Learn how to Money Parent: A guide for Asian parents

What kind of money parent are you? Take our 2-min quiz to find out.

This rapidly cashless world is the one our children are growing up in, and they will need to know about digital payments and currency, too. But how do we get the conversation started, and what are some ways to ease them into this digital world?

To help your child better understand the concept of digital money and how these payments work, why not use examples in our daily lives?

1. Link the physical to the digital

Typically, if you are already teaching your child about money, you would probably already be using physical cash and coins. When your child already knows about the concepts of value and exchange, it will be much easier for you to transition into a conversation about digital payments.

You could do this with simple activities like making make-believe purchases at home. Instead of exchanging anything physical for their purchases, your child just has the amounts deducted from a ‘digital wallet’ that they carry around with them. They can be encouraged to do the math everytime they make a purchase so they are aware that their money is decreasing. This is a good time to teach them that though it cannot be seen, it is still ‘real money’ they are paying.

2. Every purchase is a learning experience

Children learn new things all the time, if we are there to help them be aware. The next time you are making a purchase, use it as an opportunity to point out the process to your child: what method of digital payment you are using, how the transaction is made, what securities are in place (pin or passwords), and perhaps even what you might get in return, for example, rewards points or cashback benefits.

Letting them witness the process and know what goes on behind it will help strengthen their knowledge of how digital payments work. It’s also a great time to expose them to all the different forms of e-payments, like tap-to-pay and various forms of mobile app payments.

3. First-hand experience is key

If you think your child is old enough, why not let them experience digital payments first-hand? Their own experiences are crucial to their learning and with you to provide some guidance, they will only become more familiar and adept with digital payments in time.

And there are already numerous child-friendly apps and services that can ease your child into the world of digital payments.

Integrating digital payments into your child’s daily life can be a hassle-free experience with these tools.

Charms and wearables

Since children tend to lose their belongings easily, many parents might understandably be reluctant to give them stored-value cards or a smartphone. So why not let them have a cute keychain instead?

Singaporean company Ezlink launched their line of charms that hold stored monetary value for anyone — including children — to make payments with. These keychains can also be clipped to your child’s bags or wallets to ensure that your child doesn’t lose them. Other than transport, these charms can be used to pay for purchases at various convenience stores and merchants.

Digital wallets

You might be a little apprehensive letting your child enter the world of digital payments, considering how easy it is to get carried away with making purchases. But with digital wallet apps and services like POSB Smart Buddy (Singapore), Vircle (Malaysia) and WeChat Relative Cards (China), or prepaid cards like the Gaica Flex card (Japan), you can still maintain parental supervision over their spending habits.

These services come with a wearable or a card for your child that allows them to make cashless payments at schools or selected stores. They are also equipped with a function that allows you to set daily or monthly allowances for your child, and limits on transaction amounts — a safety net that can help prevent them from overspending.

Plus, you can even keep track of your child’s expenses, which can open up more conversations between you and your child, such about budget management and needs versus wants.

Neobanks

Have an older child and want to give them a taste of adult life? This is where neobanks can come in handy. These are digital banks that are entirely online and can be accessed on a mobile phone anytime, and also require less hassle to sign up for.

FamPay, for example, a neobank service launched in India, allows teenagers to own their own virtual bank account and card. They can transfer money to friends, make online and offline payments, and even enjoy reward schemes.

Don’t worry, it’s not all hands-off: parents still have control over the amount of money their teen has in their account. This means that even with a neobank account, your teen will still be dependent on you for their allowance.

We may be moving towards a cashless society now, but who truly knows what the future has in store for us? As parents, we need to stay up to date on all the latest digital trends to make sure that we do the best for our children. 

Want to try your hand at teaching your child about digital payments? Check out our resources worksheet here.