Children should neither become unpleasant misers nor careless spendthrifts, of course. Not as grumpy and petty as your in-laws and not full of worries like your own parents. They never talked about it, after all: you don’t talk about money! However, fear, envy or shame affect how you deal with money – and in turn that of your own offspring.
How do those closest to you manage to bring the topic closer to children in such a way that neither fear nor recklessness is the focus? Various principles help with this. The most important thing: “Be a role model,” say Heidy de Blum, social worker and managing director of the family consulting network familylab Germany, and her husband Rolf Sesselmann, business graduate, tax advisor and financial manager of an automotive supplier, in an interview with Finanztest.
Our advice
Example. Question your attitudes towards money. If you deal with it in a positive, open and enlightened way, you can pass this attitude on to your children and thus avoid fears surrounding the topic.
Help. The Germany-wide network offers professional advice for parents on various topics online and from experts on site familylab Germany.
Question your own handling of money
“Children learn a lot from their parents. This is also why it is important to act and communicate responsibly and well,” says Heidy de Blum. Parents should ask themselves questions like:
- How do I handle money?
- What was it like in my family of origin?
- Were there any debts that weren’t discussed?
- Do I have money worries that perhaps can no longer be rationally explained today?
- What values do I represent when it comes to money and what values do I want to represent?
- Who was or is responsible for the finances in my family, in my partnership?
- How can we find a solution if we handle money differently in a relationship?
If serious problems arise, it is advisable to seek professional help.
Tipp: Can’t quite explain the loss on your account? A budget book, analog or digital, provides an overview of expenses. Finanztest tested 13 budget accounting apps.
Involve the children in decisions
It usually starts at four or five years old; A general store opens up the first experiences with shopping and paying. Later, the children count their coins and think about what they would like to do with grandma or grandpa’s money, for example.
“How do I divide my money? What do I want and what do I really need?” When parents support their children with questions like these, a lot is gained. If the interaction is open, children hear a lot and ask questions. These should be answered openly and in a child-friendly manner.
Tipp: Get your kids involved when you’re saving for something big, like a family vacation, so you’re giving up other things for a while. Talk about it in a child-friendly way, but don’t give the children the responsibility.
Get started with pocket money and learn how to do business
Pocket money is a good way to start your own business. In the beginning, the cents and euros are usually given weekly, later often monthly into your first account. Young people often claim that “everyone else” gets more. Then it makes sense German Youth Institute (DJI) to look. It publishes recommendations graded by age. It wants to update it in autumn 2024.
Tipp: The DJI also offers recommendations for monthly budget money for young people. This is money for fixed expenses in addition to pocket money, for example 20 to 30 euros for eating out. You can manage the budget money as parents or transfer it to your checking account for older children.
This is how much pocket money the German Youth Institute recommends*
When it comes to money, don’t rely on school
Three quarters of young people wanted one in 2021 Study by the Federal Association of German Banks a higher priority for economic topics in school. Particularly important: practical information, for example on tax returns or investments. Such offers are rare. Parents and children depend on committed teachers.
Tipp: Teachers can find free teaching material on consumer and financial education, such as insurance and starting a career, at test.de/schule. Classes can receive the latest test and financial test booklets for class for one year.
Open a child account on a credit basis
Children’s and youth accounts only work on a credit basis. Teens only receive as much money as was previously deposited or transferred. This will help you learn how to manage an account without ending up in the red.
When do you need your own checking account? “There is no ideal time,” says financial test expert Kathy Elmenthaler. “Many offers are available before the age of seven. In the case of minors, both parents must accompany the account opening.”
Tipp: You can filter all 175 youth accounts examined according to various criteria at test.de/jugendkontos; 149 is available without an annual basic price.
Understanding debt and dealing with it properly
Why might it make sense to take on debt to buy a house but not to go on vacation? And why can it be dangerous to pay in installments for things you bought spontaneously via your smartphone? You can find out how expensive the “buy-now-pay-later” function can be on portals such as Paypal and Klarna in the test of installment purchase offers.
Parents should explain the role of debt and interest very carefully. If children and young people grow up without a good role model, the risk of them becoming indebted later increases.
Tipp: Pocket money apps provide an overview and a certain level of control. Get help for serious problems. Debt counseling centers help young people free of charge. Caritas offers young people free financial coaching.
Investing for children. At test.de/kinderdepot you can read how you can save and invest for your children and grandchildren.
2023-12-13 00:57:22
#Financial #Education #Talking #Children #Money
