5 strategies to raise financially literate digital natives

When Mariam’s under-10 child started demanding that they visit online stores on her mobile phone, she was surprised. Sultan, her son, not only knew which products he wanted, he could also point her to deals and discounts that various sites offered. Research shows that 94% of children born after 2010 already have access to a financial account. Many of these under-16s hold digital wallets (58%), investment accounts (49%), and cards (48%).

Here are ways in which you can strengthen the digital native generation’s financial literacy.

1. More to money than spending:

Data shows that children are making payments at much younger ages than they did previously, spending up to 88% of their allowance, on categories including gaming and retail.

Include children in payments other than shopping. Let them help manage utility payments and fees. Differentiate needs from wants. Use tracking tools with them.

2. Introduce physical money:

The cashless generation enjoys many benefits. However, being overly digital can have real-world consequences, especially when travelling, or as a lifestyle.

Introduce cash and checks in your life, whether for smaller payments, while travelling, or as emergency funds. Handling cash and financial instruments is an important life skill that remains relevant.

3. Teach real-world investing:

Gen Z adults are more likely than others to turn to the internet and social media for financial information, and use platforms and apps to budget, save, and invest.

Talk about differentiating a viral trend from actual expertise. Ask questions about their favorite influencer, or a trend that you see.

4. Introduce tangible assets:

Being a digital native can provide a broad, global point of view. However, it also leaves young people vulnerable to being underexposed to diversified investing.

Introduce diversification in your conversations about money. Let your child accompany you to see first-hand what tangible assets such as gold or real estate look like and how they are managed.

5. Bridge the gap:

Over 50% parents of these digital native children say their children know more about new payment methods than they do. But the parents know from experience that earning and spending money has real-world effort and consequences.

Don’t live in a completely different world. Introduce gamification of savings and money in your household so that everyone talks each other’s money language.

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