Kids are never too young to learn responsibility, and this includes handling money. Teaching our children to handle their funds wisely now can have a great impact on how they will manage their finances when they grow up. There are many ways to do this like using money games for kids, but I prefer something that give them a realistic picture of what's happening in the world, and this virtual family bank called Famzoo is what I've chosen as a tool.
Let us face it, money is an important part of life. We need it if we want to live comfortably and securely. It is also needed for our kids' education, their health and well-being, and their entertainment.
Our children may be young now but, in no time at all, they, too, will be receiving their own paychecks, buying their own food and clothes, paying their own bills, and maybe even sending their own kids to school. How they will manage and cope largely depends on how we train them today.
The conventional way to teach kids about money is by giving them a regular allowance and a piggy bank. Some parents even try to have the young ones create a balance sheet to record their income, expenses, goals, and budget. However, this is usually too tedious and boring for some kids who prefer something more engaging.
Famzoo solves this by allowing the family to have their own virtual bank with an individual account for each family member. You, the parent, are the bank manager and your kids are your clients, and you get to oversee how they use their finances. Depending on the rules you set, you can automate their allowance, pay interest on their savings, offer loans payable on installment, have a payroll for chores (and penalties for not doing their job), and even deduct money from their paycheck (akin to social security contributions) that will go to their savings. In other words, you are still in control even while teaching your kids responsibility.
Meanwhile, your kids can monitor their expenses and savings, budget their money, and split it into different accounts. Again, depending on what rules you set, they can also learn about interests, penalties, and so on.
There are two account options that you can choose from:
· The prepaid card account is a MasterCard reloadable card that uses real money to back your child's Famzoo account. This can be used as a debit card -- to pay for purchases from certain merchants. This option for teaching financial literacy for kids uses a "parent funding card" as the source of funds.
· With the IOU account, you use Famzoo for tracking your children's finances but you keep their money elsewhere. For instance, your daughter hands you $50 that she got as a birthday gift -- you put the money in your wallet but you enter the amount in her IOU account, so her balance is $50. When she asks to have $20 from her savings (and you allow her), you hand her the cash and you log it in her account as a withdrawal. Thus, she will see that there's only $30 left in her account.
Famzoo can be used by kids of all ages. Many parents have seen how their children have become more aware and more responsible about their finances after they started using the app. They also like the convenience it offers as well as the options available, and the fees are reasonable given the valuable experience the service offers.
Money management for kids helps them appreciate the value of living within their means even while they are still growing up. It also teaches them to set up financial goals and find ways to achieve them by saving and investing. Moreover, they can learn about banking, wages, loans and interests, among other things, so they won't fall into the financial traps that many adults are struggling to get out of. There is no doubt that they will appreciate this when they grow up.
I believe our kids are the key to the future of the world and, as parents, we have a lot of influence while our children are still learning and growing. We set ourselves as our kids’ role models. Consciously and unconsciously, we pass on to them what we know, what we believe, and what we value. This is why partnering with parents in teaching life lessons and soft skills to get kids prepared for the world has become my key purpose in life. I hope that through my experience in teaching communications in university and in NLP training and coaching, I’ll be able to equip you with more tangible methods so that you can be your children’s life teacher, too!