Challenges with teaching children the value of money

Carbon Group Partner and Financial Planner Andreas Kettemann discusses the challenges of financially educating children in today’s virtually cashless society and how to ensure they appreciate the value of real money. The Financial Planning Association has identified a new generation called the “invisible-money generation”, meaning those born after 2000 who generally see money as credit or debit cards, and online transactions, he writes. Andreas Kettemann - news-image


As financial transactions are becoming more about tap-and-go and online purchases, and less about the exchange of physical bank notes for goods, are our children increasingly becoming clueless about the value of money?

In a report released last year, The Financial Planning Association (FPA) has identified a new generation called the “invisible-money generation”; those born after 2000 who more often than not see money as credit and debit cards, and online transactions.

According to the report, 66% of Australian parents believe the rise in digital money is making it difficult to grasp the value of real money, and that they struggle to teach their children about money.

If you want your kids to have a good, healthy relationship with money and be aware of the value, when should you start talking to them about it? Consider these suggestions below:

Pocket money

Decide on a weekly amount of pocket money for your children and give them this physically; i.e. coins or bank notes. Being able to see and touch money makes it easier for young children to start to grasp the value. It’s up to you whether you want to provide this money in exchange for household chores.

The value in pocket money is that children start to learn that you can’t have everything for free. Whilst you’re at the shops and your child asks for chocolate or lollies or a new toy, suggest that they check their pocket money to see what they can afford. It’s a great way to introduce saving and spending, and that you can’t always afford everything.

Communicate openly amount money

According to the survey, 68% of parents sometimes feel reluctant to talk about money to their children, often because they don’t want their children to worry about it. But having open talks about money may lead kids to being more curious, confident and financially literate and encourage more positive money habits.

Create a savings account

When your teenagers start working and earning, encourage them to set up a savings account separate to their deposit account. It’s a great way to get them into the habit of saving early on, and they can also start to understand how interest works.

Charge rent

Are your teenagers still living at home rent free? If they are earning their own money through part-time work, it may be a good idea to charge them rent. It doesn’t need to be a large amount, but being responsible for a weekly cost introduces the concept of paying bills before spending 100% of money on lifestyle.

You could even put their rent in a separate account and give this back at a milestone event, such as when they purchase their first home or get married.

Introduce monetary responsibilities

A similar concept is to make them responsible for paying things such as their phone plan. When they have to pay for it, it makes them more aware of the cost. It introduces managing money and ensuring there is enough money in their account to pay these bills.

As more and more digital methods of payment are introduced, we’re getting closer to payments being a completely cashless process. In this digital age, it’s more important now than ever to be raising financially aware kids. The key is to begin discussions early to give kids the best chance of having positive financial habits.


Partner Andreas Kettemann joined Carbon Group in 2018 as a wealth partner under our Carbon Partner Empowerment (CPE) model. Andreas brings with him a heap of qualifications including a Bachelor of Commerce (Finance and Management), Master of Professional Accounting, Diploma of Financial Planning, Certificate IV Finance and Broking, as well as being a Chartered Accountant (CA). Andreas has worked for reputable firms since 2012, learning a great deal about the financial planning sector. He has worked with professionals in the health industry, and business owners in this time. Andreas’ passion for supporting clients to achieve their financial and lifestyle goals inspired him to increase his knowledge, by continuously furthering his education in the field. As his knowledge and experience in the financial services industry has evolved, his passion for ethical practice has increased. It was the right time for Andreas to contribute to the profession by starting his own business, where he can shape the service accordingly. After hearing about Carbon’s CPE model, he thought it was a perfect opportunity as it allowed him to be part of a young, vibrant and award-winning team. Working with an industry leader in the accounting and bookkeeping field is a huge bonus. Andreas specialises in superannuation and retirement planning, including asset protection, cash flow management, SMSFs and investments. Contact Andreas at or via LinkedIn

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