As a parent, you want to give your child the best possible start in education. You, after all, partly determines how their future will look like. Important in education is to teach children how they can go well with money. What should parents look for when you want to handle your child’s good with money? Think about what your child can and can not give concerning money. Another question that parents often ask is how much pocket money should get a child at any age.
Children need not worry about money
Many parents want to ‘protect’ their children by having them as little as possible in educating them concerning money. Of course, you want your child every need. Some parents, therefore, choose to give their children pocket money and not pay if their children need something. While understanding this response is, it is certainly not a wise choice. Money is not in itself a bad thing for a child, he/she has only learned to deal with it. It is, therefore, important to bring your child here relatively early to meet to avoid such problems in the future.
Teach your child good with money
If you want to teach your child the proper knowledge on money you do need to know how to do this and what you should not do. Some issues surrounding money are important for children to learn about where other information may be less relevant again.
Time is money
Important to teach your child it is the role of time when it comes to money. By your child here deliberately to make you ensure that children often make financial decisions that are good in the long run rather than just provide a short-term thing. For example, for a child’s good to know that if they put 100 euros in the bank for ten years that more long-term yields than gain in 10 years 200 euros. The way to do this is to open a bank account your child. That way they make that interest is credited to the amount saved by them. It is, therefore, clear that savings can pay. This makes children aware of the benefits of saving and can ensure in the future that they, quite wisely, will put a portion of their income on the bench.
What responsibilities they should get
The question remains what to do and what not to leave your child. It is, of course, important that children experience no stress around money. When financial problems within the family are not wise to involve children in this. Well, there are some things you can leave to your child.
Make sure your child already gives from his or her fifth pocket money. Pocket money is one of the best ways to make children aware of money. It ensures that children understand that money is “scarce” and that they, therefore, can not buy unlimited. Also, it provides that children think about how and where they spend much money on certain things. Of course, you are as a parent free to determine the amount of pocket money, but here is also important that this cost is not too high, children need to understand that sometimes make it is a matter of choices. The table below should give an indication of the amount that children of a certain age.
How much pocket money you give your child a week?
|Leeftijd||Bedrag per week|
|6||€ 1,- tot € 2,-|
|7||€ 1,- tot € 2,-|
|8||€ 1,- tot € 2,-|
|9||€ 1,20 tot € 2,-|
|10||€ 1,70 tot € 2,-|
|11||€ 2,- tot € 2,30|
|12||€ 3,- tot € 4,60|
|13||€ 3,50 tot € 4,60|
|14||€ 4,60 tot € 5,-|
|15||€ 5,- tot € 5,75|
|16||€ 5,- tot € 6,-|
|17||€ 5,- tot € 7,-|
|18||€ 6,- tot € 9,-|
Make sure your child opens an account at the bank. The task is not so much about how much money is in this bank account. A bank account gives children the feeling that they have financial responsibility. It also offers the opportunity to learn more about your child the idea mentioned earlier of ‘time is money’ because your child will receive interest on the savings account. You can do this best when your baby is young and also make sure that he or she regularly gets to see how much is left in the account. Of course, it is wise to do to monitor the bank to at least the sixteenth year of life of your child. This can often be linked to your account so you always can.
Talk about money
Lastly, it is still important that you speak with your child about money. When your child is in doubt about a particular purchase, sit together to discuss the advantages and disadvantages of purchase and ask your child if he or she finds that the money worth.
Do not fill the pocket money
How tempting this may be, it is important that your child learns that money is not infinite and that when the money runs out certain things can not be bought anymore. Only if they occasionally can not buy anything because the money runs out, they will learn with money to go.
Do not give too much responsibility
As mentioned earlier, make sure your child does not experience unnecessary stress related to money. It is ultimately just a child. Ensure also that the amount your baby gets his or her pocket money is not too high (the above table is a good indicator).
Make clear agreements
It is important that your child knows where he or she stands. Therefore, it is important to make explicit agreements about how money should be spent and on what. A child between five and eleven has his or her pocket money mainly for fun things like toys or candy. Older kids will maybe also presents and an evening out of paying. Here, make sure that it is evident what is and is not covered by the allowance so your child here can prepare for.