Pocket money in the 21st-century takes on all new shape with the introduction of ZAAP which can teach the young digital savvy generation how to manage their money.
According to the OECD, more than 60 per cent of Australian parents think cash is going to play a much smaller role in their children’s lives with digital money to eventually take over.
But without physical cash in hand, how do you teach teens and tweens the true value of money.
This is where ZAAP comes into play.
It’s a digital pre-paid Mastercard wallet for children aged between 8 and 17 which can be accessed using a physical card or a wearable ZAAP band.
Parents can set up a wallet and transfer funds to their child’s ZAAP account.
The child can either use a card or wear the ZAAP band which contains a chip and be used anywhere that accepts Mastercard.
The funds can be spent in-store and online and can be tracked using a companion smartphone app which has different logins for parents and kids.
The app allows the child to view their transactions and balance and set up savings goals and reinforces positive financial behaviours.
It also provides an opportunity for parents to teach their kids about managing their money sensibly.
Funds can be instantly loaded from a parent to their child’s ZAAP account.
Users can choose from more than 50 card designs but also have the opportunity to design their very own card.
“Teaching young Australians about the value of money is more important than ever in our increasingly cashless society,” says Michelle Rowcliff, general manager, prepaid at Zenith Payments.
“Our goal was to create a product that resonated with a digitally savvy generation.
“ZAAP – which is a pocket money product and financial literacy tool rolled into one – enables parents to have an ongoing and interactive conversation with their kids about money while also giving them peace of mind as it is safer than cash and kids can access funds at any time.”
But while ZAAP gives a child financial freedom and teaches them financial literacy there are some restrictions to where it can be used.
The account is blocked at the merchant level from being used in places such as liquor stores, pubs and clubs, taverns and gambling and dating services.
The ZAAP which contains the MasterCard contactless chip is available in three colours – pink, black and blue – and it works at any payment terminal that accepts prepaid Mastercards.
The band also comes with an alternative wearable option which can be attached to their existing watch or fitness band.
Dr Justin Coulson, a respected parenting author and speaker, has partnered with ZAAP to promote the importance of financial literacy.
“Approximately one in five 15-year-olds do not have basic financial literacy,” Dr Coulson said.
“This trend is only going to get worse as we move closer to becoming a completely cashless society.
“We have a responsibility to our children to help prepare them for the financial challenges they will face as adults.
“With Australia reported to have the highest personal debt levels in the world, we owe it to our kids to teach them better habits.
“Products like ZAAP give children the chance to learn about and control their finances in a safe environment, and this is crucial for building strong financial skills for life and build better communication and relationships between parents and children.”
ZAAP is available from www.zaap.com.au from $9.95.
The ZAAP card can use online and install while the ZAAP band can be used to tap and pay in stores.