Raising ‘money smart’ kids in an increasingly digital world

Parents today face a very different challenge from those who raised children a generation ago. While many of us learnt about money at the corner shop, children are now growing up where money moves invisibly through apps and wallets. Raising ‘Money Smart Kids’ has become less about coins in a jar and more about preparing them for a digital, fast-changing financial life. 

Why financial socialisation matters 

Children learn in two main ways. The first is by watching. When your child sees you making school-related payments, comparing prices at the supermarket or via your shopping app, they are learning what “normal” looks like. The second is by talking. Open conversations about why you chose one product over another, or why you repay a loan, or have certain insurance, give children tools for adulthood.  

Researchers call it financial socialisation, the process of learning values, attitudes, and behaviours that shape long-term financial wellbeing. The habits that children pick up between birth and age 17 are especially important. They set the foundation for how young people handle money as adults. 

Growing up in a digital money world 

Digital financial services have changed how families manage their money, and the shift is overwhelmingly positive. Today, almost everything can be tracked, paid for, or insured through a smartphone.  

Importantly, you do not need to be a tech expert to raise financially savvy kids. The principles are the same: money has value, debt costs money, and planning reduces stress. What changes is how you model those lessons in a digital environment. 

Practical tips for raising ‘money smart’ kids 

1. Teach visibility in an invisible world. Show your child how to check balances online, track spending in an app, and link digital transactions to a budget. 
2. Link digital tools to real-world lessons. A youth card or prepaid app can be a safe way for children to learn. For example, load R100 a month and help them track where it goes. 
3. Prioritise security. Teach your child that PINs, passwords, and caution online are as essential as looking both ways before crossing the street. Digital safety is a life skill. 
4. Balance tradition with tech. In many homes, stokvels and burial societies remain central. Children should learn the value of these traditional options alongside modern and regulated tools like short-term loans, insurance, or funeral policies. Both play a role in protecting families. 
5. Introduce the basics of credit and insurance. Show them that borrowing is not something to fear, but rather a matter of responsibility. A loan can help in an emergency if repayments are affordable. Insurance is a form of protection that reduces stress when life is unpredictable. 

Passing on confidence, not fear 

The aim is not to raise experts, but young people who feel at ease with money. The best lessons are everyday ones: letting them see you budget or explain your choices. 

You do not need every new app to teach this. What children remember is consistency, seeing careful choices, and honest money talk. In the end, it is less about the technology and more about the example you set. 

* Seyuba is the head of people at digital financial services provider, Finchoice.

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