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It seems obvious when you think about it, with technologies like Pay Pass, Pay Wave and all things tap-and-go, studies show we are using ATMs less and less. The question remains, will having cash in our pockets soon be a thing of the past? What will happen to the next generation in this shift from plastic to digital?
Millennials are already seeing the effects growing up in a society that has traded piggie banks for digital banks, gold coins for crypto-currencies, and the generation after them could see a society even less dependent on physical money.
A national survey conducted by the Royal Australian Mint has found parents are concerned society will become completely cashless within the next ten years, leaving the valuable lesson of money management lost somewhere in cyber-space.
According to the study:
- 67% of Australian parents worry that moving to mobile and card payments could hinder their child’s ability to understand the value of money
- New Mums were more concerned than Dads, with 70% of Mums surveyed showing concern, compared to 63% of new Dads
- One of the main concerns parents have is about their children's ability to learn how to save, with 57% of parents fearing a lack of contact with physical money could make it challenging.
- 67% also said they worry money could become an abstract concept for children in the future.
Father of four, 29-year-old Mathew Leach works in the banking sector and understands the struggle of explaining the value of money to his young children.
“The eldest who is a boy and the 5-year-old have trouble saving money as they are very impulsive with their pocket money.
The girl who is 8 has more of an understanding and appreciation of money and spends it wisely,” Mr Leach said.