Dealing with money for children is basically an important skill in today’s everyday life in order to get along with society. The child first has to learn that the money doesn’t just come from the ATM.
It is crucial to teach the child how to save or earn money. This is the only way the money can be spent as sensibly as possible. It is important for the parents to explain to the child as early as possible how the connections are made and where the money comes from.
Explain the connections
Children do not yet know that money cannot be spent indefinitely. At first, some questions are relatively easy to answer. The aim is to teach the child how to handle money responsibly. Nevertheless, it is important that the children make their own experiences with money. The child should therefore be given the opportunity to have their own budget. If you consult experts on this topic, pocket money is recommended.
The phenomenon of money
Money is a real phenomenon for a child. The child must first learn and grasp what it means to pay money and the benefits of saving money. The child should of course be allowed to be a child for as long as possible, so it is important not to overwhelm the offspring. Nevertheless, the little ones have to be prepared for growing up later, which should not be missed. Dealing with the money and the associated rules are part of it.
Savings account for the child
The money does not always have to be spent immediately, so it is advisable to open a savings account for the child. In this way, the child can save money and possibly fulfill a bigger wish from time to time. A savings account is therefore ideal in addition to a piggy bank. Bringing money to the bank is particularly exciting for children because it is a real experience. After all, there is even interest in the form of additional money. Depending on the case, certain framework conditions also play a role in the corresponding savings products for children.
Use different investment opportunities
There are free variants for the complex, which are interesting for children. In addition, the bank usually offers a special service for the little ones. It is also an interesting experience for the child to visit a bank branch and see it from the inside. That way it gets a better idea of money. There are classic savings accounts that yield relatively little interest, and there are other options for young teenagers, such as a so-called call money account. As a rule, the child usually always wants to have the chance to dispose of their own saved money. It is therefore not suitable for her to choose a fixed term. With teenagers, however, all banking transactions should always be carried out under the supervision of their parents.
Pocket money for the children
Regular pocket money can also bring the child closer to handling money and introduce it to it. It is the responsibility of the parents how much pocket money it will be and of course, it depends on the parents’ own financial situation, which should be used as a guide. The pocket money is best staggered, depending on the age and maturity of the child. Depending on the needs of the child are to be included accordingly.
Six-year-old children have different wishes than, for example, sixteen-year-old teenagers. Therefore, it is also important to keep an overview of pocket money on a monthly basis. Pocket money should be paid to the child weekly if possible. Youth welfare offices provide guidance in the form of tables, such as:
- 6 years: 50 cents a week
- 6-7 years: 1.5-2 euros per week
- 8-9 years: 2-3 euros per week
- 10-11 years: 13-16 euros per month
- 12-13 years: 20-22 euros per month
- 14 to 15 years: 25-30 euros per month
- 16-17 years: 35-45 euros per month
- from 18 years: approx. 70 euros per month
Depending on what expenses the child should have, this is of course also related to the amount of pocket money. This means that the question arises as to how much pocket money has to be or what has to be paid for with this money. After all, the child should know which costs are covered and which are not. Incidentally, pocket money is not intended to be used by the child to pay for sporting activities or their own food or school supplies, because the parents should continue to bear these costs. First and foremost, the pocket money is not there to buy toys or sweets in everyday life.
Pocket money is not leverage
As far as the child’s psyche is concerned in terms of pocket money, the pocket money should never be used by the parents as a means of pressure on the child, because this does not make pedagogical sense. If pocket money is given, it should not be related to the behavior of the child. It is therefore neither an instrument of punishment nor of reward.
