Parents are teaching kids to save money online

Parents are teaching kids to save money online

For a technologically savvy family this new chore system could be a dream.

Other families who prefer to stick to more old school methods could find Chore Scout overwhelming.

Financial technology company Moroku has partnered with Australian credit unions to launch the new app that’s a cross between a digital piggy bank and a savings game.

Children are allocated a pile of coins they can move to a saving or spending bucket — but first their parents have to manage the chore list that will earn them the coins.

The kids have to take photos, upload them to the app to be approved or rejected — with parents getting notifications when tasks are complete.

At the end of the week the parent is notified again that it’s time to pay the child based on the week’s activities — maybe they did all their chores but treated their siblings badly and don’t get their full allowance.

Kids can make a savings goal countdown, see their progress bar and get awards for their achievements. They’ll then get given the cash if they decide to spend it, or it will go into an allocated savings account managed by the parent.

“Because they don’t touch and see the money (nowadays) it’s very, very difficult for them to understand the value of it,” Moroku founder Colin Weir told news.com.au.

“That whole tangible money problem is very, very real and it’s why we’re trying to bring money to life.

“The jury is out but we certainly think because of the Royal Commission there’s an increasing number of banks wanting to create highly customer centric services. On the customer side we are hearing the banks are getting requests from customers to help manage their finances and doing that in the family context.”

Mr Weir said parents were asking banks how they should have money conversations with their children and what constituted an appropriate allowance these days.

“They want to know if 50c is enough to take the rubbish out,” he said.

“They expect banks not only to be a safe place to keep money.”

So far the data Moroku has collected shows the average rule is $1 per age of the child.

Mr Weir said a figure should not be assigned to the task because that created disputes over who went for the chores that earned the most.

He said the piggy bank was better in a digital form.

“It’s way more powerful because you can put (in) all these sorts of controls,” he said.

“When you think about why kids want to spend money, some of it is at the corner shop but the vast majority is online.”

Moroku is a finalist in Australia’s first SingularityU Global Impact Challenge held in Melbourne tonight (Wednesday).

SU is a global platform to identify outstanding entrepreneurs, leaders, scientists, and engineers with the most innovative ideas that can positively impact a billion people in 10 years.

Christina Gerakiteys, co-CEO of SingularityU Australia, said the event was about creating global leaders who were using technology to solve humanity’s grand challenges.

“Instead of all our start-ups going to San Francisco and Silicon Valley they can stay here and we can bring that ecosystem to our country,” she said.

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