Meanwhile,ANZ is the latest bank under fire – again – for scrapping over-the-counter cash services from multiple Sydney branches. It has previously done the same in Victoria and elsewhere.
Children have determined that cards are more convenient than cash,but they don’t compare when it comes to teaching good money habits.Supplied
And the move follows Macquarie Bank’s announcement in September 2023 that this year it would stop dealing in physical dollars altogether. A Senate inquiry into banks backing away from cash heard more evidence last week.
It’s a big worry for particular segments of the community,especially the elderly, (compounded by patchy internet access),and just because of the heightened tracking – and “future mapping” for marketing purposes – of our money moves.
But my main concern about the end of cash is for our kids.
Notes and coins counted out – whether into a jar,designated for various purposes in envelopes,or tucked away for a bit of bonus tuckshop in a school lunchbox – work for educating children about money.
Jo Abi joins David Campbell and Belinda Russell on Today Extra to discuss teaching kids about money.
Once it’s spent,it’s expended. And that’s the central difficulty:how do you teach your children that something they can no longer see run out?
For now,I use a combination of the digital and physical. Firstly,I pay regular pocket money into their bank accounts,but bonus bits – those they explicitly earn from the harder stuff like washing cars and mowing lawns – are delivered in cash.
This sometimes leads to an instant money exchange:“Can I give you this back,and you put the money on my account?” They have determined that cards are more convenient – no pesky notes or coins to carry and lose!
But my position is that the act of just eyeballing what they’re invisibly using for their expenses is important.
The second strategy I believe is vital for schooling your mini money managers is constant communication about your own earning efforts.
At home,this money expert is often heard to say:“Kids,I’ll be with you as soon as I[file this column/film this interview];I’m just making us the final $x amount we need for the week.”
Now,I used to feel awful about working when they were around,rather than spending time with them. Then,a few years ago,I read a David Beckham interview. I couldn’t tell you where it was but in it,Beckham said he believes it’s important that your kidssee you earning to give them a work ethic.
The penny dropped,and I banked this like Beckham. I take it further,too,to promote financial empowerment. Note those words above:“I am making us the money we need.” Positive,proactive and in control.
A little cash and a lot of communication can set your kids up for a secure future.
Parents need to combat the extreme despondency about the financial future that I’ve witnessed among the high schools students I address,and widespreaddisempowerment about ever being able to forge ahead.
Indeed,new research from Great Southern Bank has found 18-year-olds feel uncertain about their financial futures and 69 per cent of Millennials wish they had set up savings habits when they were still at school.
Two-thirds also regret being frivolous with their money when they were younger,specifically in relation to entertainment,eating out and having a good time.
Note that Ido advocate having a good time. But this is the crucial other side of everybody’s financial equation – spending decisions.
So my third teaching tactic is about assiduous allocation of finite financial resources … and I both model conscious spendingand consciously keep the money chat going whenever I am in a discretionary-spending environment.
Plastic can look fantastic to a child,but unless it’s strictly debit cards,it’s fraught with debt danger for you both.
A little cash and a lot of communication can instead set them up for a secure future.
Nicole Pedersen-McKinnon is the author of. Follow Nicole on, or.
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