Parents
Parents have a key role in the financial education of their children.
Studies show that children from families where money issues are discussed openly and where children's questions are addressed develop a more open-minded attitude toward financial issues and have better developed financial skills. Therefore, parents need to act as a role model for their children in financial matters and teach them how to handle money responsibly from an early age.
The central starting point here is pocket money, which is ideal for learning to plan expenses in a forward-looking manner.
Simple financial facts can be taught from a very early age. Parents should make an effort to talk to their children about what it means to get into debt, save or consume sustainably. Children are usually very interested in their family’s economic decisions, for example when their parents are buying furniture or household appliances or planning a vacation. Children can learn a lot at a young age when they see how offers and prices are being compared and if they see decisions being considered carefully.
But this requires open communication. Children should be encouraged to ask questions about money. There is a saying in German that it is not polite to talk about money – this saying should not be communicated to children. Also, it is important to praise children if they show positive behavior in dealing with money.
