We’re fast becoming a cashless society. Many of us pay for our shopping with debit and credit cards and check our balance on our mobile phone. While it’s quick and easy for us, it can be tricky for children to understand that we’re spending real money.
What’s in this guide
How to explain digital money to children
Even very young children can learn about how digital money works.
You can start by explaining the basics, such as:
- digital money is a way of paying for things without using cash
- you can pay with your phone, card or watch
- phones have an app on them that connects to your bank account (show them the app on your phone)
- cards take money out of your bank account through a card reader (show them next time you use contactless)
- your bank account is where you keep your money
- you can also use an app to move money from one account to another and pay for things you buy online.
Use a gift voucher
Get money out of a cash machine
Next time you draw cash out from a cash machine, talk your child through what happens:
- explain how you keep your PIN safe and why you don’t tell anyone your number
- tell them how much you’re getting out and show them the notes
- get a receipt so they can see your balance go down.