Being a parent also means being a teacher — your child’s first and most important teacher. When kids are little, you teach them the alphabet and how to count. As they get older, the lessons become more advanced and involve hands-on coaching. Counting becomes budgeting, spending and saving. While financial literacy is a life skill that kids of all ages should learn, it’s especially important in the teenage years when kids are on the precipice of earning money and paying their own expenses.
The best news is that according to a new study by Mydoh, a money management app for kids and teens powered by RBC, this generation of teens is ready and willing to learn about money. And with tools like Mydoh, kids can practice real-life money management skills to help set them on the path to lifelong financial success. Read on to learn more about how you can help your kids become financially literate.
Do you remember talking about money with your parents? In the not-so-distant past, finances were considered deeply private, and bringing up money in regular conversation was a no-no. As a result, there are generations of people who are afraid to ask questions about money. But times are changing. In a survey of 1,010 Canadian youth between the ages of 13 and 17 conducted by Mydoh in collaboration with Leger, 85 percent of teens said they are open to discussing money with family or friends to learn from their experiences, and to take charge of their financial futures.
What should parents take from this? That it’s time to break out of their comfort zone and have the important conversations their kids crave. Becoming a family that openly talks about money is an important part of raising financially literate kids.
Remember bankbooks and chequebooks? Thank goodness those days are gone. But it’s still important for kids to learn to use the money management tools available to them. Gen Z and Gen Alpha are digital natives who are already using technology in every facet of their lives. Parents can take advantage of this and steer their kids toward a tool like Mydoh, to help them learn money basics.
The Mydoh app is packed with features to help teens learn vital money management skills: helping your child track their earnings and spending, for example, can teach them how to budget. Parents can also assign tasks in exchange for an allowance to help to show kids the value of money. Plus, with the Mydoh app and physical Smart Cash Card, kids can set savings goals, put away money each week, and use their card online or in-store to make that big-ticket purchase, closing the loop on the satisfaction of saving.
Teenagers are often savvier than we think, and the Mydoh survey proves it. The vast majority (80 percent) of teens reported that they are confident in their understanding of money and plan to invest in their future. In fact, more than half said they have already set savings goals for the years ahead. In addition, 86 percent feel it’s important to avoid going into debt.
But it’s not all about money, either. The study also shows that teens these days understand that cash isn’t everything — three-quarters of respondents said that work-life balance will be more important than how much they earn. They also reported that they will look for jobs that align with their values (85 percent), are fairly paid (84 percent) and offer flexibility in the workplace (72 percent). Smart kids, eh?
We all want our kids to grow up to feel confident and successful. Helping them understand and feel comfortable with money is an important step in the right direction. And tools like Mydoh mean that modern-day teenagers are more equipped than any previous generation to achieve financial stability. They’re likely miles ahead of where you were at their age — and that’s a sign that all those years you’ve spent teaching and nurturing are paying off.
Ready to continue the journey to financial literacy? Download Mydoh today.
Legal disclaimer: This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
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