Almost 1-in-6 British parents concerned about their kids money management skills

A new study from award-winning financial budgeting platform, HyperJar, reveals that almost 1-in-6 British parents are concerned about their kids money management skills as households continue to lean on debt to cope with the cost-of-living crisis. Despite the government’s attempts to alleviate the economic pressures by introducing new schemes, rising living and energy prices have continued eating away at disposable income. As a result, Mat Megens, personal finance expert and founder of HyperJar, explains that a crisis like this can fundamentally encourage people to transform their behaviours around financial management.

The budgeting app found that 45% of British parents are now concerned that their children will have a much tougher time financially, highlighting the imminent need to pass effective money-management skills onto the next generation. Megens explains that there is no time like the present to teach our children positive saving and budgeting skills, and in turn, instilling kids with good money management habits.

Traditionally, pocket money was given to children in the form of a few pounds each week in cash. However, in an increasingly cashless society, Megens explains that this is becoming a redundant approach. The idea of providing a child with a debit card may also seem like a problematic option, but with HyperJar’s specialised pre-paid kids’ cards, any potential dangers are mitigated whilst empowering children to build autonomy over their money management from a young age. Firstly, the card is controlled by parents in their own HyperJar app, enabling them to top up any given amount, set spending limits, monitor transactions and even limit where money can be spent to certain retailers.

Children also have their own version of the app, enabling them to have a real-time view of their spending. Their pocket money can also be segmented into any number of digital ‘Jars’, teaching them how to budget and save for various outgoings from an early age. Whilst most standard banks only offer kids’ cards from the age of 11 and above, HyperJar’s unique offering is available for children aged 6 plus. Crucially, for cash-strapped parents amidst the cost-of-living crisis, HyperJar’s Kids Card is completely free to order and use.

Megens comments: “At HyperJar, we’ve found that parents are becoming increasingly concerned about their children’s financial futures. If there’s a gap in knowledge with adults, it’s likely going to pass down to the children. Typically, a child will repeat what their parents do. So, if a parent is in some kind of debt or trouble, through no fault of their own, their kids don’t necessarily have an example of how to change that pattern.

“We believe there should be more education in general around money management and how to save to help people both on basic topics such as how mortgages or interest rates work, to more of the behavioural stuff like understanding how to create a budget and stick to it. Providing this type of education in a really engaging and empowering way will help ensure that our kids grow up to become responsible money managers later on in life.

“As we live in an increasingly cashless society, it makes sense that the pocket money should also be digitalised in the same way. As a result, kids become familiar with spending by card from a younger age, which can prevent bad habits and careless spending from developing in the future.”