Children’s financial literacy starts with small everyday habits

“Children come into contact with money-related decisions very early on. It is important not to postpone these conversations, but to use everyday situations as learning opportunities,” Maaring says.

According to her, financial literacy develops over time through small everyday habits. A good place to start is with simple topics, such as how to compare prices in a shop, why it is not possible to buy everything one wants, and how to plan pocket money so that it does not run out in a single day.

“Children learn best in real-life situations. For example, you can give a child a small amount of money and let them choose what to buy in the shop. Even if they do not use the money wisely at first and buy something impractical, that too gives the child an important lesson for the future,” she explains.

Clear goals help build the habit of saving

The ability to set money aside and think further ahead is one of the most important money-related skills to teach a child. Maaring emphasises that the habit of saving and putting money aside should begin in childhood, as this is when the strongest behavioural patterns for life are formed.

“The size of the amount does not really matter. It makes no difference whether a child has five or ten euros. What matters is consistency. If a child learns early on to put some money aside, they develop a better understanding of how to move step by step towards bigger goals,” she says.

The idea of saving is easiest to understand when there is a specific goal, such as a bicycle, a phone, a summer camp or another bigger wish. This makes saving much more tangible and motivating for the child.

Alongside the traditional piggy bank, children should also learn to use digital saving solutions. A good starting point could be a savings account or a children’s deposit account, where part of their pocket money, birthday gift money or extra income earned during the summer can be directed. “When a child sees that the money they have set aside grows over time, it also helps create their first understanding of interest and how long-term saving works,” she says.

The ability to earn money develops early

In addition to saving, it is important to talk to children about how to earn extra money. “Financial literacy does not only mean limiting spending. It is just as important to understand where money comes from and what kind of effort is needed to earn it,” she emphasises.

Summer is a good time to teach financial literacy, as children encounter more situations where they can use money themselves and make their own decisions. In addition to giving pocket money, parents can encourage children to earn extra money through small jobs. For example, they can help with gardening, take on extra household tasks, or help relatives and neighbours. This gives children a better sense that money does not appear on its own, but that earning it requires time and effort.

Maaring recommends thinking carefully about which activities children should be paid for. For example, it is not sensible to pay children for keeping the home tidy every day or for getting good grades. “It makes sense to give money for activities where the young person shows initiative and a willingness to make an extra effort, whether that means mowing the lawn, walking a neighbour’s dog, taking back deposit bottles and so on,” she gives as examples.

The main point is that the child learns to better understand the value of money and the impact of their choices. Maaring stresses that people value things much more when they have had to make an effort to get them.

Teach your child how to use money safely

In addition to saving and earning money, children should also be taught how to keep their money and personal data safe. There are more and more scams circulating online and on social media, and young people may find themselves in situations where someone tries to trick them into giving away their data.

According to Maaring, children should be taught early on that passwords, PIN codes and bank card details must never be shared with anyone, and that they should always be cautious when opening links.

“Scammers often try to make people act in a hurry or create the feeling that something must be done immediately. Children should be taught that in such situations they never have to decide alone. If something seems suspicious, they should always check with a parent,” she says, adding that the more aware a child is, the easier it is for them to notice and avoid suspicious situations.