New App Teaches Kids How to Earn and Invest Money
Most children aren’t taught financial responsibilities until later in life despite it’s importance. Because many schools don’t educate children about money management, it’s important for parents to make it a part of their parenting journey, to prepare their child for the inevitable responsibilities of adulthood. One of the best ways to introduce responsibility is through household chores.
In recent years, the number of kids participating in household chores has declined immensely. The Bureau of Labor Statistics has stated that this decline could continue in the future with the amount of teens working a summer job hitting as low as 26 percent by 2024. Because kids lead such active lives with extracurricular activities and maybe even summer continued education classes, chores have become secondary.
To help with this, BusyKid is a new app to hit the market that allows parents, neighbors, friends and relatives to assign a child tasks to do and a set value for accomplishing each one. Created by Gregg Murset, the app allows parents to stay on top of their kids’ spending and earnings but still allow them the freedom to learn about finance and savings while working towards their future. To help kids stay involved and prepare them with better work ethics, kids will earns a paycheck every Friday and can decide to spend, save, donate or invest their money by buying fractional shares in today’s biggest companies.
“The user-friendly system promotes work ethic, responsibility, accountability, and smart money decisions” the company’s official BusyKid website explained.
Murset originally invented My Job Chart, an early online chore app to helped him keep track of his kids’ allowance back in 2011. With this new app parents can assign a chore, decide how much that assignment is worth and then send a text to confirm and pay their kids.
Not only does this app help with money management, but in the process it teaches discipline and structure. According to Forbes, there are money management lessons that your child should be learning. From ages 3-5 children should begin to understand the concept of saving and delayed gratification. Ages 6-10 should begin to understand how to spend wisely, and ages 10-13 should begin to understand the benefits of saving and seeing compound interest.
“Parents are the number one influence on their children’s financial behaviors, so it’s up to us to raise a generation of mindful consumers, investors, savers, and givers,” said Beth Kobliner, author of the New York Times bestseller “Get a Financial Life.”
Because money habits develop at a young age, it’s important for children to understand the consequences of the habits. Instead of using the traditional money managing method of labeling jars (labeling one as spending, saving, and sharing), the invention and evolution of technology has provided a new platform for kids to learn about the real world and how to use their money appropriately and wisely before having to enter the workforce blindly.
In addition to assigning household chores, giving your kid a goal to reach is also inspiring for them. If they can actively see how their decisions prosper, they will be more incline to stick with earning money through hard work.
BusyKid is available for purchase for Android and Apple products.