Kids spent more time online this year than any other year due to the ongoing pandemic that led to the closure of schools and enforced lockdowns. Research has shown that kids spend most of their pocket money on online games such as Roblox and Fortnite. Previously, kids used to spend most of their pocket money buying books and candy. According to research by RoosterMoney, out of 24,000 kids in the UK between the age of 4 and 14, most of them had virtual playing accounts on platforms such as Roblox and Fortnite.
Playing these games would require digital cash for purchasing outfits and accessories for the game characters. Roblox recorded a high number of new users on their gaming platform during the lockdown.
LEGO is another popular game that kids spend their pocket money on. Apart from saving their teeth from cavities this year, research has also shown that kids saved a lot of their pocket money compared to last year. This shows that kids are learning the importance of saving, directly or indirectly.
Most kids earn their pocket money from doing some house chores like cleaning up their bedrooms or even washing their parents' cars. They also get some allowances from behaving well!
According to the Business Insider, the Roostermoney pocket money app educates children on how to save money, and it helps them to track their spending. They can just log into the app to see what they spend their money on, and how much they have saved.
The world is quickly moving into a cashless society or digital money, and we can see that the kids are not left behind! It's also good to know that the kids' saving rates are going up. Teaching kids the importance of saving at an early age will help them to live healthier, less stressful, and happier lives in the future.
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Parents are their children's role models, and if we want our kids to learn the art of saving, then we should be good examples by saving! We can start by having conversations about money and teach them the difference between needs and wants. Needs are the basic things that are essential in our everyday lives while the wants are the extras that we can do without.
Parents can work together with their kids to set up saving goals so they can save up to buy something. This would motivate them to save, otherwise just telling them to save, without giving the reasons might not work. You should also teach them to track their spending by writing down what they buy every day. Lastly, you should provide for them a place to save like a piggy bank or a bank saving account.
Sources: Investopedia, Business Insider, Business Insider