Aaron compares cash and debit cards for teaching kids about money. He uses a $6 chore example to show how parents can let kids earn, save, and spend through both physical cash and child Visa cards.
Questions this video answers
Aaron
Diagnostics and Finance Mortgage Brokers
$6
How do your kids access money? Hey, it's Aaron from Diagnostics and Finance Mortgage Brokers. Just on this important topic, let's say your son or daughter comes up to you and goes, I've got this perfect app that's going to help me learn at school. Maybe not learn at school. It's probably a game that they're going to play. And how do you then pull out your $6 in coins and then shove that into the iPad to buy the app? Now you've got six bucks in your, in your coins and you probably should put that into a coin box and things and save that up and put it into bank account. But typically they have to log in and it comes out of your Visa debit card or your credit card, but we won't go there. It comes out of your account. Now you might go, hey, Jimmy, give us your six bucks out of your money box. So you get six bucks out of money box. So in essence, you paid six bucks out of your account, you get six bucks in your pocket. The next thing is you come home from work the next day and you put your change on the, on the desk. And then one of the chores of your, your child is to go and clean up. And you may have a rule that if you find money, it can be yours. So then he finds the six bucks that's his because he's. Or she, because he's cleaned up for you and he's put the six boats back in his money box. They come again and they want to buy another app and they do the same thing. The problem is you're recycling your money now. So how does your child access money now? Obviously, cash is a great thing. Parents, grandparents, great grandparents, providing money for them to go for a special trip to the shop is fantastic. Then they can take their cash out and have the physical exchange of money and get used to that concept. Next off, there are a few companies out there that will allow a child to have a Visa debit card. There's still some work in progress in this area because there's a lot of providers that won't accept the child's card on the platform. But it's a way for them to get allocated jobs to do, to tick off and to get money. And it's also a way that they can have some savings plans and also have access to Visa debit facilities around the place. Recently, experience, my son wanted to buy something and he brought his card along and he was able to tap it off and have that experience of spending money in this day and age. So kids need to learn that money is not also always a physical item, but it also is on a card. And there are some funky things out there. My son has Flash on his, my daughter has Wonder Woman on hers. And they feel like superheroes when they go out and they buy a gift for or whatever that is, or something for them to play with. And get used to using their own money instead of recycling it through mum a day. So cleaning up, making that six bucks back going, they want to buy an app, they give us the six bucks and we inadvertently put it down. And part of their strategy of cleaning up is that they can have the change. It's Aaron from Diagnostic Finance. Really important topic. Have a chat with your kids. How can they do more jobs around the home to earn a little bit more money? Have a great rest of the day.
