As the world becomes more digital and cashless, teaching children about financial responsibility becomes increasingly important. Providing young minds with the knowledge and skills they need to navigate the complexity of personal finance is no longer a choice, but a societal imperative.ALSO READ: Why teaching children financial literacy is importantRecognising this need, Rwandan fintech start-up, HiNia, rolled out a mobile application designed to bridge the gap between theoretical financial knowledge and practical money management skills.The project's inception was motivated by the aspiration to recognise communal voids and resolve them using technology, as stated by Jean Hubert Nkurayija Ishimwe, the developer behind the application and the founder and CEO of the start-up.Upon undertaking research and engaging with various individuals in the beginning of 2023, it became evident that a cultural taboo concerning financial conversations existed in Africa, particularly among young people. Additionally, there was a lack of local solutions for financial literacy and savings for children.ALSO READ: Financial literacy among children and youth crucialStudies show that more than $6.7 billion is lost annually due to financial illiteracy, which means that among other factors, people are making poor financial decisions that lead to poverty, endless debt, and impulse purchase. And yet Africa is the youngest continent, with more than 650 million people aged 17 and younger.“Building HiNia, we wanted to teach children about savings and the value of work, starting at home, with the involvement of parents,” explained Nkurayija. “Parents could use the application to encourage responsible financial habits in their children, such as asking them about their savings before making purchases.”As a fintech start-up, they are aware of the importance of starting financial education at an early age to prepare parents for the future. In line with this, the application focuses on teaching children the value of work, setting savings goals, and allowing parents to manage their allowances.To access the application, children do not set up their own accounts; instead, the task is undertaken by their parents or guardians.“It starts with parents creating accounts for themselves and their children,” explained Nkurayija. “Within these accounts, parents can assign chores and set financial goals with their children, such as buying a PlayStation, bicycle, etc. Both parents can manage a child's account.”The app also allows children to share their savings goals on WhatsApp, where family and friends can contribute. This feature also tracks completed chores, promoting responsibility and accountability in children as they work towards their financial goals.The application targets children aged 7 to 18. Nkurayija acknowledges that some children, as young as five or six, can also grasp the concepts.The app also integrates AI into learning materials and involves parents in teaching important concepts like needs vs. wants and earning money through interactive activities, fostering both learning and stronger parent-child bonds.Nkurayija emphasised that a primary hurdle they encounter involves persuading parents about the significance of utilising the application.“While some parents recognise the benefits, getting them to use it regularly remains a challenge. This relates to the broader issue of financial literacy in adults, which is a big problem. But we are motivated to address this by conducting workshops and raising awareness, especially among parents.“We believe that as our platform grows, more parents will see the positive impact it can have, similar to how people adopted WhatsApp when they saw its benefits. Our goal is for parents to recognise the platform's advantages and become regular users,” he said.ALSO READ: Financial literacy campaign in schools is helpfulAccording to the developer, the application was launched on Play Store in June and already has over 74 users, including some from Kenya, Uganda, and Tanzania.Regarding future plans, Nkurayija pointed out that their goal is to on-board between five per cent of the 650 million Africans aged 17 and younger onto their platform within the next five years.“We aspire to be the preferred platform for parents seeking financial well-being solutions for their children, including savings and entrepreneurship workshops. Our goal is to contribute to building a financially savvy generation,” he explained.Josiane Ukundwa, a parent who started using the app, said that financial concepts are not common in Rwanda, which makes children grow up fearing to talk about money.She added: “This app helps us, parents, to talk about money with our children, especially with the regular wishes they have to buy gadgets.”Ukundwa recognises that there is a challenge for some parents to embrace new technologies but believes that with time, the app will make a significant impact.Eulade Karekezi, another parent, said the application brought a solution to his boy who always asked him money to buy things.“This application helps me buy him things after he has worked for them,” he said.
