How to talk to children about money


Parents tend to postpone the financial education of their children, arguing that they should enjoy a carefree childhood as long as possible. But children do need to take financial decisions at an early age, and so talking to them about these issues is necessary, according to K&H Bank.

In a financial awareness competition organized by K&H Bank for children, the results show that barely more than one third of the participants responded to all or almost all the questions correctly, a press release sent to the Budapest Business Journal says.

The majority of the participant children were familiar with basic financial terms, but in some cases even basic elements of financial knowledge were lacking, K&H says. This indicates that parents do not discuss financial matters with their children.

K&H Bank summarized some of the issues in which children should become involved:

- Parentsʼ salaries: Sharing real-life data about expenses and incomes, and planning payments, can help children use their revenues wisely later, and present realistic salary expectations at job interviews;

- Let children experiment: Many parents see pocket money being "wasted" if their child spends it carelessly. But if we control the way they spend it, children will not learn to take decisions independently and spend responsibly;

- What exactly is an investment? Many see investment as simply a purchase of a useful product, like buying a book which will contribute to the development of a career. More applied examples are needed to clarify terms;

- Money, time, resources: Adults and children are similarly attracted to buy desired goods immediately. Children must be taught that getting hold of a product may bring quick satisfaction, but that sometimes it is worth saving money for something more valuable in the long term;

- Johnny has a cooler phone: Parents tend to avoid this issue, but this will not settle it. Talk about sensitive issues openly and thoroughly and make sure the child has understood the answers.

Lender Liquidity Narrows in May Banking

Lender Liquidity Narrows in May

Karácsony Still Winner of Budapest Mayoral Election After Re... Elections

Karácsony Still Winner of Budapest Mayoral Election After Re...

Continental Veszprém Plant Manager Looks to Transform Challe... Interview

Continental Veszprém Plant Manager Looks to Transform Challe...

Summer Camp Prices Have Increased 10-15% Tourism

Summer Camp Prices Have Increased 10-15%


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.