For parents

For children, being able to use their own money is a big and exciting step towards becoming a grown-up. Getting their first bank card feels special and using electronic money takes practice to start with. Here you will find some useful tips that will help children handle money in the right way.

• Always set a little aside for a rainy day

  Never spend every last cent you have – you never know when you’ll need money for something. This is the number one rule when it comes to money. It is the one that people everywhere follow: families, businesses, even governments. In terms of saving money, in fact, Estonia is an example to a lot of other countries.

• Always keep track of how much money you have

  That way you’ll always know how much you can spend. If you don’t have much left, don’t waste it on sweets – save it up. You can always check an ATM or the Mobile Bank to see how much money you have. If you don’t know how, ask your parents to show you.

• Wherever possible, pay by card

  Paying by card is always safer than paying in cash. If you carry a card instead of cash, you’ll still have your money even if your wallet’s stolen. Nobody can take your money from your bank card. Your parents undoubtedly pay by card wherever they can – most people dislike carrying a lot of loose cash around in their pockets, after all. And in Estonia you can pay by card pretty much everywhere.

• Never tell others about your money matters

  Money’s a very personal thing. It’s not something you should boast about; nor should you ask other people about it. Another reason not to brag about having money is because other people might then want to try and get your money for themselves.

• Memorise your PIN and keep it to yourself

  Think of your PIN as your little secret. Never write it down anywhere and never tell anyone else what it is – otherwise other people could get their hands on your money. You can share your PIN only with your mum and dad.

• Save your money for things you need

  If you want to buy a new phone, bicycle or something else exciting, don’t waste your money on sweets – save it in your account. Adults save money for the same reason: if they want to buy a new TV, for example, or a new car.

• If you lose your bank card or if it is stolen, tell your parents right away

  They can make sure your card is closed so that no one gets their hands on your money. They can also ask the bank to issue you with a replacement card. That said, you should always take very good care of your card and try not to lose it in the first place.

• The best place for coins is in a piggy bank

  Coins may be small, but they’re big in value. So once your piggy bank’s full, bring it in to the bank. You can come in with your parents or by yourself. The bank assistant will help you put them in your account, and this way you can keep saving. And once you’ve saved enough, you can buy yourself something great. Saving money is important, because it means you’ll always have a little something set aside for a rainy day.

• If the ATM eats your card, tell your parents right away

  That way your parents can go to the bank and get you a replacement card so you can keep using your money.

• Always ask your parents for advice if someone asks to borrow money

  If someone wants to borrow money from you, always ask your parents for advice. It doesn’t matter how much they want to borrow. Lending people money is a big deal and you should always discuss it with your parents. They’ll tell you whether they think it’s a good idea or not.

As handling electronic money takes some getting used to, you should also teach your child how to navigate in the digital environment from an early age. Here you will find some useful tips that will help children get prepared.

• Always set a screen lock for your phone or smart device

  If you leave your house, what do you do? You lock your door. This is why your computer is protected by a password and your bank card by a PIN – so that no one can access your personal things. Your phone is like a house where your keep your personal things: the phone numbers and pictures of your friends, personal text messages and e-mails and, as you get older, your finances. Therefore, you need to keep your phone locked when you’re not using it.

• Create a safe password containing numbers and upper- and lowercase letters

  A safe password has at least eight symbols and alternates between upper- and lowercase letters and numbers. Here’s a tip for creating a password: choose your favourite song and write down the first two lines.

  Example: Twinkle, twinkle, little star, how I wonder what you are

  1. Write down the first letter of every word: ttlshiwwya.
  2. Now alternate the upper- and lowercase letters: TtLsHiWwYa.
  3. Replace some of the letters with numbers: E = 3, S = 5, I = 1, B = 8, G = 6.
  4. TtL5H1WwYa – this is a safe password that you will always remember because of the song.

• Use different passwords on different sites (e.g. e-mail and social networks)

  It’s not a good idea to think up one password and use it everywhere. If somebody guesses your password, they will have access to everything protected by that password.

• Don’t open e-mails, links or pictures sent by strangers

  Never download unknown files or answer unknown calls or e-mails until you have talked to your parents or adults you trust. Even a short online survey or an e-mail could be a scam to get your personal details.

• Download apps safely and from official app stores

  Download apps from official app stores like App Store or Google Play. If you download apps from unknown stores, you are at greater risk of planting malware or viruses on your smart phone. Before downloading and installing, check how many times the app has been downloaded, what the ratings are and what other users have written about it.

• Maintain your privacy and never give out your personal details online

  There are two types of information: personal and optional. How do they differ? Public information allows others to get to know you. If you say what your favourite food or animal is, you are showing your preferences. Personal information is characteristic of you alone – for example, your name, personal identification code and passwords.

  Privacy is your ability to control the information obtained by others. This may include your personal details, confidential messages or online activity. Personal details that are revealed carelessly (or acquired by fraud) may lead to identity theft, which means that someone buys goods and services or even commits criminal offences or misdemeanours in your name.

• Recognise cyber bullying and report it to your parents or teachers

  Cyber bullies use modern ways to get at other people via smart phones or computers. There are various kinds of cyber bullying. Offending somebody is forbidden – both online and in real life. Don’t say things via a text message or e-mail or in social networks that you wouldn’t say face to face.

• Browse safely online and don’t open websites or links that seem suspicious

  There are all sorts of dangers on the Internet: bogus websites stealing user names and passwords; adult content in search results; spam; suspicious links; and proposals made in chatrooms or social networks. Ask your parents how to recognise inappropriate and dangerous content.

• Be careful about what your post on the Internet – it will stay there, and it’s hard to delete

  Everything you write (e.g. social media, comments and forums) or upload (pictures and videos) on the Internet will still be there even after you delete it. Information that is uploaded to the Internet is available to everyone. Even if a website has shut down, the information that was stored there can later be found by using a search engine. The information you’ve posted on the Internet may be searched for by your friends but also by your future employers or a school you’re trying to get into. Would you like it if a recklessly written story or uploaded picture embarrassed you later on in life?

• Act responsibly

  Using the Internet may lead to various consequences, some of which may be extremely serious. That’s why you must follow the rules that you have agreed on with your parents. Inappropriate behaviour on the Internet could cause you financial damage, harm your reputation and lead to actual punishments.

• Experiment with the amount of the allowance.

  It's worth exploring different options before settling on a fixed amount. Start out by giving your child smaller sums to spend as they please. You can teach your child how to save money by gradually increasing their allowance.

• Give them their allowance regularly, if possible.

  This will teach your child how to set goals and save money while increasing their independence.

• When should you start giving your child an allowance?

  This depends on your values and how mature your child is. An allowance should not be given for doing chores for which the child is responsible anyway. However, it could be used as a reward for completing complicated tasks.

• Let your child participate in the family's budgeting.

  Show them how much money you spend on utilities, transport, food, leisure and loan payments. Teach your child how to make a shopping list and reasonable purchases

• Make an agreement with your child.

  Make an agreement with your child specifying which expenses are their responsibility and which will be covered from the family budget (e.g. clothes, entertainment and phone bills).

• Show your child how to set short- and long-term financial goals and put together a plan to achieve these objectives.

  Together with your child, discuss the influence a loan has on the total cost of the purchase and compare it to saving. For instance, you could discuss how much computers, holidays and university education cost, how to save money for them and how long it will take.

• Teach your child to distinguish what they want from what they need.

  Explain to them that every now and then you have to give up certain things for the sake of fulfilling larger dreams and wishes.

• Acknowledge your child's.

  Acknowledge your child's success in reasonable budgeting and achieving their goals.

• Set an example.

  Parents and other relatives play an important role in shaping children's attitudes. Children get their general understanding of money by studying the way their family members use their everyday budget.

• Child's own bank card.

  Child's own bank card.