Raising money-savvy kids has never been easy, but it can be especially daunting in the digital age we live in. We use less and less cash, we can spend almost effortlessly, not to mention the frauds and scams that are multiplying.
How then, in this context, can you help your children learn to manage their money well?
Teaching children about money
How to talk about money to a child between 0 and 6 years old?
Between 0 and 6 years old a child cannot yet read or write. On the other hand, he is already beginning to know how to count. It is therefore possible to give it some “financial” bases, such as:
Learn to recognize the different euro coins and banknotes .
Understand that a 200 naira is more valuable than a 100 naira.
Gently understand the value of things and that a bicycle costs more than a sugar waffle for example.
Start saving with the pretty piggy bank you gave her.
Realize that it is not possible to have everything and that mom and dad’s budget is not unlimited.
This list is far from complete but gives you an overview of the little things that can be put in place in terms of financial education for young children.
How to talk about money to a child between 6 and 12 years old?
From the age of 6, children learn to read, write and calculate. It is therefore possible to get to the heart of the matter and teach them the basics to manage their money well on a daily basis.
So, from 6 years old you can:
Give them their first pocket money , preferably in cash, and thus introduce the notion of savings and the management of a first budget. Try to tell the child clearly what this pocket money is for: treat yourself from time to time by buying sweets or a toy, save for the purchase of a bicycle or another substantial purchase… If the frame is well established, the child will easily be able to enter into the logic of managing a budget.
Set a savings goal with them so that they learn the concept of savings and patience. Make sure that they can reach this goal after a few months with their pocket money and the money received on special occasions (Christmas, birthdays, etc.) so that they don’t get discouraged. For a young child, six months is an eternity.
Explain the difference between a need and a want . The book ” Julie’s pen “, intended for the youngest, can be of great help. Read it together.
As young as they are, it is already possible to awaken their critical spirit . For example, by making them understand that an advertisement aims to make them buy a product.
How to talk about money to a child between 12 and 18 years old?
At age 12, the vast majority of children enter secondary education. It’s adolescence that begins with outings with friends, the inevitable smartphone and the importance of appearance. And so clothes.
This is the right age to start empowering them with money . To do this, you can put several things in place:
Open a first current account. The vast majority of payments are currently made electronically. If your teenager has a student job, his salary will be paid into his account: having his own current account is therefore essential.
He will thus be able to manage his purchases himself without having to always have the sum in cash on him. He will also learn to regularly check the balance of his bank account so as not to see his payment refused due to insufficient balance. And what better than a bank app to be able to easily pay off friends or monitor your budget?
Pocket money can quickly become essential if you don’t want to feel like a permanent vending machine for your teenager. The amount you choose to give him must correspond to the framework you establish with him.
Giving him 10000 a month to pay for all his clothing purchases, his outings and his telephone subscription, that might be a little fair, right?
On the other hand, giving him 20000 without any framework to tell him what you expect of him in terms of managing this budget is very likely not to be very constructive.
How to talk about money to a student?
With studies, your child will be confronted with new financial choices.
To buy a car ? Rent a house? Neither ? It is up to you to determine with him the most judicious solution given the family budget. Do not underestimate the cost of this car.
The issue of study funding is also important. Is he entitled to a scholarship ? Should he finance everything himself?
Possibly encourage him to have a student job so that he learns to cover some of his expenses himself. He will thus have a better idea of the value of the money.
Attention: this job should not prevent him from studying. Extending the duration of your studies because you do a job to pay for clothes and outings is a bad calculation!
Breaking down your family budget together will help your child better understand your financial position.
How to talk about money to your child who is leaving the family nest?
When the child begins to work, new questions of money will appear. Don’t hesitate to talk to him about Wikifin, which will answer all his money questions.
More seriously, here are some elements that should allow you to answer his questions:
Looking for a first job goes hand in hand with administrative procedures. You have to register as a job seeker, take out health insurance and register with mutual insurance.
This may be a good time to check if your current account is still free using our current account comparator .
When the child leaves the family nest, other questions arise:
Renting a home is not trivial financially. It is necessary to provide the guarantee, the costs of the commons, and the amount of the rent of course. Not to mention all the furniture to settle in. In short, all of this costs money, and these questions must be anticipated.
