Children and financial wisdom

Financial literacy or financial wisdom enables smart financial decisions.

In order for children to become financially wise, their parents need to be the same. Having financial wisdom makes it easier to pass this knowledge on to your children.

Financial wisdom can be:

  • Knowing how to compile a family budget
  • Having basic knowledge of investing
  • Responsible behaviour with money

How to teach financial wisdom to children?

  • Set an example

  • Involve them in compiling the family budget

  • Consider the need for an allowance

  • If possible, the allowance should be regular and always in the same amount

  • Experiment with the amount of the allowance

  • Teach them responsibility

  • Talk about setting goals

  • Teach them to differentiate between needs and desires

  • Get them a bank card

  • Support them in earning extra money

  • Praise them

  • More on teaching children about financial wisdom