How can you teach a child to manage their money?
5 min
Teaching a child to manage money can start as early as age 3 with simple tools such as a piggy bank, and you can even open a bank account in their name from birth. This early financial education is a valuable investment in your child’s future, as it establishes the basis for responsible financial management in adulthood.
This guide is aimed at parents of children aged 3 to 18 who want to gradually introduce their children to the value of money and budgeting. Whether your child is in nursery or is a teenager, you will find age-appropriate advice and practical solutions to support them.
Key points
- You can open a bank account for your child from birth.
- For pocket money, it is recommended that you give between €0.50 and €1 per year of their age per week.
- You can save for a child using a savings account in your name or in the child’s name.
Why is it important to start financial education at an early age?
According to a survey by the Belgian financial sector federation (Febelfin), 54% of young people aged 16 to 24 see managing their money as a burden. Even more concerning is that only 35% feel they have a good understanding of their actual financial situation. These statistics show that many young adults enter working life without the basic skills needed to manage a budget.
Conversely, research shows that children who handle money from a young age develop better saving habits, avoid impulsive purchases, and become financially independent earlier. As a parent, you play a key role in this learning process.
Principles by age
Each age group requires a tailored approach:
- Ages 3 to 6: This is the discovery stage. Your child learns to recognise coins and banknotes through play. A transparent piggy bank can help them to visualise the concept of saving.
- Ages 6 to 12: Your child is ready for their first financial responsibilities. They can learn to manage pocket money, understand saving, and decide how to spend their money.
- From the age of 12, teenagers can use banking tools such as debit cards and payment accounts under parental supervision. They can learn to manage a monthly budget and set structured savings goals.
Practical tools by age group
At each stage of their development, specific tools can help children learn how to manage money. Here is an overview of the most effective methods.
For ages 3–6: financial awareness
At this age, children learn through play and hands-on experience. Playing shop with real coins and banknotes is an excellent place to start. Set up a small till at home and let your child 'sell' items or toys.
Shopping together also provides many learning opportunities. Show them the prices in the shop, ask them to help you count and let them guess which product costs more. These simple exercises help to embed the concept of value in everyday life.
A transparent piggy bank is particularly effective for this. Unlike traditional piggy banks, it allows your child to see their money grow, making saving more tangible and motivating. This is a good first step before introducing a savings account later on.
Wondering at what age to start giving pocket money? Discover the results of our pocket money survey.
For ages 6–12: first responsibilities
This is the right time to introduce regular pocket money. A simple and widely used rule is to give between €0.50 and €1 per week per year of age. For example, a 10-year-old would receive between €5 and €10 per week, or €20 to €40 per month. This amount can of course be adjusted depending on your family situation and gifts received at birthdays or celebrations.
The envelope or jar system helps children to separate their money into categories such as 'saving', 'spending' and 'gifts'. This practical method helps children to understand that they cannot spend everything at once.
You can also give them small errands to complete independently. For example, you could ask them to buy bread or a specific item with an exact amount. This will help them to learn how to calculate change and check that they have been given the correct amount.
Set clear savings goals together, such as saving up for a toy, a piece of clothing or something else they really want. Track their progress using a chart or stickers. This makes saving more meaningful.
"From their first year at school, children learn to count — it's the perfect time to give them small amounts of money to manage. Handling coins, giving change, or saving for a toy are all simple actions that prepare them for managing a budget later on.”
Nathalie, mother of Emilia (10) and Giuliano (7).
Wondering how much pocket money to give from age six? Discover Nathalie’s story here.
For children aged 12 and over: guided independence
By this age, your teenager will be ready to open a bank account with a debit card. Many banks offer free current accounts for young people, including a suitable debit card and access to online banking.
Using banking apps under your supervision allows your teenager to track their spending in real time. Notifications and transaction history can be valuable tools for discussing financial choices together.
Give them responsibility for managing a monthly budget for leisure activities and outings with friends. This will encourage them to prioritise. If they spend all their money at the beginning of the month, take time to discuss this with them and help them to adjust for next time. This dialogue will support their learning and strengthen their ability to manage money independently.
"Pocket money forces them to prioritise. For example, they learn to weigh up the choice between a soft drink and a glass of water. It is also important to encourage them to save by setting goals and plans to achieve them.”
Christian, father of two teenagers
How can I save for my child?
Even in an environment of low interest rates, a child savings account remains a reliable option for many parents. It enables you to build up savings gradually while providing your child with a financial cushion when they reach adulthood.
You have two options:
- If you open an account in your child’s name, the funds legally belong to them. You cannot freely withdraw this money (except for expenses in their interest), nor transfer it to your own account. When they turn 18, your child gains full control of these savings, whether they are ready or not.
- Would you prefer to keep full control? Open a savings account in your own name. In this case, you can decide on the access conditions, such as withdrawals and transfers, and when to pass the money on.
How BNP Paribas Fortis supports parents with financial education
To support parents, BNP Paribas Fortis offers the Welcome Pack, a simple, secure and flexible solution designed to support children and teenagers up to age 18.
Why choose this pack for your child?
- A payment account adapted to your child’s age
- A secure debit card with limits adjustable by parents
- The option to add a savings account to encourage saving
- Free of charge up to the age of 18. From the age of 12, children can access the mobile banking app under parental supervision.
- At 18, the Welcome Pack evolves into a young adult offer.