Handling money well
The topic of money and how to deal with it is rarely discussed openly in our society, which means that important learning opportunities for children are missed. It is therefore all the more important that parents consciously address this topic with their children and guide them on the path to a sustainable, self-determined life. After all, even in the age of the internet and social media, nine out of ten young adults still seek advice from their parents when it comes to financial matters. Parents are therefore irreplaceable anchors when it comes to dealing with money - from the first pocket money to important investment decisions as adults.
What is good money management?
Behavioural patterns are established at a young age. That's why it's important to start talking about the sustainable use of money with children. In general, it is never too early to address the topic of money in an age-appropriate way. This is not about theoretical knowledge of interest rates and figures, but rather about reflecting on their own wishes, attitudes and priorities. To initiate this process, it makes sense to start by thinking about your own money behaviour: Where and how did I learn how to handle money? What do I spend my money on? What is important to me? Do I save regularly? Do I have reserves? These are all questions that you can and should ask yourself in order to develop reflective money behaviour and be a good role model. After all, children learn mainly through observation and imitation.
In addition to reflecting on your own money behaviour, there are concrete skills that can be used to determine good money management. These include, for example, making ends meet with the money available, drawing up a budget and sticking to it. It is also important to set and achieve savings goals. A cornerstone of responsible money behaviour is also to have a reserve available for emergencies in order to be prepared for the unexpected. And special attention should also be paid to reflective consumer behaviour and an awareness of external influences.
Talking about money with children
The foundations for these skills can already be laid in children - through practice in real-life, everyday situations. After all, the sustainable handling of money is comparable to riding a bike: You don't learn to ride a bike by reading a guidebook either, but only by actually practising, falling down and getting up again. It is therefore a matter of developing responsible, self-determined money behaviour through practical experimentation in everyday life. This is easier with guidance and support from parents - after all, it is also easier to learn to ride a bike if you are supported at the beginning. As parents, you can support the development of sustainable money management by reflecting on purchasing decisions, setting savings goals together or having open discussions about the family's living costs, for example.
You don't have to be a financial expert to teach children how to handle money responsibly. It's more about thinking about personal experiences, attitudes and behaviour and passing these on. Because talking openly about money is already a big step.
People do talk about money!
The following questions, for example, can be used to start a family conversation about money:
+ Does money make you happy?
+ What is it worth saving for?
+ How much money is a lot?
+ What «money mistakes» do I keep making?
About the author:
Lena Gugenberger is an educator and financial literacy expert at Three Coins.
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
More on the topic of money
- Money in the digital world
Compared to their parents, children today come into contact with the digital world at a very early age. This brings challenges - also in relation to money. - Conscious purchasing decisions thanks to reflection
How we handle money depends on our own personality and experience. Money behaviour is also influenced by brain mechanisms.