When teaching children about Money Management, many parents find it hard to explain to their children on how digital purchases work. This is due to the fact that in digital purchases the children are not able to see the physical money being exchanged. In today’s world, digital transactions are almost dominating all fields of buying and selling. Some of the common myths in children about digital money include:
An ATM card can be used to access free money from ATMs.
It is free to watch movies on parents’ smartphones and tablets.
There is a person behind the walls who give out money at the ATM points.
In order to allow children debunk all these myths and adopt the facts, it is very necessary for parents to teach their children on how digital money work. Here are some tips that the parents can use to teach their children:
Involve children when buying items online
The best way for children to get the basics right is to let them participate in the buying process. You should invite the children and browse with them the websites that offer games online. After you open the websites, let them see the prices of the games before you start downloading. They will see how money will be deducted from your credit card from where they will know you really spend to get the games. Because they were the one who asked for the games, you can let them refund you the money from their weekly pocket money. This will enable them know how money is spend while buying online.
Let the child accompany you to the ATM
In order to make the children understand how the ATM work, you should let them accompany you to the ATM. At the ATM you should tell them that there is nobody behind the walls but the machine work electronically to link you to your bank account. This way the children will understand the money that you withdraw from the ATM is from your family savings.