Financial education for children in the digital age

In the digital age, where children grow up with contactless payments, online shopping and electronic wallets, the traditional piggy bank has lost its usefulness. But how can the younger generation learn to manage money when money is invisible? Financial literacy is a vital life skill that starts with pocket money — a child or teenager’s first “small” income. 

Parents/guardians can use this amount as a practical teaching tool to familiarise children with money. It is important to give pocket money regularly (for example, every week) so that children learn to plan their spending and grasp the concept of budgeting. 

Parental supervision is crucial. It’s not about prohibition, but guidance. Parents can talk to their children about how they spend money, set joint savings goals with them (for example, for clothes or toys) and teach them the difference between needs and wants. This combination of autonomy and guidance prepares children and young people for the financial responsibilities of adult life. 

Banks abroad are investing in financial education platforms that link learning with practice. These platforms offer secure tools for managing money under systematic parental supervision. 

Bank of Cyprus adopted this model to create Joey, a specialised banking app that comes with a Visa card. Joey turns pocket money into a controlled educational digital tool, introducing children and teenagers aged 9–17 to financial concepts for the first time. Most importantly, it bridges the gap between traditional piggy banks and modern digital banking. 

Controlled autonomy  

The basic idea behind Joey’s innovative initiative is to strike a balance between autonomy and supervision — a concept known as ‘controlled autonomy’. Children and teenagers get their own card, which gives them their first taste of financial freedom. They can shop and track their spending in real time. They can also set savings goals through the app.  

Parents or guardians can exercise full control via the BoC Mobile App, which acts as a digital guidance tool. Through the connected app, they can: 

  • Set a regular pocket money amount.
  • Receive instant notifications for each transaction.
  • Set spending limits or block transactions at specific merchants (e.g., online gaming or cash withdrawals).
  • ‘Freeze’ the card with a single tap if it is lost or misused.

They can also discuss ways to spend and budget, ensuring that every expense teaches a valuable financial lesson. 

Making education a game 

Bank of Cyprus enhances Joey’s appeal by offering incentives. The ‘Joey Extras’ program offers discounts and privileges at favourite venues, making responsible card use a rewarding game.  

With its ‘Invite Friends’ offer, the app provides a €15 bonus to both the Joeyer who recommends it and the friend who signs up. This ‘smart’ move combines a reward with introducing teenagers to digital transactions. 

There is a strategic investment in financial education behind Joey. The program helps children and teenagers to develop a genuine understanding of budgeting, to distinguish between their needs and wants, and, above all, to manage money responsibly. The digital age is therefore not a fad, but a necessity and a practical framework for fostering financial literacy. 

You can find more information here: https://www.bankofcyprus.com/joey/ and here: https://www.bankofcyprus.com/joey/joey-extras/.