How technology will change the way future generations interact with their money

For many years there have been predictions about the eventual elimination of physical cash as a transaction medium. Some economists view the prospect with delight, looking at this progression as increasing the efficiency of the economy. Others are not so enthusiastic, anticipating that it will be a way for the government and guerrilla marketers to gain access to our private transactional lives. Regardless of one’s point of view, a cashless society is inevitable. In the same way that millennials cannot remember life without PCs, and mobile phones, future generations may never feel the clink of coins in their pockets or have a wad of crisp notes in their wallets. 

The proliferation of technology and its myriad applications will not only change the way we exchange goods and services, but it will change the way we spend and invest our money. The very concept of money is one of the most important creations in human history, and some individuals may want to hold onto their cash like favorite childhood toy - they just can’t bear to part with it. However, in the not too distant future, they will have no choice – they may be able to keep their cash – but they won't be able to spend it. Over the years we’ve seen alternatives to cash appear, grow and then become established, such as credit and debit cards, contactless payment, prepaid cards, and even payment methods that involve the use of our mobile phones by way of Apple and Google Pay. While you still get elements of society vehemently opposed to electronic money the majority of people don’t think twice about paying for groceries, meals or shopping via card or contactless.

The Birth of Digital Assets

One of the more ambitious and interesting alternatives to cash today is cryptocurrency, which started with the introduction of Bitcoin, with new currencies being quickly added to the market. It looks like cryptocurrencies are here to stay and they have added another compelling reason for the elimination of cash. So how do we proceed in such a world where cash is no longer a means of exchange and digital money is the norm, especially when it comes to teaching children the value of money. The age-old practice of giving pocket money and allowing them to hand it over for a special toy after saving up will no longer be a rite of passage. 

Financial Education 2.0

When we were children, we probably owned a piggy bank at some point. These mainstays of basic money management were instrumental in teaching young children the value of money, and more importantly, the importance of saving their money. Piggy banks were the earliest form of financial education for many children and played a vital role in their financial acumen. The era of the piggy bank, just like cash, will inevitably draw to a close as there will be no cash available to fill them. So, how do you replace this valuable teaching tool? Will the concept of the piggy bank and the valuable life lessons it provided be lost forever? Perhaps not.

Even though the way in which we spend and save our money is changing, it doesn’t necessarily mean that we have to replace an approach that has worked for generations. The concept of the piggy bank was effective, and there are tech companies out there who believe that such lessons can and should continue into the digital era. Filippo Yacob, a Forbes 30 Under 30 entrepreneur, is one such believer in the lessons taught by the piggy bank. He is also the Founder and CEO of Pigzbe, a London-based fintech company enabling micro-financing for families by way of products and services that accelerate financial literacy.

He has designed a digital “piggy wallet” that has reinvented pocket money for the children of the digital era. Pigzbe runs on Wollo, a family-friendly cryptocurrency that has been designed to introduce children of 6+ to money management in a digital world. A partnership struck between Pigzbe and global digital payments platform Wirex, will see Wollo listed alongside crypto household names such as Bitcoin, Ethereum, XRP and Litecoin. This underscores the vast potential that this initiative has. Pavel Matveev, CEO and co-founder of Wirex, says “We are really excited about our relationship with Pigzbe, it is an innovative and novel initiative and listing their token fits in with our objective of adding leading edge tokens to our platform. 

Children and their parents will be able to buy, store, spend and exchange their Wollo through the existing Wirex app and Visa card. While projects such as this will provide a fantastic grounding for the children of tomorrow on how to live with money in the modern age, many of the same pitfalls still exist, which means there’s always going to be a place for traditional financial education. After all, be it a tap of a card on a reader, the transfer of Bitcoin, or using your mobile phone to pay for your coffee, the value of money will always be the same. 

It’s refreshing to see some companies thinking ahead of the curve and laying the foundation for the next generation when it comes to financial literacy.