Talking about money with children should never feel awkward. Treat them like any other friend and keep it simple. Help them build their confidence by removing the taboo around personal finance.
Children could be ready for small amounts of their own money from as early as age 6. Keep in mind that children develop at their own different pace and some might be ready later. Allow them to make their own mistakes, at this stage view them more as lessons.
Surveys have shown that our parents, and theirs, have been raised with a sense of taboo around money, as something you keep to yourself. Should it be like that? An openness around money at a young age teaches the child that money isn’t something to be worried about. We have prepared some questions to start the conversation here>
In the beginning 50 kr per week is enough. Start small and increase as you see fit. Once you have started talking about what the money should be used for, give them enough to figure out how it works.
Let your children have their own money, start small in the beginning and let it run out. Bring your children to the grocery store, give them their allowance and let them figure out how much everything costs. Talking casually about money and letting them see that it can run out can create a healthy relation to money in the long run.
P.F.C. junior is a good way of introducing money to kids. Your child get their own card and account, connected to yours for an easy overview and control. Read more about Junior here ->
Rewarding your children for helping out at home is a good way of teaching them that there is no free money. Create chores that your children can manage with little to no effort like:
- Wiping the dinner table after meals
- Putting away dirty laundry
- Getting their homework done in time
Older kids could get rewarded for heavier stuff like gardening work, car washing or window cleaning.
If you save in your children's own name, remember that they’ll get access to the money as soon as they turn 18. A potential downside is that they might not be ready to manage that kind of money yet. You could just as well save in your own name and turn over the savings as you please, either bit by bit, or for a good cause.