In order for children to be able to handle money competently and responsibly as adults, they have   to be able to assess value and costs realistically. This is a particular challenge when it comes to costs, as children don’t yet encounter them directly. They have never dealt with taxes or insurance premiums, for instance.

For children, it is also important to consider   what price is appropriate   for a desired item, or rather, how much they are willing to spend on it. This includes understanding the link between work and income: what salary do I get for which kind of work? How many hours do I have to work for a given amount of money?

The most effective and long-lasting way for children and adolescents to learn how to handle money is being able to practise   in everyday life   and gradually take on more responsibility.

Tips for parents

Parents can create learning opportunities for children to experience the value of money in everyday family life at various ages:

• Allow children to save small amounts of money in their own   piggy bank   even at preschool age. Once the piggy bank is sufficiently full, the child can buy something special with   the savings – under your supervision.
  
• After starting school, children are usually ready to manage regular   pocket money   themselves. First, talk to your children and clarify what the pocket money is intended for. But after that, let them have as much free rein as possible. Children learn best from their own experience – which also includes bad purchases.
• Discuss the relationship between work and income,   at the latest when talk of career choices comes up. Explain how much you yourself earned at various ages and show your children the family budget, including income.
• Give your kids opportunities to be “entrepreneurial”,   e.g. by running a stall at a flea market or a joint seller’s account on an online marketplace, taking on little “jobs” at home or (for youngsters over 13) doing a part-time or holiday job.