CommBank study finds kids build more money skills than mum and dad
Kids are becoming better money managers than their parents, according to new research
READING LEVEL: GREEN
Children in Australia are on track to become better money managers than their parents, new research suggests.
A study of more than 4200 households by the Commonwealth Bank has found that eight out of 10 families talk about money at home, 87 per cent of children buy things with their own money and 59 per cent earn money of their own. Two-thirds of children apply spending strategies*, such as waiting for sales, shopping around and recognising wants versus needs, according to the Australian Money Matters Report released by CommBank kids’ money app, Kit.
Kit managing director Yish Koh said the results suggested parents were beginning to understand the importance of teaching financial literacy*.
“We are transitioning* to a cashless society*, which makes it more difficult in some respects,” she said.
“The silver lining* is we now have digital services allowing kids to interact digitally* with their money.”
Ms Koh said today’s Generation X and Y parents did not have as much access to financial knowledge and technology such as apps and websites when they were younger.
“They want to avoid their kids making the same financial mistakes they did,” she said.
Financial literacy and wellbeing advocate* Lel Smits, from the Australian Shareholders’ Association, said parents were more aware of the importance of teaching good money habits.
“Parents still play a crucial* role in teaching their children about money management.”
Stronger money skills in children would lead to increased economic stability*, lower loan defaults* and less financial hardship.
GLOSSARY
- strategies: a plan for achieving something or reaching a goal
- financial literacy: the ability to use knowledge and skills to manage your money
- transitioning: undergo changes
- cashless society: a society in which purchases of goods or services are made by credit card or electronic fund transfers rather than with cash
- silver lining: something good that can be found in a bad situation
- interact digitally: to interact on a remote digital platform rather than face-to-face
- wellness advocate: a health care professional in wellness services, including mental health
- crucial: of great importance
- economic stability: where people have the resources essential to a healthy life
- loan defaults: when a borrower stops making the required payments on a debt
EXTRA READING
Pocket money on the chopping block
Levi rules in junior business world
QUICK QUIZ
- How many households were included in the study?
- According to the study, what percentage of children earn their own money?
- What is the CommBank kids’ money app called?
- What is the ‘silver lining’ in regards to transitioning to a cashless society?
- How would stronger money skills in children lead to increased economic stability?
LISTEN TO THE STORY
CLASSROOM ACTIVITY
1. Top tips
Write a list of top tips to manage your money. Your audience is your parents or other adults.
Time: allow 20 minutes to complete this activity
Curriculum Links: English, Economics and Business
2. Extension
Why do you think digital services are making it harder to manage your money? Write a list of reasons. For each reason in your list, write a solution or way that you can avoid the problem.
Time: allow 20 minutes to complete this activity
Curriculum Links: English, Economics and Business
VCOP ACTIVITY
Mini money managers
Have you heard the phrase ‘the value of a dollar’? Or ‘money doesn’t grow on trees.’
What do you think these saying mean, and why do people say them?
Write a short paragraph explaining what these phrases mean and why they are important. Include why it is especially imperative in a cashless society where it is more difficult to understand the exchange of money to purchase when physical notes and coins are not being used.