Wednesday, July 13, 2016

Transition Your Kid's Allowance To The Digital World

Today’s fantastic family finance article is:

Piggy Meets Ones and Zeros

There’s an app for this. There’s an app for that.

Well, it turns out this and that now includes allowances and chores. Check out a list of over 30 online allowance and chore management options here.

Why transition from the classic piggy bank filled with tangible coins to a digital solution filled with abstract numbers?

That’s precisely the discussion topic on today’s featured episode of the Digital Dads podcast.

Sure, there’s the convenience factor of automating another routine task for insanely busy parents, but it’s really about something much bigger. It’s about doing a better job delivering a modern financial education to our kids.

A thoughtful digital allowance system, whether it’s in a spreadsheet or an app, will make it simpler to teach your kids critical personal finance lessons like:

  • The effort required to earn a dollar.
  • The importance of tracking spending.
  • The power of compound interest.
  • The pain of debt.
  • The responsibility of paying bills.
  • The effectiveness of goal setting.
  • The opportunity of matching contributions.
  • The wisdom of setting aside saving (and giving!) before spending.
  • The inescapable reality of digital money.

Listen to the discussion in the podcast and see what you think. Weigh in with your opinions on the Digital Dads Facebook group.

Yes, a piggy bank is a good start. But if you don’t move on, your kid will be stuck in the mud when it comes to modern finance.

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