Pocket money pay off

In an increasingly cashless society with large amounts of product marketing aimed at children, RACQ Bank has warned it was more important than ever for parents to educate their kids on how to save, and spend, their pocket money.

RACQ Economist Susan Furze said a recent RACQ Bank survey found 90 percent of parents provided some financial education to their children.

“Pocket money provides a tool for parents to teach kids about making important financial decisions and being conscious about the difference between saving and spending,” Ms Furze said.

“Our survey found nine in 10 parents provide some financial education when they distribute pocket money, and there’s a definite focus on saving.”

Ms Furze said 60 percent of parents reported insisting their children save at least some of their pocket money and the same number said they influenced what their child spent the remainder on.

“Pocket money provides many teachable moments,” she said.

“As society becomes increasingly cashless, it’s more important than ever to teach children the fundamentals of budgeting, saving and smart spending.

“We don’t want kids to think they can buy anything with the tap of a card or smart watch and not understand where that money comes from, or the consequences of how much they spend.”

Parents could access a list of savings ideas for children on the RACQ Bank website.