As cash increasingly goes out of fashion, digital savvy children are becoming more familiar and comfortable with digital payments
Nearly seven in 10 (68%) of parents say their children are more or just as comfortable using digital payments as handling cash, according to a TD survey.
Comfort levels increase as they get older with (50%) for children ages 4-7 years old and 81% comfort level for 15-17 year olds.
But with that, increasingly digital savvy children cause parents some concerns.
Eight in ten parents believe that living in a cashless society can have some negative impacts on young people.
Parents worry it is becoming easier for kids to spend money (58%) not realise the consequences of overspending (49%). They also worry it is becoming harder to learn the value of money (46%).
“Kids are becoming more and more digitally savvy. Whether it’s accessing an in-app game for a tablet or downloading music from a sharing site online, children are starting at a younger age to understand the concept of making digital purchases by witnessing their parents’ payment habits – often without realising what it all means,” says Rina DeGrazia, Vice President, Financial Education at TD.
Digital savvy children: conversation needs to evolve
“As the payment environment continues to change, it is important to evolve the conversation of how we talk about money. We need to help kids understand the landscape. And help ensure they feel financially confident to make smart money decisions throughout life.”
In fact, without these important conversations, Canadian parents are concerned there can be negative impacts for their children.
These include: not appreciating the value of money (32%) and not learning the importance of saving
Specifically, the survey shows that over nine in 10 (91%) of Canadian parents feel it is their responsibility to teach their children to use digital payments responsibly.
“Just as they have for decades, kids continue to ask their parents for money. But what’s different is that today parents may find they aren’t keeping that much cash in their wallets,” continues DeGrazia.
“Regardless of how your kids pay to shop at the mall or for online and in-app purchases, it’s more important than ever to help your children keep track of how much they’re spending. And have ongoing conversations about how to manage their money responsibly.”
