Cost-of-living crisis highlights imminent need to teach children about financial responsibility, expert urges
As families begin to absorb the financial impacts of the cost-of-living crisis and economic downturn, new research from the UK’s most-awarded money-management app, HyperJar, has revealed that 45% of British parents believe their children will have a much tougher time financially than them. The same study found that 15% of parents admitted they are not passing on positive personal finance skills to their kids. This comes as energy bills, living costs and mortgage repayments continue to rise in line with inflation. As a result, parents have been forced to cut back on indulgences, such as treats and extra pocket money for their children. Mat Megens, finance expert and CEO of HyperJar, explains that whilst younger children may remain blissfully unaware of the current climate, older children will be undoubtedly clued into the effects that the recession has on families. In light of this, Megens warns that there is no time like the present to teach our children positive saving and budgeting skills, and in turn, instilling kids with good money management habits.
Traditionally, pocket money has been given to children in the form of a few pounds each week in cash, however, in an increasingly cashless society, this is becoming a redundant approach. The idea of providing a child with a debit card may also seem like a problematic option, but with HyperJar’s specialised pre-paid kids’ cards, any potential dangers are mitigated whilst empowering children to build autonomy over their money management from a young age. Firstly, the card is controlled by parents in their own HyperJar app, enabling them to top up any given amount, set spending limits, monitor transactions and even limit where money can be spent to certain retailers.
Children also have their own version of the app, enabling them to have a real-time view of their spending. Their pocket money can also be segmented into any number of digital ‘Jars’, teaching them how to budget and save for various outgoings from an early age. Whilst most standard banks only offer kids’ cards from the age of 11 and above, HyperJar’s unique offering is available for children aged 6 plus. Crucially, for cash-strapped parents amidst the cost-of-living crisis, HyperJar’s Kids Card is completely free to order and use.
Mat Megens, CEO of HyperJar, comments on the imminent need to teach children about financial responsibility:
“It’s vital to teach children about budgeting and saving from a young age. A great way to do this is by giving them some responsibility to practise managing their money in a safe way. This can be done by providing them with a HyperJar Kids Card which can be topped up, monitored and controlled via the parents’ version of the app.
“As we live in an increasingly cashless society, it makes sense that the pocket money should also be digitalised in the same way. As a result, kids become familiar with spending by card from a younger age, which can prevent bad habits and careless spending from developing in the future.
“Our data clearly shows that parents are concerned about their children’s financial futures, and providing this type of education in a really engaging and empowering way will help ensure that our kids grow up to become responsible money managers later on in life.”
