Children are becoming more savvy* with their cash by saving about one third of their pocket money each week, new findings have revealed.
The desire* to buy items is making them carefully stash* their savings with Lego, smartphones, tablets and Xboxes on top of their priority lists.
The data provided by Rooster Money, an online app which has 300,000 users across 51 currencies* worldwide, holds “virtual” money allowing kids to keep track of their cash online.
Parents can withdraw money from the account and hand over sums of cash to their children.
It also found the top ways children earn quick pocket money include tidying their room, looking after pets and helping with the laundry.
Rooster Money’s chief executive officer Will Carmichael said using online tools to save money from a young age remains important to make sure kids set up good money habits.
“Research shows that habits around money are shaped by the age of seven,’’ he said.
“By giving your kids some confidence and good habits around money, understanding what it takes to be a careful spender, saving towards things and setting goals, you can help prepare them with a framework and a set of rules to make better decisions in the future.”
Listen to David Koch’s advice on how your parents can help you save more money.
Rooster Money statistics show from age four the average amount saved per week by Australian children is $3.99, and this steadily increases to $13.08 per week by the age of 14.
Rising Tide Financial Services’ chief executive officer Chris Browne said any online tools to help kids save is great but the presence of cash in their hands is still important.
“You do need some physical cash, it’s a great way to teach them about money because unless it’s their money it doesn’t have as much meaning,’’ he said.
“A piggy bank is good, it’s hugely visual and it’s also a good idea to print off a picture of the item they want, hang it on the wall and put a graph next to it and say how far along they are with their saving, it’s very motivating*.”
Mr Carmichael said the fact that society is becoming increasingly cashless was also making it harder for children to have a good understanding of the value* of money.
- desire: to long or hope for
- stash: to store, often in a secret place
- currencies: money from different countries
- motivating: providing a reason for doing something
- value: what something is worth
LISTEN TO TODAY’S STORY
- Name the percentage of pocket money most kids are saving each week?
- Name three top ways children are earning pocket money.
- At what age are children’s money habits taking shape?
- What does Chris Browne suggest is a good item to help kids to save money?
- What is one reason it is becoming harder for children to understand the value of money?
1. Saving for something special
Choose three “big ticket items” (eg. Lego, smartphones, tablets, Xboxes) that you would like to buy from a catalogue or shop and write down their prices. Calculate how long it would take you to save up for each item if you saved $2 pocket money each week. What if you saved $5 pocket money each week? How about $9 each week?
Design a graph that you could use to track your savings towards one of these items, as suggested by Chris Browne in the article.
Time: Allow 15 minutes
Curriculum links: English, Mathematics
After reading the article, with a partner, highlight as many connectives as you can find in pink. Discuss if these are being used as conjunctions, or to join ideas and create flow.
QUESTION: Do you spend all your pocket money or are you saving for something special?
In one sentence, tell us your answer. Use lots of adjectives. We don’t accept one-word answers.