority of parents (78 per cent) continue to provide pocket money in cash form, with many viewing it as an inconvenience. In fact, 20 per cent of parents say they rarely withdraw cash for themselves, predominantly using the ATM for pocket money purposes, with 11 per cent admitting that they have been unable to give their children money before, simply because they didn’t have any cash on them.
More than half (53 per cent) of parents surveyed use pocket money primarily as an education tool, with 46 per cent believing their child still has a lot to learn about the concept of money.
Mario Hasanakos, Spriggy’s Co-founder said, “When it comes to learning about money, real world practice is critical. In today’s increasingly cashless world there is a disconnect in the way we are handling money as adults, and the way we teach our children about spending and saving. To get our kids ready for the future, we must teach pocket money lessons in a relevant way.”
Aussie kids have a thing or two to learn about saving their pennies
A quarter (24 per cent) of Aussie parents admit their children spend their pocket money within a week or less of receiving it, and a quarter (24 per cent) reveal that their children have ‘lost’ physical cash before. This might not be helped by having a supply of dollars at their fingertips, with a third (29 per cent) of parents surveyed revealing their children still store their savings in a traditional piggy bank.
Aussie kids are inherently interested in the concept of money, with over a quarter (28 per cent) of mums and dads saying their children have always been curious about money from a young age. 13 per cent of parents even say their thrifty kids have secretly saved up their lunch money behind their back, to buy something they really wanted.
Despite this, 14 per cent of parents believe their children don’t understand where their pocket money comes from, and 15 per cent say their children think that the money that comes out from an ATM is ‘free money’.
Parents’ own financial education is influencing their kids
When it comes to educating their children about money, Australian parents are learning from their own financial education experiences, with a quarter (28 per cent) admitting that they were never taught about how to manage money as a child, therefore wanting to give their child a better financial start than they had.
What’s more, almost a third (29 per cent) of Aussie parents admit to being in financial debt previously, and want to prevent their child from experiencing the stress associated with debt. Others want their children to learn from their mistakes, with 16 per cent of parents believing they aren’t very good with money, hoping their child makes better financial decisions than they have.
Mario Hasanakos, Spriggy’s Co-founder said, “It’s great to see that Australian parents are actively seeking to raise their kids’ financial skills. When it comes to financial education, the best way to learn is by ‘doing’. We need to empower our kids early, and communicate with them openly and often about money.”
When asked what age children ‘should’ start using money in the real world, 19 per cent of parents believe this should start from the age of five, and 23 per cent suggest over seven years is an appropriate age.
Nearly two thirds (63 per cent) of parents want their children to be successful financially, while almost half (47 per cent) just want them to have enough money to be ‘happy and healthy’.
Preparing for a cashless economy doesn’t need to be stressful
Parents are aware that technology should be utilised as a tool, with a third (33 per cent) believing that technology makes it easier for them to teach their children about money.
“There are plenty of tools and apps out there now that can remove the uncertainty of teaching kids to manage their money in the new cashless economy. With apps like Spriggy, parents have total oversight of their children’s money, allowing families to cement concepts of earning, spending and saving together, in a safe environment,”
Hasanakos added, “The majority of today’s payments are made electronically and this is only set to grow. If we aren’t teaching our kids about the type of money they are going to use, what are we doing? When it comes to money, technology is a tool that can help overcome the practical, safety and educational problems they face every day with their kids.
At Spriggy, we believe that kids should be getting real world experience with money as young as possible, with guidance from their parents, in order to set them up for the best possible financial future.”
*The research is based on a nationally representative survey of 1,000 Australians with children aged 8-17, conducted by Pureprofile in January 2018
