If there’s one thing parents of teens would agree on, it's that their teenagers would like us to believe they know more than we do. When it comes to TikTok dances, that’s probably the case. But when it comes to money, we know there’s still a lot for our kids to learn. The teen years are when many kids get a taste of financial independence and go from a weekly allowance to a part-time job. Here’s how Mydoh can help parents teach their kids financial literacy, as well as how to spend and earn their own money.
Start the money conversation with teens early
Raise the topic of financial literacy with your teen, and it’s likely to be met with an 🙄. But, helping teens establish strong money skills early in life through experience pays dividends. Research backs this up. According to the University of Arizona, practice does, in fact, make perfect. Hands-on experience with money prepares kids for financial success. This isn’t to say teens can’t—or won’t—make money mistakes. In fact, making small money mistakes at a younger age could prevent a huge financial disaster down the road.
3 ways parents and teens can use Mydoh
One way teens can practice money skills is by using Mydoh. Mydoh is a Smart Card for kids that comes with a money management app. It’s designed to help teens learn and practice money skills safely and securely. The app has three distinct functions: Spend, Earn, and Play. Because there’s nothing like hands-on experience to learn the value of a dollar. Here’s a bit more about how they work.
If you asked your teen what they think it means to be financially responsible, they probably say, “making money.” And earning your own buck is important (we’ll get to that shortly!); it’s just as important to learn how to manage your spending. This is especially true given how easy it is to access credit. According to Equifax Canada, the average Canadian owes over $73,000. One of the ways Mydoh can help teens practice safe spending is with their own Smart Card.
For teens: They’ll receive their own reloadable Visa Prepaid Card. It can be used online or in-store via Apple Pay or anywhere that Visa is accepted to buy what they like, when they like. This means no more remembering to carry cash or hijacking your credit card to order the latest makeup palette or the newest game release on Steam.
For parents: You’ll be able to view what your teen is spending their money on, and how much. The Mydoh app even lets you react to their spending with encouraging emojis. There’s also the peace of mind that comes with knowing they can’t spend more money than they have. No worrying about your kids digging themselves into a hole of consumer debt! But if your teen does need a top-up of cash, Mydoh has an instant transfer function and funds will be transferred immediately. Plus, you can lock and unlock their kids’ Smart Card, right from the app at any time if need be.
Having your own money in your back pocket feels good. And when you know you’ve earned that money yourself, it feels even better. If your teen is too young to start working at a part-time job in the summer or on weekends, they can still earn money to spend with the Mydoh app. Mydoh Tasks lets parents add one-off tasks or schedule weekly chores. And adding new tasks in the parent’s Mydoh account is easy!
1. Go to the Earn screen in the app and tap on “Add a Task.”
2. Choose a task category or customize your own.
3. Fill in the title (such as dusting) and any additional details (like “Be careful not to break anything”), then mark it as a one-off or recurring task.
4. Set the completion date for a one-time task, or if it’s a recurring task, set the days of the week the task needs to happen.
5. Enter an amount that you would like to pay your child, and tap Create Task!
As tasks are completed, your teen can check chores off in their Mydoh account as “done.” Your teen will only be paid out each Saturday (or as we like to call it: Pay Day) if all tasks are completed. That way, there’s no skirting around doing half of what needs to be done.
For teens: Whoever came up with that phrase “death and taxes” forgot to include laundry. Learning to wash and fold their own laundry and prepare a simple meal are skills that will carry your teen through college and into adulthood. Your teen will also experience the satisfaction that comes from getting paid for the work they’ve done. It’s a little thing called taking pride in what you do.
For parents: Tasks help your teens understand the value of earning money, and you get a dishwasher that seems to load and unload itself. As well as some practice in adulting, having chores leads to higher self-esteem and long-term success in school and life.
Chances are you’re not a money expert. And even if you were, there are aspects to finances that you may now take for granted: investing, understanding APRs, and cryptocurrencies. One of the perks of Mydoh is access to free educational resources. That probably sounds dry and crusty to your 13-year-old, which is why we called it Mydoh Play.
For teens: As well as earning and spending their own cash, your teen can use the Mydoh app to learn money concepts like how to use credit cards, the cost of groceries, budgeting, and the history of money. They’ll also get to do fun in-app quizzes and test their knowledge.
For parents: Each trivia topic comes with a tip to help you get the money conversation started. Ask your child about what they’ve learned and if they have any questions. Help fill in their knowledge gaps, share your own success and failures (hey, we’ve all had them), or learn more about a topic together. Who knows, it could be an opportunity to do a deep dive into the world of Bitcoin or help your teen create a budget to launch their own online business.
Mydoh helps parents give their teens real-world financial experience
We all want the best for our kids. To watch them grow up and succeed in the world.
As your teens become more independent and ready themselves for post-secondary education or entering the workforce, now is the ideal time to give them the tools they’ll need to master their own financial future. Mydoh can help spark your teens’ financial independence with real-world experience of earning and spending their own money. Learn more about how you can use Mydoh as a way to help your kids learn, earn, and save.
This article offers general information only and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or its affiliates.