What are some finance-themed games
The first pocket money and the first sweets you bought yourself at the kiosk may still be funny. But dealing with money is a serious issue. These 7 tips will help children and young people deal with money correctly.
If you want to become a master, you practice early. This also applies to dealing with finances. If Hans doesn't learn that, it will be difficult for Hans. Those who have their finances under control live more relaxed.
We all go to work to make a living. Of course, the focus shouldn't be on money, but it does. Not much happens without money. Interestingly, the topic of finance, although central, is not really addressed in school. It is up to the parents. And that's why we have to take this matter seriously, because if the child cannot handle money, it will have a hard time in life. No matter how comfortable the financial situation is.
Children get an initial awareness of money while playing. In the grocery store, for example. Goods for money. And when there is no more money, there are no more goods. Very easily. Or the Monopoly. The classic. Here the child learns that they have to divide up the many grades that are given at the beginning of the game. Otherwise it will be done quickly and funny. Like in real life.
For the child, real money is still abstract at first. Because it's just there at first. The parents have it. Parents can buy things, the children can use the money to make wishes come true. Where it comes from is not of interest to the child. The children are not yet aware of the connection between work and money.
For this reason I consider it important that Openly talked about money in the family becomes. That we show the children how we handle money based on our own purchasing decisions. That we show that some things are possible and others are not. That they see how we calculate, allocate and also save. Children learn through observation.
1. Pocket money
A first step into practice is pocket money, which we have now also introduced for our youngest daughter, as she has just started school. She gets 1 franc a week. That is not much. But a start and manageable. And enough for the first little things.
Our 11-year-old daughter gets 25.- a month.
It is recommended that the pocket money be paid out weekly up to around 9 years of age, so that the children can initially plan in shorter periods.
- from 6 years: 1 .- / week
- from 7 years: 2 .- / week
- from 8 years: 3 .- / week
- from 9 years: 4 .- / week
- 10-11 years: 25.- to 30 .- / month
- 12-14 years: 30.- to 50 .- / month
In my opinion, the agreed pocket money should be paid out on a fixed basis and not as a means of reward or punishment serve.
In addition, with pocket money, even if the child looks at us with big eyes, never give an advance or credit. Otherwise the learning effect is gone.
If the first pocket money is in circulation, the finances should be discussed again and again, from now on the child learns very concretely. It has its first own experiences with the limitation of money.
2. Be a role model
As everywhere, we are our children's role models when it comes to finance. When I compare products on a regular basis, you don't just get random access. A drink in the supermarket also costs less than at the kiosk. And I usually have a bottle of water and a few snacks with me so that we are well equipped on the way. I myself take care not to waste money pointlessly. The children know that.
I also generally prefer to buy less, value good quality, something that lasts longer, which in the end I have more of than if I have to constantly buy something new. When I see things that I like but that I can't afford, don't want to, or don't necessarily need, I briefly address: “It's nice, but it's too expensive for me”.
I address which purchases are really necessary. Design my consumption behavior according to my income. And I have a relaxed relationship with things that I can't have.
3. Learn to deal with desires
Although I couldn't say that our children lacked anything, we made sure from an early age that they usually only receive presents on their birthdays and at Christmas. And that a toy does not end up in the shopping cart with every purchase. Of course, every now and then a little something, something that is actually used, makes sense and is fun, there was also something in between. But they learned early on that you can't - wham - have everything you see. So the children have always devoted themselves to their wish lists with great care, carefully thinking about what they REALLY want to have. The wish lists were therefore always correspondingly modest.
I think that with this we laid a first foundation stone, a first awareness of the value of money, the value of an object. They have learned to wait, to weigh up, to filter out the really longing desires.
Those who know that they cannot have everything will also be able to deal better with their wishes in adulthood. Realize that not every status symbol has to be your own IMMEDIATELY. And also develop the self-confidence that it does not necessarily have to have this status symbol, that it does not define itself through it.
Style and self-worth cannot be bought.
I once got one 30 day list read. By first putting your wishes on paper and then checking 30 days later what REALLY needs to be bought. So a lot can be crossed off the list again. You can then save on the long-running favorites on your wish-list.
4. Overview of finances
Since you can only spend as much money as you have, it is essential that the child learns to get an overview of his finances on his own. Whether professionally in Excel, using an app or oldschool in a household booklet does not matter.
The main thing is that the child sees and realizes how much is coming in and how much is being spent on what. Ideally, it should now start to compare and weigh up. Where can the comic book be found cheaper? And do I really need it? Could I borrow it too? Does this expense make sense given the revenue?
Having your finances under control and knowing exactly how much is there saves a lot of stress.
5. Learn to save
With a pretty money box that gradually fills up, it is easy for young financial beginners to get started. The first pocket money usually falls victim to the candy department at the next kiosk anyway. That is a first simple and practical Money for performance or. Money for product-Exercise.
Over time, the desires get bigger. Things are more expensive. If at some point the child defines a specific savings goal and saves in a targeted manner, then saving will be easier, it will make sense, and the child will be proud if after a while they can fulfill a greater wish themselves.
It is important that we support the child insofar as we remain tough if they want to have money advanced.
6. Your own account
At the end of the month, the handover of pocket money was forgotten again and again, especially in the beginning. Or we just had no cash or only large notes. A year ago, for the sake of simplicity, we set up an account with an EC card for our 10-year-old daughter.
With a Viva Kids account at Credit Suisse and the Digipigi app, the child always has an overview of the finances in the account and is always with the EC card liquid. We parents can set child-friendly limits, accompany the child and ensure that the child does not overlap.
In addition, the child benefits from interest if they have their own account. You can explain this to the child in such a way that the bank adds something for every franc saved - which can have a motivating effect. With a Viva Kids savings account, the child receives interest of 5 percent on the first 1,000.00.
Since digital money is becoming more and more important, it is important that the child learns how to use a debit card responsibly. And that we parents keep asking how things are going with the account and the card.
7. Digital and cash
It's easy with the cash in the money box. If it stops jingling, the money box is probably empty - or filled with lots of bills. Cash can be counted and paid directly with it. It's tangible and real. You give money and get something for it. The classic swap.
When we pay online or by card, this swap is less expressed. The flow of money remains invisible. Therefore, we parents should explain electronic means of payment to our children in detail. Also because digital spending is easier if you don't push the notes over the counter yourself, but just type in a few numbers.
So the child should understand how the principle works. What function the card has. That the money is withdrawn directly from the account and that there is less then. Just like with cash. What's gone is gone.
The golden rules
- There is no gambling for money!
- Money is neither borrowed nor pumped into anyone!
- You have what you have, no more, no less!
- Debt is taboo!
- Always have your own financial situation under control!
- Calculating, weighing, calculating. What can I afford and what not?
If you want to take up the topic of money in a playful way, you will find 5 facts here that will amaze your child.
How do you approach finances with your children? Do you talk about it openly? Do you have specific guidelines? Have you encountered any difficulties?
This contribution was supported by Credit Suisse Viva Kids. All views and content are my own. More on the topic of saving and children, the Digipigi and financial education in general can be found in the saving dossier. There are inputs for children on the subject of saving as well as some interactive games on the Viva Kids-World website. Everything there revolves around encouraging children to be more conscious of their money, and here parents can also find in-depth articles and expert opinions on the subject of financial education.
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