In 2025, money doesn’t always feel real. With tap-to-pay, virtual wallets, and auto-renewing subscriptions, today’s kids are growing up in a world where dollars rarely change hands – and money can disappear with a swipe, tap, or click.
As parents, that creates a new challenge: How do we teach children the value of money when they rarely see it?
A recent article from Northeast Ohio Parent explores exactly that. Here’s how to raise financially savvy kids in this digital-first world – and how you can use tools like a UTMA account to give them real financial confidence for the future.
💳 Why Cash Doesn’t Cut It Anymore
In many households, cash is no longer king. Families are paying with phones, setting up subscriptions for everything from games to meal kits, and managing spending through apps. Even allowances are being sent digitally.
The problem? Kids may know how to spend, but not how to manage. Without the tactile experience of cash, it’s harder for them to grasp:
- Where money comes from
- How quickly it can be spent
- What it means to save intentionally
- The difference between “available” and “earned” money
🧠 Digital Spending = Real Lessons
The good news is that digital habits can become teachable moments – if parents are intentional. Here are a few ways to help kids build financial awareness in a cashless world:
- Narrate your spending: When paying digitally, explain what’s happening. “We’re buying groceries, and it’s $92. Here’s how that fits into our budget this week.”
- Create visibility: Use visual tools like spreadsheets or dashboards to track spending together. Let them “see” where money is going.
- Link effort to outcome: Tie chores or tasks to real-world earning (even if digital) so they associate money with effort, not magic.
- Set digital boundaries: Teach kids how to manage subscriptions and recognize recurring charges – this is one of the fastest-growing sources of hidden overspending.
💡 The Next Step: Teaching Growth, Not Just Restraint
Once a child understands how to manage money, the next step is learning how to grow it. This is where savings turns into investing – and where digital learning can meet real financial opportunity.
A UTMA (Uniform Transfers to Minors Act) custodial account allows parents to invest on behalf of their children. Unlike a savings account, these funds can grow over time through diversified investing – and can later be used for a wide range of expenses like:
- A laptop or camera for a creative project
- Travel or study abroad
- A first car or trade certification
- Starting a business or funding a gap year
By combining early digital habits with an account that reflects real-world value, you’re not just teaching restraint – you’re teaching long-term planning.
🚀 Start Small, Stay Consistent
At UNest, we make it easy for families to start investing with as little as $25/month. That small monthly habit, paired with open conversations about money, helps turn passive spending into purposeful financial literacy.
Whether your child is earning digital allowance or just curious about what a “budget” means, the best time to start teaching money skills is now – and the tools you use should reflect the way the world really works.
