Learning starts with pocket money
Children who learn to deal with money at an early age are better at setting goals, and make wiser financial decisions in adulthood. It may not be easy to start talking about money with your child, and therefore, we suggest you to read these simple thoughts on how to do it.
Where does money come from and where does it go?
| Does money actually come from the bank? Tell your child about your job, and explain what you’re paid for. | ||
| Tell them, what are the family's most important daily expenses, and how much of the money is spent on them. | ||
| Discuss the importance of knowing where you spend your money, and what could happen, if you didn’t know it. |
Why can’t we buy everything we want?
| Help your child understand that everything has its cost and that money is not endless. | ||
| Explain that money in your smartphone or tablet is also real. | ||
| Before buying something, always think together whether you really need it or is it just something that you want. It's wiser not to buy unnecessary things. This makes it easier to save even with very limited pocket money. |
Why is it important to save money?
| What would make your child especially happy? Cut out or draw a picture of something that your child would like to buy – this will give them more motivation to save money for it. | ||
| Discuss whether saving can be done quickly, and calculate the time it takes to save the necessary amount to fulfil the child’s wish. | ||
| Tell your child that sometimes things don’t go according to plan, and that is why it’s important to save money just in case, too. |
How much pocket money should your child have?
| About 80% of Estonian children receive pocket money. Regular pocket money is usually given starting from the age of 7, when children start school. | ||
| The amount of pocket money should depend on the age of the child, and the family's financial means. In most cases, the right amount is determined simply by experimenting. | ||
| By giving pocket money, you show your child that you trust them. |
Be a role model
Your child learns from you even without you noticing it. Explain to them that you too plan your expenses, and show them how and what you save money for.
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