TEACH YOUR CHILDREN FINANCIAL RESPONSIBILITY
Friday 04 September 2020
Being able to handle money is essential. This has not only to do with knowledge, but also with rules and limits. We have put together some helpful tips for parents to help children managing their finances
A money diary helps your children to keep track of how much money they spend and whether there is any pocket money left at the end of the month. Explain the difference between saving money and spending money, and raise your children’s awareness for decision-making. Apps such as the UniCredit Bank Austria ‘MeinGeld App’ (available in German only) offer a clear picture of income and spending.
Explain the difference between “wanting” and “needing.” Don’t just take the decision off your children’s shoulders, support them with questions like: “Do you really need this? What happens if you do not buy it? What could you do differently to make your wish come true?” In this way you strengthen your children to develop solutions and alternative actions themselves.
Set individual savings goals. If your child has a bigger wish, calculate together how much pocket money is needed to fulfil the wish. A regular deposit into a savings account is a good plan. Motivate your child to do so.
If your child is around 15 years old, discuss topics such as the first salary or the first flat:
- Explain the difference between gross and net salary, special payments and compulsory statutory contributions.
- Explain to your children what costs must be calculated for living (rent, electricity, gas, insurance, TV and Internet costs, deposit, possible commission/reimbursement for investments).
- UniCredit Bank Austria’s web app “GeldWissen2go” (available in German only), for example, contains entertaining videos, quizzes and checklists on these topics.
Learn how to shop safely online as there are fake sites all over the net. Here are some tips before buying:
- Research or google whether the company really exists.
- Check the web address matches the product range.
- Look for missing encryption: pay attention to the lock in the address line.
- In fake shops, usually only advance payment is possible.
- Look for unrivalled low prices: before buying, compare the market value of the product.