Parents should give their children pocket money and talk about it openly with them. This is what Erste Bank boss Gerda Holzinger-Burgstaller now advises. Cash is preferred over a debit card.
“Learning to live with money as a child works better with cash, research has shown that,” said Holzinger-Burgstaller in an interview with the “Standard”. Younger children in particular would find it difficult to understand money. “When money is put into a piggy bank or spent in a store, children can learn that money is set aside or saved for a later wish, or that the money in the store diminishes and is not available indefinitely,” explains the Erste Bank. boss out.
For this reason, pocket money should not be given indefinitely. “This is the only way children can learn that money disappears through consumption.” “In Austria, people still often say that they don’t talk about money. That’s actually a very stupid statement. We need to do exactly that and talk about money,” said Holzinger-Burgstaller.
Future fund of 1000 euros
As an example, she gave examples of where the money actually comes from and what it means to have to plan for it. The bank boss also proposes a future fund in which each child receives 1,000 euros from birth. “(…) This money is compulsorily invested in the capital market, in consultation with the legal guardians.” The deposit costs are paid by the house bank. From the age of 18 you can access the depot yourself.
The Ministry of Finance should make around 80 million euros available for this – according to it, a “manageable amount for measures to promote the capital market”. Saving is “part of the precaution, but not the only best instrument for a long period”.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
