Teaching children money management with Octopus card

In an era of electronic money, many children have their own Octopus cards and see them as "magic cards" that can give them everything they want.

Since children do not see actual coins and banknotes being exchanged when using an Octopus card, it is hard for them to make the connection between the digital and physical currency. This makes them more prone to spending impulsively. Many parents are concerned that younger children, or those with little self-control, may buy as much as they please when using an Octopus card and end up overspending.

Nowadays, with the popularity of digital money, children generally have fewer contact with physical money. As such, it is important for parents to start teaching children the correct values and concept of money as early as possible. Here are some tips on how to encourage children to make good use of Octopus cards, and equip them with basic money management skills and knowledge.

• Explain the overall usage of Octopus cards and what children can do with them, such as paying for transportations.
• Bring them to top up the value of the Octopus cards with cash and let them see that this comes from real money.
• As children may think only coins or banknotes are cash, you should explain to them that the stored value in an Octopus card is added by mom and dad with cash.
• Encourage children to track their daily expenses through games.
• Remind them to keep their Octopus cards safe.

• Teach children the different types of currencies, the difference between electronic and real money, and that an Octopus card is a form of electronic money.
• Lay down the rules of using Octopus cards: the proper occasions for it, the maximum amount of each spending, the top up frequency, etc.
• Remind children of the purpose of the card, and that it is not meant to be lent to friends for buying snacks, etc.
• Octopus cards should be kept safely as they are as important as a wallet.
• Before making a payment, check the transaction amount. Also check the card’s balance regularly.
• Encourage children to track their daily expenses using a simple table or tool (e.g. IFEC’s Money Tracker mobile application)
• Although you may apply for the Automatic Add Value Service for children aged 12 or above, it is better to let them top up with cash themselves.
• Reach a consensus with your children about the weekly top-up limit, and that their Octopus cards cannot be used irresponsibly. If children overspend on unnecessary items with their Octopus card, do not top up the card for them right away.

More: Digital money learning toolkits