Our kids need to learn how to manage money in a totally different way to how we did. But we can’t fail them.
A colleague told me recently that her ten-year-old is a little too familiar with “digital currency”.
“He spends all his pocket money on Robux,” she said. “He takes out the recycling and empties the dishwasher, then buys ‘skins’ for his ‘avatar’ … the money disappears so quickly,” she worries.
Robux is the online currency used on the popular gaming platform Roblox – money digitised, like crypto.
It’s yet another example of how cash as we once knew it – notes tucked into wallets or coins dropped into piggy banks – has morphed into cards, digital wallets, auto-fill payments and in-app currencies.
For many children nowadays, money is no longer something they hold (and hand over at the corner shop for lollies). It’s something they tap, click and scan. And as money becomes increasingly frictionless, understanding its value and building self-discipline around it, becomes harder.
That’s why financial literacy for kids now has to go well beyond budgeting and saving. Here’s what I think we need teach kids about money in the digital economy.
More than restrictions
Australia has strengthened its social media ban for under-16s with tougher enforcement and higher penalties for tech companies. It’s an important step, but it only tackles part of the online safety problem.
Many of the digital spaces where children spend time, including gaming platforms such as Roblox, which sits outside the ban, combine social interaction with sophisticated spending systems – from virtual currencies and rewards to constant prompts to upgrade or buy.
One argument is that children are too young to be exposed to this kind of commercial manipulation. That may be true, but I’m a finance guy, not a parenting expert – so regardless of policy upgrades, I think we still need to teach kids digital financial literacy.
This is because even if they aren’t online, they are learning about their world – one where money is invisible and there’s no pause before the tap.
They see when:
You pay for coffee on your phone, tap at the supermarket, fill up the car at the pump, and order something on Amazon at night on your phone while on the couch.
They’re also learning about consumerism simply by observation. Every parcel at the door is more proof that wanting is constant.
And they need our help to make sense of it all.
6 Digital financial lessons to teach kids
We can equip children for the digital economy through everyday conversations and living by example. Financial literacy is less about instruction, and more about building on awareness and learning on the go.
Here are a few ways:
Making digital money real
Help your kids connect in-app purchases with time and effort. For example:
“That’s about what you earn washing the car.”
“That’s two weeks of pocket money. Still think it’s worth it?”
The goal isn’t to say no to every purchase. It’s to encourage them to see the value in the effort they put in to earn money – and think about spending it wisely.
Introduce the “pause” trick
Kids are growing up in a “now” world, where everything is immediate – especially online. Digital environments are designed to reward immediacy and deliver instant gratification.
“Buy now, pay later.”
“Order in the next hour and get it tomorrow.”
Introducing a 24-hour delay – a “sleep on it” rule – puts a speed bump in spending. Most “must-have” purchases lose urgency with time. That’s true for adults too.
Ask thoughtful questions
“How will you feel tomorrow if you buy this and your balance goes down?” – gets them thinking about the bigger spending consequences.
“If you had to wait a week to get it, would you still want it?” – encourages them to think beyond momentary excitement.
“What is this amount of money worth to you? A week’s pocket money? A new soccer ball?” – puts the value of money into context.
And importantly: “Do you really want this – or is the game making you feel like you should?” – teaches critical thinking and helps build consumer awareness.
Spend time online with them
“This platform is designed to encourage spending through rewards and urgency – see here, and here. It’s built to make us want to spend.”
What you’re doing here is stepping into their world with them, and encouraging them to spot consumer pressure while you’re there, having fun.
Let small mistakes happen
A low-cost regrettable purchase is often a more powerful lesson than repeated “don’t waste money” warnings.
Don’t replace lost in-game credits or top up funds when they’ve been spent impulsively. Let them feel the consequence, and then have them earn it back.
That experience is what builds money judgment next time.
Pocket money budgeting
Help your kids budget and save by allocating pocket money to spending groups:
‘Savings’, ‘digital spending’, ‘in-store spending’, or more specifically: ‘bike riding treats’ ‘savings goal’ etc – so online purchases don’t automatically swallow everything by default.
Real-world costs
The truth is, like it or not, children’s understanding of money is being shaped by the world they’re growing up in, not the one we did. And in today’s increasingly cashless society money takes many digital forms.
Kids need to learn not only how to recognise it, but also how to manage it and protect it.
Because Robux – or a tap – is still real money.
