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Parent guide

Teaching children about money

Dutch children receive almost no financial education in school. As a parent, you make the difference. This guide gives concrete activities, amounts and pitfalls per age — based on Nibud research and parent experience.

Why is this important now?

Money habits are formed between ages 3 and 14. What children learn at this age about spending, saving and making choices influences their entire adult life. This is NOT a 'we'll get to it later' matter.

Plus: the current generation grows up with contactless payments, in-app purchases and influencer marketing. Their money reality is different from what you and I knew. Not learning now = later struggle with control.

Basic principles

Four principles for financial education

Before you start with activities: these 4 things do more than any lesson.

Let them really see

Talk openly about your household budget (age-appropriate). Show them receipts, discuss choices in the supermarket. Hidden money matters make it taboo.

Let them do it themselves

Not just explaining — let them choose groceries within budget, manage own allowance, make mistakes with €5 so they don't make €500 mistakes as adults.

Make it discussable

'Too expensive' may be an answer. 'We're saving for this now' too. Be honest about money without burdening children with adult worries.

Watch your own behavior

Children mostly learn from what they SEE, not from what they hear. Impulsive buying and then preaching about saving doesn't work. Your behavior is their lesson.

3 age phases

Per phase: goals, activities, pitfalls

Each phase has different priorities. Not everything at once — build on what fits where your child is now.

3-6 years

Toddler & preschool

At this age it's not about counting or budgeting, but about concepts: money exists, you trade it for things, and some things are more expensive than others. Just basics.

Learning goals

  • Understand that you trade money for things
  • Distinguish 'expensive' versus 'cheap' (relative)
  • Understand that money can run out

Concrete activities

  1. 1

    In the store: show them how you pay with card or cash. Say 'This costs X euros'. Don't explain what a euro is — that comes later.

  2. 2

    Shopping game: give them a fake euro and let them 'buy' in your kitchen. Negotiate prices. Show that one cookie is 1 euro and an apple 50 cents.

  3. 3

    Introduce piggy bank: count coins together. Let them experience 'this pile is more than that pile'. Magnitude > number at this age.

  4. 4

    Junk with price tags: used toy items with price tags. Let them choose with 3 'euros'. Exchange behavior is practiced.

What DOES work

Repetition + concrete objects. Small children understand tangible money better than digital. Games with COINS + PAPER work well.

What does NOT work

Explaining interest, inflation, saving for 'later'. Still too abstract. Also: not letting them actually buy — then it becomes an adult lesson, not their own experience.

6-12 years

Primary school child

Now counting comes into the mix. Children can add, subtract, wait (partially). Introduce fixed allowance, savings goals and choice-making with real-world consequences.

Learning goals

  • Manage allowance without you intervening
  • Can save for something (weeks to month ahead)
  • Choice responsibility: spending money = no longer having it

Concrete activities

  1. 1

    Start with fixed weekly allowance (see table below). It belongs TO them — you don't decide about every expense. If they blow it: no advance. Learned.

  2. 2

    Set savings goal: 'You want a LEGO set of €30? You get €3/week. In 10 weeks you have it. Want it faster: extra chores for small change?'. Visualize time: make a savings thermometer.

  3. 3

    Shopping choice: in the supermarket, give them €5 for 'your choice'. Fruit, snack, something small. Choose within budget. Sometimes they come home with nothing — also learning.

  4. 4

    Own Youth Savings Account: at ING, Rabo, ASN free. 1-2% interest. Let them look MONTHLY in the bankbook (print if needed). 'Look — you now have more than last month!'.

  5. 5

    Week planning: on Monday allowance starts. Let them plan: how much for candy, how much to save, how much for friend's birthday? Write it down — simple forms of budgeting.

What DOES work

Allowance that is UNCONDITIONAL (not tied to chores). Nibud research: unconditional allowance teaches better handling of limited resources. Chores can be paid separately.

What does NOT work

Using money as punishment: 'no allowance this week' for bad behavior. That makes money a power instrument instead of a learning instrument. Also avoid: giving advances — then they don't learn to plan.

12-18 years

Teenager

The exciting phase. Their financial world becomes real: own debit card, online purchases, first part-time job, smartphone subscription. Mistakes have bigger consequences, but learning value is also bigger.

Learning goals

  • Understand and handle own banking
  • Can manage income from part-time job
  • Awareness of in-app purchases, subscriptions, marketing tricks

Concrete activities

  1. 1

    From 12 years: own ING/ASN youth account with debit card. Set limit low (€50/day in week 1). Let them see themselves how internet banking works.

  2. 2

    Smartphone subscription discussion: let THEM choose between sim-only €10 or €30 contract with device. Let them calculate the WHOLE difference over 2 years. Euphoria over 'free' device dies with math.

  3. 3

    In-app purchases: if they unexpectedly spend €50 in Fortnite/Roblox — make NO drama, do have conversation. 'Did you know this? What would you do differently afterwards?'. Learning moment, not punishment.

  4. 4

    Part-time job = budget exercise: first salary €200/mo? Division: fixed % saving (e.g. 25%), fixed % freedom, rest for goals. Let THEM divide — not you.

  5. 5

    Open Okidoky together: 14+ is great for first own ledger. Link to their bank account. Evaluate first month together. Concrete tool for skill.

What DOES work

Ownership + own experience. Teenagers especially learn from CONSEQUENCES of own choices. Spent too much? No way out. Learned for €20 rather than later for €20,000.

What does NOT work

Rescue reflex: they are too deep in minuses, you fix it. Small drama now >> big drama later. Exception: fraud/exploitation by others — then help. But own choice consequences: leave.

Allowance guidelines

How much allowance per age?

Guidelines in line with the Nibud Zakgeldwijzer. For indication — adjust to your family situation and region.

AgePer weekPer monthNote
4 years€0.50€2.17First piggy bank experience. Money is still abstract — small coins.
6 years€1.00€4.33Group 3: concepts of exchange land. Weekly is more tangible than monthly.
8 years€2.00€8.66Saving for small toys (LEGO, trading cards). Visible savings thermometer.
10 years€3.50€15.16Start with small choices: candy, comic, magazine. Decide and make mistakes yourself.
12 years€5.00€21.65Transition to high school. Opening youth account fits this moment.
14 years€10.00€43.30Going out, phone credit, clothes. Discuss broader budget and making choices.
16 years€20.00€86.60Often part-time job on top — allowance as 'basis', job for fun stuff.
18 years€40.00€173.20Becoming adult: full own management. Parental contribution can remain (food/study).
These amounts are guidelines from Nibud for the Netherlands. Adjust to your family situation: in regions with higher cost of living slightly up, with lower incomes slightly down. Consistency (same amount, fixed day) is more important than exact amount.
Concrete tools

Which tools are there?

From analog to digital — what fits which age.

Piggy bank (classic)

3-8 years

Physically tangible. Seeing it get 'heavier' is motivating. HEMA has nice price/quality. Quarterly count together.

Youth savings account

6-18 years

ING Oranje Savings, Rabobank Youth Account, ASN Savings Youth. Free, 1-2% interest, no maintenance fee. Minimum €1 to open.

Own debit card + app

12+ years

From 12 years independently possible. Start with low daily limit (€50). Learn to use internet banking. From 18: adult account.

Okidoky (or Excel)

14+ years

First ledger: categories, monthly overview, savings goals. Free to try. Evaluating the first month together works better than explaining.

Common mistakes

We often see these four things with well-meaning parents — and they work against them.

  • Linking allowance to chores

    'You get allowance if you make your bed' confuses learning-for-yourself with wage-for-work. Research: unconditional allowance teaches better money handling. Chores = separate, e.g. €2 extra for washing car.

  • Intervening in bad choices

    They want an expensive worthless toy, you know it's in the corner within 2 days. LET THEM. The disappointment afterward IS the lesson. You prevent that — and so you prevent the learning.

  • Being secretive about household budget

    'Those are adult matters' or 'you don't need to know that'. Children feel tension around money without context. Do talk age-appropriately about scarcity/choices — that is education.

  • Only about saving, not about giving

    Financial education is also about what you do FOR others. Let them give something: part of allowance to charity, buy a gift for friend. Money as tool for values — not just own possession.

FAQ

Frequently asked questions

When do you start with allowance?

Usually from 4-5 years small amounts (€0.50-€1 per week). Not to learn counting but for getting used to concept 'own money that goes out'. From 6-7 years more serious — weekly, own savings goals possible. Not all children are ready at the same age. Signals that it's time: they ask about money, they get 'more' and 'less', they can wait (delayed gratification).

Should I give higher allowance with lower income?

No. The goal is learning, not compensating. Less allowance often means precisely that they learn to better handle limited budget — a skill they use later. Do be honest that there's currently less. 'We can't have a winter vacation this year. Your allowance stays the same.' — that is superior information, no worry.

What if my child immediately spends everything?

That's... normal and educational. Let it happen. If they ask for extra: 'No, you already had it. Next week again.' No exceptions, no loan. After a few weeks of 'nothing left' they learn to plan. Faster than you think. Not rescuing = not irredeemable.

How do we do it with divorced parents?

Ideally: same allowance amount in both houses, same rules. That requires consultation. If that doesn't work: each keeps own rules in own house, child gets what they get at each. Do discuss together: big purchases, savings goals. Children who live between two systems learn nuance — can be advantage.

Are financial-education apps (like Gimi, Revolut <18) a good idea?

Mixed. Advantages: digital budget insight, parent control possible. Disadvantages: often expensive (€5-€10/mo for gimmicks that free Youth Account can too), lots of in-app marketing, child becomes app-dependent instead of skill-dependent. Our recommendation: first Youth Savings Account at Dutch bank (free). If they're 14+ and want to keep a ledger: Okidoky or a simple Excel — no expensive special kids app needed.

Learn more about family finance?

Okidoky has a separate page for families, with tips for parent-finances. Or start with saving tips to be an example yourself.

For familiesView saving tips