Attitudes toward money, earnings and savings vary between generations – but young people can be even more money-savvy than their parents! Here’s what you can learn from them about your finances.
Admit it: you’re not really sure what FinTech means (bet your kids do). Simply put, FinTech (short for financial technology) is software and technology used in banking and financial services. Young people may have trouble finding jobs and buying properties, but they understand all the benefits of FinTech. Accessing their accounts and financial advice through mobile apps, the internet and constantly evolving digital banking systems, Millennials and Generation Z are out-playing middle-aged parents when it comes to managing their money day to day.
According to statistics released in February 2018, mobile banking among Halifax customers aged 11 to 18 has increased by 40% in just two years. Clearly, young people understand the benefits of mobile banking. The ability to check your balance, transfer funds, view transactions and pay bills on the move through mobile banking gives you greater flexibility. And, as you can use it to set up account alerts, mobile banking helps you manage and control your money more and helps you avoid extra bank fees.
Still giving your kids physical pocket money? They’d probably prefer you to dip into your Google Wallet. Peer-to-peer payment services, such as Google Wallet, allow you to send and receive money from a mobile app or desktop with no costs attached at either end of the transaction. Rather than ending up with pots full of change, it’s a far more efficient and secure way of managing the money that changes hands between friends and family.
In the black
To encourage kids not to get into debt, most children’s current accounts don’t have an overdraft facility - a sensible move that might also appeal to parents who struggle to manage their monthly finances. If you tend to be in the red, your kids would probably recommend a management app to help you get on top of any debt. Debt Manager, for iOS devices, helps you to manage the money you owe and speed-up the repayments all at the touch of a button.
Making micro investments
Being so financially switched on, it’s no wonder the popular Moneybox app was designed to encourage young people to invest their spare change and save money in the long run. The app automatically rounds up everyday purchases to the nearest pound and invests the change in companies like Netflix, Unilever and Disney through three tracker funds. Authorised and regulated by the Financial Conduct Authority, it’s a smart way to manage money – and introduce young people to ups and downs of investments. There’s also no upper age limit, so everyone is welcome
Knowing your worth
If your kids use the iAllowance app, a tool for tracking pocket money, chores and rewards, they’re growing up with a positive work ethic. They’ll learn to understand the value of being paid for their efforts long before they enter the big, bad world of work. Many grown-ups have forget how important it is to be paid fairly for their hard work – and it’s definitely a lesson worth getting in early.