With apps like Go Henry claiming to help children learn how to effectively budget, we have decided to have a run through the benefits and drawbacks of using technology for financial education
What is the Go Henry App?
The Go Henry App markets itself as an application aimed at increasing children’s financial education. It claims that
“kids learn to budget”
through use of its services. For £2.99 a month, parents can set their children a monthly allowance in the form of a pre-paid debit card
What are the benefits of this?
Parents can set spending limits so that their children have to learn how to budget
Parents can set chores which, when completed, gives their children extra spending money. In a way, this mirrors the “real world”, preparing children to get used to having an income and expenditures
The app allows parents to maintain full parental control yet also gives children the freedom to make their own financial decisions
It is also a good visual way for children to see their money in one place, as the app has a pie chart showing spending habits, so that they understand how they are proportionately spending their money
What are the drawbacks?
Parents can block and unblock cards, and whilst this sounds like a positive, it really just defeats the whole purpose of giving children financial freedom. Parents can also give their children more money through the Go Henry App when they run out. This will only serve to make children accustomed to the idea that there will always be a reserve of money when they run out. Therefore, they may be more likely to use their overdraft when they are older and get their own bank account. This said, the top-up is limited to once a month per child
The card on the app works like a regular debit card so it is difficult to see its usefulness. If it was a free app this would be more understandable, but for £2.99 a month it seems like a bit of a waste of money
There is already a problem with children becoming too reliant on technology. Sometimes it isn’t completely necessary for them to be using it- why use an app when you can just use a debit card? There is something to be said for teaching children how budget with their pocket money in real coins and notes, as it can actually help with their mathematical skills. This said, with almost everything being online now, children will have to become accustomed to things like online banking, so perhaps this is just preparing them for the realities of later life
Why not a hybrid approach?
Perhaps technology should be used in conjunction with financial teaching. This would ensure that children become financially literate, yet also gives them a chance to apply these skills in their spending, with apps like Go Henry. This blended learning is important so that children have personalised instruction and as teachers, we can track their progress and their understanding of financial matters
Red Star has an online course so we are staying up to date with the latest technologies. We also have online systems like our Budget Calculator which is useful for those who prefer the techy side of things! However, online apps alone are no match for our in person, expertly led, financial education services which teach children that finances are more than just numbers on a screen