Pocket money has evolved from just coins and notes to the digital realm. With more parents opting for digital allowances for their kids, experts emphasize the need for teaching online safety alongside financial literacy.
As highlighted by Khaleej Times, many parents find e-money more practical and convenient. However, while digital money offers children a sense of financial independence, cybersecurity should be an integral part of financial literacy, as advised by Kaspersky, a global leader in cybersecurity and digital privacy based in Russia.
A 2024 survey by Toluna, commissioned by Kaspersky, revealed that 76% of children own smart devices like phones or tablets. Additionally, 31% of parents experienced financial loss due to their children’s online activities, and 19% reported their child’s device contracting a virus.
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Experts recommend that parents use child-friendly bank cards or digital wallets to monitor transactions and restrict certain categories. Installing a cybersecurity solution is crucial, as online stores can be vulnerable to cyber threats.
Kaspersky experts also suggest enabling two-factor authentication (2FA) for apps involving online purchases. Teaching children the significance of strong passwords is essential for safeguarding their finances and online presence. Using a password manager can also provide a backup if access is compromised.
“When discussing financial literacy for kids, we must go beyond budgeting or saving,” stated Emad Haffar, Head of Security Consultant Team, Meta at Kaspersky.
Emad Haffar. Photo: Kaspersky
“Their money is already digital, initiating their financial decisions online: in games, apps, and digital wallets. Without cybersecurity awareness, these lessons are incomplete. Teaching kids to identify scams, secure their accounts, and use safe payment tools is as vital as understanding the value of money,” he concluded.
