Conscious purchasing decisions thanks to reflection
A common obstacle to the responsible use of money is the immediate fulfilment of needs. This impulse is particularly easy to observe in children: They see something - be it in a toy shop or a shop - and want it immediately. To prevent the resulting impulsive purchasing decisions, it is helpful to think together: Why do I want this product right now? How important is it to me? What am I giving up for it? Is it worth it to me? This thought process helps children to learn to consciously perceive their needs, categorise them, compare them with their financial possibilities and, if necessary, postpone them - a fundamental skill for dealing well with money later on.
A bewildering array of choices influences our decisions.
Our decisions are also influenced by a bewildering array of choices. For children, it's the enormous selection of sweets at the checkout, for adults it's the screaming sale posters in the pedestrian zone: when the brain is flooded with an oversupply, it no longer makes rational decisions.
Fixed rules are a good strategy for keeping a cool head in such situations. For example: After the child has helped with the shopping, they are allowed to spend a certain amount of money themselves. This limits choices and encourages prioritisation.
Another factor in this context that is particularly relevant for children is social norms. The behaviour and opinions of others influence all our decisions. Peer pressure is particularly high among children and young people. In order to better withstand this, it is important to strengthen children's self-esteem so that they do not only define themselves in terms of material things. It also helps to talk about the following questions: What is important to me personally? What is valuable to me? Are there also valuable things that cost nothing?
Why is it so important to know how our brain works?
Studies show that the basic behavioural patterns for good money management develop and consolidate at a young age. These patterns are influenced by the automatisms of our brain. It is difficult to get rid of bad habits later on. It therefore makes sense to address and reflect on the hurdles described above at a young age in an age-appropriate manner - and thus lay the foundations for responsible money behaviour as early as possible.
Toolbox for dealing with psychological hurdles
- Situational conversations about priorities and values, e.g. on the questions: What is important to me? What is valuable to me? What makes me happy?
- Clear rules for orientation: e.g. limiting choices, cost limits for certain expenses, regular, age-appropriate pocket money without the possibility of early payment.
- Helpful behaviour patterns: Children learn by watching their parents. In order for children to understand how purchasing decisions are made, how money is allocated and which non-buyable goods (time together, friendships, health) are valuable for their own happiness, it is worth explaining your own behaviour to the child in each case.
The Association of Swiss Cantonal Banks
The cantonal banks are committed to promoting general financial education. The focus is on FinanceMission, a joint initiative of cantonal banks and teachers' associations to promote financial literacy in Swiss schools. In this way, the banking group is helping to combat youth debt and actively assuming social responsibility.
www.kantonalbank.ch/finanzen-im-griff
About the author:
Lena Gugenberger is an educator and financial literacy expert at Three Coins.
More on the subject of money:
- Der gute Umgang mit Geld
Geld ist essenzieller Teil unseres Lebens. Trotzdem gilt nach wie vor: Über Geld spricht man nicht. Das sollten wir ändern. - Geld in der digitalen Welt
Advertorial: Im Vergleich zu ihren Eltern kommen Kinder heute sehr früh mit der digitalen Welt in Berührung. Das bringt Herausforderungen – auch in Bezug auf Geld.