Teach your child how to manage money
5 min
Learning to save and count money, going out with friends on their own for the first time, buying their own trainers, etc. Children grow up and quickly become independent, including in financial matters. As a parent, you want your child to know the value of money from a certain age and learn how to manage a budget. For example, you may decide to start giving your child pocket money or a regular extra amount, such as for birthdays or good school reports. If your child has outgrown the piggy bank, a kids’ bank account is a great next step. But from what age can you open such an account? When is the best time for your child to start saving? And is there any good advice on giving pocket money?
The first bank account
Many banks offer a free kids’ bank account, which can be opened from birth. This is an ideal way to teach your child how to use a bank account and manage a budget. Such packages usually include a current account, a debit card and a savings account, as well as access to online and mobile banking transactions (available from a certain age). Under your supervision, your child can then make payments, transfers and cash withdrawals, and receive account statements. They will take their first steps in finance and learn about all the banking transactions that will be part of their daily life as an adult.
A youth account also gives parents peace of mind. Thanks to various useful features, such as an account overview in your own online or mobile banking app and customisable payment limits, you can stay in control of your child's spending. This gives your child the freedom to learn how to manage a budget while you can enjoy peace of mind.
Giving pocket money: a good idea?
Pocket money is a topic that concerns many parents. After all, in addition to being a nice extra, it is above all a first step in a child’s financial education. So, is giving pocket money a good idea? How much should parents give and from what age? Are children allowed to choose what they want to do with it? Read our article on the big pocket money survey to find the answers to these questions and lots more pocket money advice.
What you learn early, you carry for life
Natalie, mother of Emilia (10) and Giuliano (7), believes in the importance of financial education for children from an early age. "When they were still toddlers, they often asked for money during holidays to buy all sorts of things. Emilia especially. I actually thought it was a lot of money spent on useless things. So their first year of primary school seemed like a good time to start giving them pocket money to manage themselves. After all, they learn to count at school, and they soon start doing exercises where they do sums using notes and coins. I believe that what you learn early, you carry for life." Discover Nathalie’s full story here..
Teenagers and budget management
Stijn, father of two teenage sons: "By giving them pocket money, you teach teenagers the value of money. When they have to decide what to drink using your own pocket money, they’ll actually compare the price of a cola and a glass of water. That’s how they’ll learn to make choices. We also give them pocket money to teach them how to save. It’s important that they learn to set goals and create a basic financial plan to achieve them. It’s part of their financial education as teenagers." Read the full story of Stijn and his family here..
Saving for your child
Despite low interest rates, savings accounts remain a staple for many parents. Opening a savings account for your child is a simple and safe way to set aside money from birth until they reach adulthood.
There are two options: either you open an account in your child’s name. The money in that account will then also belong to your child. You cannot simply withdraw money from it (except for an expense that is in your child’s best interests) or transfer it to your own account. From the age of eighteen, your child will have full access to the savings, regardless of whether they are ready for it.
Would you prefer to stay in control? In that case, you can open a separate savings account in your own name, into which you can put money for your child. You can then decide on the access rights yourself.
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