Whether as the target group of an advertisement or the recipient of an allowance, young people nowadays are exposed to money and consumption at an early age. Learning how to be smart with money enables them to handle their first paycheck properly and not fall into debt when they receive their first tax bill later in life.
What do “financial education” and “financial literacy” mean?
Financially literate children and young people are able to act responsibly with money. This means that they’re not only capable of drawing up a budget for their allowance or Jugendlohn (“youth wage” in English), but they’re also able to budget their money in day-to-day life. We speak of "financial education" when parents actively help their kids learn about money.
How do I teach my child to handle money wisely?
Parents and caregivers are important companions on this journey. You can create an optimum learning environment and use real, meaningful situations from your child’s everyday life. At the same time, the following five parenting behaviors can have a beneficial effect.