Financial training for the superparents.

Here we give you tips and tricks on how to give your child a better understanding for money as a parent.

You can’t just go to an ATM if you are out of money

Introduce and be someone you can rely on if children want advice or talk to
Most children get their first weekly pocket money at the age between 7-10 years. The weekly pocket money is normally around 20 kr at that age. When the child gets older and more mature, you can raise the weekly pocket money and after a while go over to monthly pocket money. Don’t just hand out the money. It’s important that you as a parent discuss with your children. Are they happy about their choices and how well have they spent their money?

The dinner table is not wrong
Talking about money during dinner time is not wrong. Money should be funny and not related to anxiety when the child wants to buy something new and there is no money left. Many tough discussions between children and parents are related to money. Thats’s why you should talk about money continuously and not only when the wallet is totally empty.

Negotiate with your children
Negotiations are important so that parents and children agree on what the money should cover from time to time. Weekly pocket money that covers a child's purchases and at the same time gives an opportunity to save some money is recommended.

When there is no more money: Say no
When you have agreed about the weekly and monthly pocket money, the children can take responsibility for what they can buy and what they will do with their savings. At time specific occasions the children can expect their weekly or monthly pocket money. The children will therefore be able to predispose their own money and take responsibility for what they purchase. If the money runs out, the children will have to wait for their next weekly or monthly pocket money.

Let your children buy the ”wrong” stuff
The youngest children buy candy with most of their weekly pocket money. For boys tv and computer games are most common and for girls, make-up and clothes are most common. It’s important that, if you as a parent don’t like your child's purchases, you still have to allow them to buy what they want. The children have to learn to make both right and wrong choices. Making own choices is the whole idea. If you take away that part, you will prevent children from learning, make up their own minds and find their own solutions.

Two out of three children in Sweden get weekly- or monthly pocket money from their parents.
Apps and digital appliances give the children a good base for learning.

Learning without detriment
There is no research to suggest that it would be damaging for children, big or small, to use a tablet or a mobile. That tablets and mobiles emit harmful waves or negatively impact on a child’s ability to learn are just myths. There is, however, a risk when we neglect to teach our children about digital services and platforms via mobiles and tablets. This leads to children not gaining the skills which the rest of society has taken on board.

Make room for a new form of learning
As parents we are often influenced by our emotions and we as people overall have difficulty relating to new things in society. Getting children to use digital tools to make everyday life easier is seen by many as shameful. In the same way that we are sceptical to mobiles and tablets, books and TVs were opposed when they were new to society. But don’t let your own idea of childhood influence you.

Money on your phone
Mobile phones are the most common way for adults to keep check on their money. This is how it should also be for children. Today, most children have their own phone and a good understanding of its use and functions. Therefore, it can only be a good thing that they are also able to manage money on their mobiles. Use apps that are accessible for children to explain the value of money and the act of saving and wasting it.

Digital purchases are also purchases
It’s harder for children to understand that mobile and online purchases cost money too. Because they don’t have anything to physically hold in their hands, it is important that you as a parent inform them that digital purchases also cost real money. One out of ten young people says that they have bought something online that they initially thought was free and half of young people have bought something online in the last three months.

Let the digital accentuate creativity
Another myth is that mobile phones and tablets inhibit children’s creativity, compared to Lego for example. If you take a closer look at a box of Lego, it states exactly what to build. Compare that to Minecraft, for example, where there are no boundaries for what you can create with an infinite number of ”lego pieces”. The next generation's digital platforms will without a doubt challenge the physical world’s limitations regarding creativity.

84 % of the children in Sweden aged between 5-8 years old have access to a tablet.
50 % of our users have bought something from the internet during the last three months.
You can’t just go to an ATM if you are out of money

Prepare your children for the grown-up life
The way you can learn mathematics, balance of your mind and football is the same way that you can learn to handle your economy. A good way to lear the children about economy is to give them the liberty to questioning and think for themselves. If during the children's childhood we give them the opportunity to make their own choices, they will be able to make succesful or horrible purchases. Even the bad purchases will help the children to learn and develop when it comes to economy. Maybe they will change their desicions next time. Give the children the liberty to choose for themselves.

Create the opportunity to earn an extra coin
By giving the children tasks at home and school, they will be learning that getting money often demands some kind of effort. When the children earn their own money, they will understand its value and a feeling of owning their own money. It can also create a companionship within the family when everybody is helping out. The children should not get paid for everything they do. They can then easily think that as soon as they do something they will be rewarded with money.

Learn and play
To play with money and play games like Monopoly is a good way to introduce new terms and create an understanding for expenditures and revenues. Buying/selling games at home gives the children an insight with concepts like money and trade. If you have any older children they can start to invest in real or fictional companies, and create a game where you compare with the real trading market. Compete and see who succeeds ”investing” money in the right company!

Give a saving bonus
By giving the children an interest rate for their savings, you will increase the opportunity that they will save money. You have come a far way learning the children about money value if they understand that it is important to save and it will take time to achieve the amount that an expensive item costs. Let the children create their own savings goals. Let them know that saved money increases as time goes by. That is a realistic image of how the world looks today.

When the money run out
Sit down and have a chat with your child if there is not enough money to buy certain items. Talk about why there is too little money. Does your child get too small amounts, or does he or her spend their money too easily. Unpredicted expenditures is a matter, but if you give the child the impression that they always can get more money, they will never learn the money's true value.

Encouraging the stuff you want to see more from, is the best way to affect children's behaviour.