I remember growing up and learning the concept of money. Crisp green bills and shiny coins always caught my attention. My parents got me my first piggy bank when I was 8 years old and since then, saving money has always been a habit of mine. It is important for parents to teach their kids how money works, and the importance of saving so that when they get older they are able to manage and budget their money efficiently.
Digital payments has been becoming increasingly popular because it is quick and convenient. And it is also pretty cool when you use mobile payment apps like Square where you can process a transaction almost everywhere and at any time using a mobile device. However, with the use of digital payments, less physical money is being used. Kids nowadays have games on their Ipads and phones that require them to pay for a subscription, to unlock a better character or weapon, or to purchase game coins. ( A very popular MMO is Club Penguin).When children get a hold of games like this, it is difficult for them to understand what they are actually doing. When they go to buy something off of a mobile game, they do not have to go open up their piggy bank and take out one dollar and give it to a cashier. They do not see how their savings are slowly declining through time. All it takes is one tap on the screen, and if they are heavy gamers, these purchases can accumulate and leave parents with enormous bills at the end of the month. What I am trying to get across is that parents should watch over how much time kids are playing with these types of games, and how much they buy on mobile devices. Parents should encourage kids to keep a savings account or a piggy bank so they can physically see what is theirs, and when they want to buy a toy, they know they will have to lose some of that earned money in exchange. Habits like saving money prepare teenagers when they get their first job,while they are in high school, and when they enroll in college, teaching them responsibility and self-control.
Should digital payments be completely avoided by consumers? Should parents completely disallow their children to visit mobile gaming apps that are linked to bank accounts?
Like any great technology digital payment has the power to do god or bad. I personally love paying with PayPal it is easy, secure, and convenient. I also believe that we are not spending nearly enough time on financial education as we should. Even today many people get themselves in financial trouble with relative ease and I think digital payments will only increase this problem. Avoiding new technology is the equitant of avoiding fire. Just because it’s dangerous it does not mean we can’t learn to control it. I think the solution is to educating our children about financial responsibility so that they can make their own decisions.
ReplyDeleteI, too, grew up in the era of piggy banks. I still have a small problem with saving money at times! I agree with the above statement that more education on financial responsibility could perhaps be an active way to a solution. Digital payments are too convenient to rid of, and a likely decline in profits (especially those that rely solely on the internet).
ReplyDeleteHeather Roberson
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ReplyDeleteHeather and Oleg,
ReplyDeleteBoth of you have great points. Thanks to digital payments, we are able to process transactions so much quicker than 5 or 10 years ago. Which leaves us with more time to do other things, and less wait time on the transactions. The best option to consider is having more awareness in schools and at home through classes and programs to alert parents and children. Therefore, preventing themselves from the gaming "trap" and cost along those lines.
Digital Payments Group
In the same way that kids do not realize what they are doing since they aren't going to their piggy bank to use money... I would venture to say most adults don't either. I don't know about you but it is much easier for me to spend $50 on a debit card than it is to physically hand over $50. I think there is something about physically holding money that lets you understand its value.
ReplyDeleteI do agree that this day in age children are having a hard time learning the concept of money. Without having physical cash, it's hard to understand how much money you have without understanding the concept of a bank account, or savings account. Even today, with me being 21, i prefer to have cash on hand at all times, and I try to spend that before i dip into my bank account and use my debit card. It's easier to keep up with how much money you have without balancing your check book. With advances in technology it has become easier to keep up with your bank accounts by using the bank's online website, or even mobile apps. Even these websites and apps though can take a little while to update and can be misleading to the consumer. I think that digital payments are a very convenient way to pay bills and should continue to be used. I do agree though that these digital payments should only be accessed by adults, and that children should not have access to these.
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