Money is not “an adult thing”
There are those who receive money for extra jobs, those who have a fixed weekly allowance, those who ask for money only in case of need. There are many ways to teach the value of money to children and teenagers and sometimes understanding which is the most educational and at what age to start doing it can be a real challenge.
It is thought that money is an “adult thing” and that it is always too early to entrust a sum of money into the hands of children, yet money spreads among the new generations at a dizzying speed. From advertisements promoting toys and consumer items, to characters such as influencers sponsoring any type of product, it is essential to actively guide children and teenagers to build a healthy relationship with money.
Explaining from the start that money is neither good nor bad, but only a means to achieve certain objectives is a necessary phase for children to grow up with awareness and for them to learn to manage money with serenity.
How to take the first steps in financial education for children
At the beginning, financial education for children passes through play and fun, as the mascots of the Museum of Saving also teach us in the third episode of the CasaMica podcast.
Thanks to role-playing games or do-it-yourself shops, children can learn the importance of evaluating the cost of things. The theme of money can be introduced, for example, through fairy tales such as that of the ant and the grasshopper or, even better, using the stories of Arco and Iris’s travels. The series of fairy tales that you can download here that the Museum of Saving has curated to introduce children to the value of money in a simple and fun way.
Then starting to build a paper piggy bank, cutting out and printing the money to understand how it is made and starting to handle it, playing with giving a value to your desires, are just some stimulating and fun activities to take the first steps towards financial education for children.
To know where to start, numerous materials are available on the Museum of Saving website, including informative guides full of activities such as Pocket Money & Tips.
When children start primary school and begin to have the perception of quantities and are able to do their first calculations, it is possible to start introducing pocket money.
Pocket money yes or no?
Pocket money is a useful means both for children who can experience the freedom to make decisions, and for parents, who instead of satisfying every request, entrust a weekly or monthly sum to be managed independently.
Giving pocket money is an act of trust towards your children and helps to make them more responsible. There is no need to fear that at the beginning the money could all be spent immediately; it is a normal attitude. According to data from experts in economics and psychology, reported in the Pocket Money & Tips guide, staying broke teaches kids to think carefully about the future before buying, for example, a pair of expensive shoes on an impulse.
In addition to distinguishing primary goods from superfluous ones, pocket money introduces a new necessity: planning. It is important to think of a useful strategy for accumulating the necessary budget for your desires, as well as showing how advantageous it is to save and have your own money.
In short, pocket money creates a continuous dialogue on the value of money: sharing experiences on how it is used also helps to limit family conflicts and inspires curiosity to delve deeper into financial issues.
Pocket money instructions for parents
But where to start this dialogue? Here are some indications:
- The amount obviously depends on the availability of the family and the age of the children. A 10 year old child has fewer needs than a 17 year old boy, also spending less time outside the home;
- Pocket money is earned: perhaps it is possible to associate it with various activities such as, for example, recycling waste or carrying out some tasks at home;
- The amount should not be anticipated because it is necessary for the children to learn to manage it, understanding how to avoid running out of funds;
- Do not increase or decrease your allowance based on extra work not done or school performance. Pocket money is not a means of praising or punishing, but of educating about the value of money and saving;
- Do not integrate your pocket money with other “gifts”, otherwise accumulating could be too simple and immediate.
Beyond pocket money, how do we talk about money
Pocket money is not the only means because to talk about money with children and teenagers you also need to start from small daily actions: looking at a bill together, for example, can be useful to explain how important it is to turn off the lights and save money. Going to the second-hand market also helps to tell children how objects and toys that are no longer used can, in a long-term perspective, be recycled and have more lives.
In the ongoing discussion on the value of money, the way in which some concepts are conveyed is also very important. Associating saving only with expressions linked to effort and sacrifice is wrong because saving is an act of freedom that allows us to realize our projects.
Furthermore, explaining to children that money can be used to do good in society, suggesting that they help those who have less contributes to developing a sense of belonging to their community and nurturing empathy, as well as helping children to become aware and active citizens.