Teach kids how digital money really works, from taps to subscriptions, with a mindset shift, daily habit, and a fun hands-on activity to try at home
South Africa, like elsewhere in the world, is moving away from cash, with most major banks decreasing their ATM footprint nationwide. So digital money and payments are becoming the norm across more and more households.
When we talk about digital money, we’re not just talking about using your debit card to tap and go or your phone to pay with Apple/Samsung Pay. Digital money also includes airtime top-ups, subscription renewals, ride-hailing apps, in-game purchases, EFTs, SnapScan payments, and auto-debits. Essentially, any money that moves between people and businesses, not using coins or notes.
For kids (and even adults), that’s confusing. Without coins and notes, money can feel imaginary.
And when something feels imaginary, it’s hard to manage it well. That’s why your mini millionaire needs help connecting what they see (a screen or a swipe) with what’s really happening (money leaving an account).
Here’s a mindset to cultivate, a habit to form and a tip to try in teaching kids about digital money.
Just because money is invisible doesn’t mean it’s free
In a recent US study, 72% of parents felt that their kids do not understand the value of a dollar, and that for 44% of them, it’s harder to teach them the value of money when it comes to digital money as opposed to cash.
And it’s understandable.
You go to a store, whip out a card, tap on the machine, and off you go with your items. There was no visible exchange of money. No cash changing hands. No visual cue of: I had so much money, now I have less.
And that’s a dangerous way of viewing money.
Takeaway: If kids think digital money is magic, they’ll spend it like it is.
Narrate digital money moments out loud
When you next pay for something with your card or phone payment in store, say, “That just paid for the groceries from our account.”
Or when a subscription renews, say “Spotify just deducted R60 today.” This kind of narration makes the invisible visible and reiterates that these digital payments are, in fact, being deducted from your account.
It also serves as a roadmarker in the broader budget conversation (your mini millionaire does know about a budget, right?). When a digital payment comes off your account, update your budget.
Takeaway: Say what you’re doing. Kids can’t copy what they can’t hear.
Give your mini millionaire a small, fixed amount in a controlled digital format (like a prepaid card, bank youth account, or app wallet) and let kids practise basic spending and track balances, all under your supervision.
Seeing R50 go down to R0 over a week hits differently when it’s their digital money. It builds consequence, choice, and control: three things every mini millionaire (and future spender) needs.
For younger kids, though, while it might be inconvenient, using cash (especially if it’s their first foray into all things money) is a really powerful way to help them grasp basic financial concepts, especially if tied in with our 4 Jars System, where they can see actual money being moved into different jars for different purposes. Not to mention that Spend jar getting empty when they spend all of their cash on an impulse purchase.
Takeaway: Digital confidence comes from digital experience.
Help your Mini Millionaire figure out where all their money goes with the Money Detective. This handy resource teaches kids how digital spending works. From tap-to-pay and app purchases to subscriptions and online orders.
Kids learn to sort common expenses into clear categories, then level up by analysing their own pretend bank statement.
Money Detective turns kids into spending sleuths, tracking every swipe, tap, and sneaky subscription.
Download it, print it out and start tracking those digital payments.
