Nearly one in four primary school children (23 percent) in the UK have used their parents’ card to make purchases and one in five (18 percent) know their parents’ credit or debit card PINs, research from Prudential has found.
The survey coincides with the introduction of Prudential's new free online educational resource, Cha-Ching, which is designed to improve the financial capability of pupils aged seven to 11 across the UK.
Prudential’s research found children who are allowed to use their parents cards are mainly given permission so they have access to money in an emergency. Parents also argue that it helps them to keep track of what their children are spending. The majority (92 percent) say they set a limit on how much their children can spend.
Jane Rawnsley, group head of corporate responsibility at Prudential, said: “The survey suggests that the way children use and understand money is changing very fast. It’s important that parents and teachers are given the tools to ensure that the opportunities created by digital payment technology are accompanied by an understanding of the responsibilities that come with it.
"That is why we are launching Cha-Ching in the UK, a digital-first financial education programme built around mobile, tablet and online resources which can also be integrated into the real environment of a classroom and home.”
The research went on to show even if spending on contactless cards is rising teachers and parents are worried that relying on contactless cards means children are not learning the value of money. Around 78 percent of teachers and 37 percent of parents say that the rise of the cashless society is damaging to a childs understanding of money.
However, the majority of children themselves (87 percent), still prefer their pocket money in cash.
In the UK, working with Young Money, Prudential has developed the Cha-Ching education website which provides teachers with financial education resources built around animated music videos of how the characters earn, save, spend and donate.
Alongside the videos are supporting lesson plans and teacher’s guidance designed to improve the financial capability of Key Stage 2 pupils.
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