Pocket money for teenagers: parent Stijn shares his experiences
5 min
Anyone who thinks that small children cost a lot of money probably does not yet have teenagers in the house. Teenagers eat the cupboards bare, come home with bigger school bills and want to do all sorts of things (without you). Their wish lists also become more expensive: from a new iPhone to a cool skin on Fortnite. Our big pocket money survey shows that many parents are stepping up their game when it comes to the financial education of their young teens. They realise that they must teach their teenagers financial responsibility before they end up with a burning hole in their pocket. Together with Maison Slash, we talked to Stijn, a father of two teenage sons. What are Stijn’s views on pocket money and saving? Will his sons be allowed to do student jobs in a few years’ time? And is it possible to teach teenagers about investing?
Learning how to manage money
Stijn: "Elke and I have two sons. The oldest (13 years old) T. started getting pocket money when he started secondary school. That seemed like a good time to take the next step in teaching him how to handle money. The youngest (10 years old) J. doesn't get pocket money yet, but he's more of a saver anyway. He doesn't really feel the need to spend anything at the moment."
"From a young age I've tried to teach the children the value of money, by playing games involving small family expenses. For example, when we're at the table, I let them guess how much things from the supermarket cost. Then I show them the bill and let them work out how much a litre of milk or a pack of butter costs. It’s a fun game! Everyone takes turns guessing. After a while, they’ve become really good at it."
“I am very interested in the economy and the financial world, and I also like to talk about it with my family.”
Why give your teenager pocket money?
Stijn: "By giving them pocket money, you teach teenagers the value of money. When they have to decide what to drink with their own pocket money, they will compare the price of a cola and a glass of water. They have to learn to make choices like that. We also give them pocket money to teach them how to save. It is important that they learn to set goals and financial plans to achieve them. T. saved up for a while for a gaming computer. He went to the shop and got a quote for all the parts he wanted. He had to put his pocket money aside for a while to save up. Along with some money he received for birthdays and other occasions, he was able to save a considerable amount."
What is allowed and what is not?
“Teenagers need to experience for themselves that you can only spend money once.”
Stijn: "Currently, T. gets 20 euros paid into his account each month. He also has a banking app on his phone to help him manage his budget. T. mainly uses his pocket money to pay for a drink or a bag of crisps when he meets up with friends, or recently to buy dice for a special card game. We don't really impose rules on what is allowed and what is not. I think with pocket money, you have to learn from experience that you can only spend it once. Children have to learn from their mistakes. If you impose too many rules as a parent, I don't think they’ll learn."
Want to earn a little extra?
Stijn: "In the coming years, we will certainly increase their pocket money a bit more. But giving them a big budget to also cover clothes, meals, etc. seems like something for when they start university. As long as they still live at home, I don't think that’s really necessary. T. is still too young for a proper student job, but we do let him earn a little extra pocket money in other ways. For example, this summer he was given some chores in the garden because he needed money for a game he wanted to buy. In the past, he has also sold some of his Pokémon cards. He negotiated this himself in the shop. I think selling old toys is a great idea."
Financial education for teenagers: is it more than just giving pocket money?
Stijn: "I see financial education as being about more than just giving pocket money. You can also pass on an interest in our economy and financial markets to teenagers. I recently took T. to Finance Avenue. It was a money fair for savers and investors in Brussels. He found it very interesting. We also participate together in the Stock Market Rally, where you can invest a notional sum of money in shares over a three-month period. In my opinion, teenagers can already learn how to analyse a company and discover the factors that influence our economy. I would rather do this with him than play Fortnite (laughs). I hope that, in this way, I can teach our children how to make money by saving and learning to invest."
Do you have any questions after reading this article? Would you like to know more about our free current account for young people under 18? We can help you remotely or by appointment at a BNP Paribas Fortis branch or post office, or 24/7 via our digital channels.