How do you teach your child how to deal with money?

Introduce your child to money 

Financial education is often underestimated. This is very unfortunate, because in practice we see that children who learn to deal with money at a young age will have fewer financial problems later on. But when do you start this financial education? Basically, this already starts under the age of 6 years. For example, when you go shopping together and show that you are paying for a purchase. Or even better if you let your child pay for once. This way, you show that you have to pay for things in the shop. 

You can also turn it into a game element by asking your child from time to time whether a particular product is cheaper or more expensive than another product. This will show you what different products are worth and make thinking about money fun. 

The first pocket money

A milestone in your child’s financial education is giving them the first pocket money. Pocket money is the perfect way to get your child to use a budget. Give the pocket money at a fixed time and clearly explain how long they have to do with this amount. Make clear agreements on what the pocket money can and cannot be spent on. A great age to start with pocket money is 6 years. 

Saving for something beautiful 

From the age of 8 you can introduce your child to saving. At this age, they realise that some things are too expensive to buy directly with pocket money. 

To start saving, for example, you could suggest saving half of the pocket money and spending the other half. You put the savings in a savings account. This will teach your child how to work towards buying something they would like to buy. In the meantime, clearly explain how long it will take before the desired amount is in the account. You can do this by using a savings chart that you can colour together with your child. You’ll find lots of great savings metres online that you can download and print out.

Your own payment account 

When your child is 10 years old, you can give them more financial responsibilities. For example, open a payment account that teaches them how to withdraw money safely. Show step by step how the balance can be checked and regularly review all payments together. Always make sure you keep watching. 

Dress money and dealing with temptations

From the age of 13, you might consider giving your child dress money. Suddenly, they have a larger monthly amount to spend. Explain well that you can't just buy everything you like, but that you also need to think carefully about how much you want to have something.

Almost all children of this age use social media. There are many advertisements, influencers and promotions that will tempt children to make purchases. Make your child aware that this is always a choice that needs careful consideration and that sometimes things are too good to be true. 

Managing finances independently 

From the age of 18, your child is ready to deal with finance independently. Show them how to file tax returns, how it works with health insurance and other financial things that are important when they are an adult. At this age, we often save for large purchases, such as a car or scooter. Of course, you can still help your child to set up a savings plan. But with these steps, you can be sure that you have done everything you can to make your child as independent as possible.