Money plays a major role in shopping. There are a few tricks to ensure that you don’t spend more money than you want to. Think about what you need before you go shopping. Write everything on a shopping list. You can then write the prices on this list in the store. Before you go to the checkout, add up the prices. That way, you know exactly whether your money is enough. Of course, responsible money management also includes saving. Do you already have a piggy bank in your room? Please make a habit of saving! At the end of the month, put your remaining pocket money in your money box. Plus, you can add something for every euro…50 cents, for example. Children learn from their parents Board games for the whole family are a great way to learn more about money. You think it’s bad to play with money? Quite the contrary! We believe that the more you play with fake money, the better! Monopoly is, for sure the classic money game and we probably all know it. In addition to this classic, there are plenty of other games that you can play with your parents. For example, “All about pocket money” for children aged 6 to 10, the “Pocket money game” from age 6, and “Let’s play shopping”, which playfully introduces children from the age of 4 to these topics.

My older daughter recently asked me, “Mom, who earns more – Elon Musk or the boss of Amazon?” What? And this at the age of 9…. “Dude, what’s up?” I thought. How does she know about Elon Musk and Jeff Besos? Would you have known the answer? My mouth hung open and I was speechless. I really celebrated her for this question! Children are interested in money. Money Money Money. Regardless of whether you talk to them about it or not. How nice would it be if you were your child’s first port of call when it comes to money? Not the neighbor who thinks money sucks. Or your colleague who says that money spoils one’s character. Or your brother, who is always broke. That your child automatically asks you when it comes to money. Like with Seggs. You don’t want grandma explaining that either… So get talking to your kids, nephews and nieces about money! It’s really fun! My podcast today is all about how you can talk to children about money. Learning without it being about learning. Like a scoop of caramel raspberry ice cream that you never get tired of. You learn: Why you should talk to children about money When should you start talking to children about money How to start in a playful way What role does pocket money play and how much should it be? I also talk about how your child learns to negotiate and there’s a cool hands-on challenge for your summer vacation.  Feel free to share this episode with other parents, grandmas, grandpas, aunts or uncles.  Enjoy and relax!

What to consider when starting out with your child’s finances When a child enters your life, your life changes step by step. You grow into the role of mom, learning new things every day that weren’t part of your daily routine before. When my first daughter was born, I felt totally helpless at the beginning. A baby like that is so cute, of course, but how does it all work? Does it break when I lift my bottom up to change a diaper? What does the crying mean? How much does it need to sleep? Do I have to talk to him? Does he even hear me and see me? What do I do if he doesn’t stop crying? You are given a child, but no instruction manual. Your child and you learn new things every day, the days pass by like hours, and when you next look at the calendar, six months have passed. Once the initial excitement after the birth has subsided and you have settled into your new role as mom and dad, you slowly find your way back into life and can now take care of all the questions that have been left unanswered over the last few weeks. There are still the many envelopes with money from the birth to help with the child’s finances. You don’t really have time to deal with them now…   You might think that it’s better to put money into your savings account quickly and take care of your child’s finances when you have more time. Stop! As a mom of two, I can set you straight. Don’t put it off until there’s “more time” because there definitely won’t be. My recommendation is to take care of your child’s finances before it goes to childcare. It’s not difficult and doesn’t take long. Don’t let your excuses about it not working out right now stop you, but make a clear decision to take care of your child’s finances! Which 3 points are essential for your child’s finances? You have the clear intention of giving your children the best financial foundations so that they can lead an independent life. You want to allow your children to go abroad if they want to, to get to know real life, other people, other cultures, and other lifestyles. I remember the first big trip I took outside Europe. That was over 20 years ago and I flew to New York on my own. What a thrill that was for me! That was a time when there was no mobile internet. Can you imagine those times? I went to cafés to check emails and write. I then arrived alone at JFK airport and met two women at immigration, with whom I took a cab to Manhattan. I looked out of the window in amazement and was totally blown away by the world I was immersed in. For me, who originally came from a small town, it was totally crazy. And do you know why I could afford it? Because my mom had saved a bit of money. At least there was enough for the flights. The accommodation was a completely different matter and totally adventurous. In order to give your children financial freedom, it’s really important that you pay attention to these 3 points. 1st must-have for your child’s finances There used to be savings accounts where you deposited money for your children. You held a real book in your hand where all the credit was entered using a printer. I remember clearly that at the beginning of my training, I operated in credit and was always amazed at what was printed in the books. As there is hardly any interest in daily accounts at the moment, you have a wide choice of accounts that you can use. Today, I recommend that you open a modern electronic savings account. You can easily open one online. You can, for example, set up a current account, into which you then pay everything you received for the birth of your child. With this account, you have a great basis for being able to react flexibly to your children’s wishes at any time. At some point, in addition to the day-to-day necessities of life, you will have to face other, higher expenses. I didn’t want to get my driver’s license until quite late, at 19. I was really glad that my mom had set up a savings account from which I could simply take the money. I think a driver’s license cost around DM 1,500 back then. This corresponds to EUR 750 today. My mom did not put any money into the second must-have.[/norebro_text] 2nd must-have for your child’s finances Having money available at short notice is really important but at the same time, I recommend that you start elsewhere. In the former, you currently get almost no interest. In the long term, this is not a good basis because your money will become less and less due to the inflation rate. So what can you do to invest money for your children? I recommend that you open a custody account and invest money regularly, which will earn you a good interest rate. If you start immediately after birth, you can give your child an almost 6-figure sum by the age of 18 with a savings contribution of EUR 200. And that is with a current annual interest rate of just 6%.[/norebro_text] If you can’t afford it right now, ask the people around you for support. For example, your parents, grandparents or friends. 3rd must-have for your child’s finances The first two must-haves were about investing your children’s money. This is extremely important but, at the same time, you can also keep an eye on other topics. Namely, what happens when certain crises occur in the lives of you and your children? These can be accidents that have health consequences for your child, or something similar. When I was about 10 years old, I went to the orthodontist

When you were at school, did you wish there was a subject that taught you how to handle money properly? I wished the subject of finance had been taught at school. It would have saved me a lot of detours and time. That’s why I launched Schulgold together with my co-founders Karolina Decker from FinMarie and Dragos Nedelcu. Schulgold is a digital learning platform for students that is used by teachers in classrooms. We founded Schulgold to bring the topic of financial education into schools. During an interview, I was asked exciting questions about financial education, which I would like to answer in today’s podcast episode. Do we need financial education as a school subject? Absolutely! Over 50 percent of people in Germany have not received any financial education. This is a huge challenge. Children do not learn the meaning and value of money at school. Because of this lack of knowledge, they are often unable to relate to money. They also don’t learn how to build a life of financial abundance. There are many aspects of financial illiteracy in Germany. What basic knowledge should we have? It is extremely important to start by looking at the value behind money. In other words, how much do certain things that I want cost? Secondly, you need to understand how much time a person must invest to create this value. It helps to realize that the material value of things is very closely linked to lifetime. And this is also the link to the third insight: Time that we cannot spend with our friends and family can lead us to feel unfulfilled. Fourthly, we need practical knowledge on how to build our wealth and what steps we need to take to do so. What are the effects of a lack of financial education? People are not naturally in a position to make sound financial decisions. They do not develop an understanding of money because they do not know its value. Financial education also includes dealing with credit. There is a lack of education about the negative spiral that debt can set in motion. Don’t buy anything you can’t afford! If I don’t learn how to handle money strategically from the outset, I will find it difficult to build up my wealth. As a result, I won’t be able to live in the financial abundance I would like to live in. In addition, a lack of financial education means that people don’t realize that they, alone, are responsible for their financial situation. They look for someone to blame for their situation. Isn’t a financial literacy course at the age of 18 good enough? In my experience, this is not good enough at all because we are already very far along in our personal development at the age of 18. By that time, we are very likely already the “product” of our environment. If a child grows up in financial circumstances that are characterized by debt due to loans or bad feelings about money, then their own financial path is negatively preloaded. As the child does not know that there are “other” financial paths, the familiar ones are taken. The topic of financial education must absolutely be taught in schools in order to create better opportunities for our children! Is the crucial nature of financial education underestimated in politics? Certainly! If people do not learn early on that they bear full responsibility for their financial situation, then one consequence of this can be that people rely more on social systems and then “burden” them in the long term. The number of people in debt has risen in recent years. What are the biggest temptations? Do you know how high the debt in Germany is? It is currently over 2 trillion, 44 billion euros! That means a current sum of EUR 24,600 per capita. Debt is increasing by almost EUR 10,000 per second! These figures are from 15.07.2020. You can find out about the current level of debt at any time on the page The Taxpayer. Debt is increasing every day because people do not know and in some cases have not understood the important basic principle: Only buy what you can afford! In the past, I didn’t know the difference between “good debt and bad debt” either. There is huge misdirection in the economy, which entices people with zero-percent financing and makes it an “it” factor to buy certain things on credit. Banks and commercial enterprises are tempting people with cheap consumer loans, and people are not being honest with themselves and not admitting that they cannot afford certain things at the moment. It is important to develop alternative ways of fulfilling consumer desires without using financing. It’s no good at all to pay back a vacation you take today over the next one to three years. How are you going to afford a vacation later if you can’t afford it today? For me, financial education is the basic prerequisite for a fulfilling and successful life. What can people do if they still want to go on vacation? And how can I buy a car with little money, for example? If you want to go on vacation or buy certain things even though your account balance doesn’t allow it, you can use the following alternatives: If you want to travel and don’t have any money, use systems such as Couchsurfing or “work and travel”. Start saving for your financial wishes in a separate account early on. Use marketplaces that offer used items at a low price. Buy a car that is older. Take a look at the everyday situations in which you can save money. This could be your daily coffee-to-go, for example. Develop ideas to increase your income. People with a lower level of financial literacy are more likely to take out expensive loans, save less for their old age and often don’t even know what effective interest rates they pay on loans. Yet these are supposedly simple concepts that would at

Do you think about what financial topics are really important for your children? Do you want to save for your child but don’t know what the right amount is? Does everyone give you different advice, but you’re unsure? Why you learn so much from your child (before finances even come into play) When your child is born or a child enters your life in a different way, a new chapter begins. You take on a completely new role as a mom or dad that you grow into. Even if your pregnancy or the mental preparation for adopting a child serves as a warm-up, this theoretical knowledge is far removed from what will actually face you in life with full love. From one day to the next, you are suddenly in a new role in life. Until now, there has been no mental preparation training for what awaits you. You learn a great deal every day when it comes to your parenting skills. This starts with diaper changes, guess-what-the-baby-has games, oh-god-hope-he’s-ok thoughts, reading aloud, playing, romping, being there, and giving love and mental support to your child in crises. As your child grows day by day, so do you! You want your child to do well and be the best mom or dad there is. Your child is your greatest teacher because they often take you out of your comfort zone and are unconditionally honest. When your baby is born, it initially requires its basic needs to be met, such as drinking, eating, sleeping and feeling safe. The only means of communication they have is crying. This time is about you getting to know your baby and your baby getting to know you. Wealth accumulation for children is a topic that grows with your child. Even though your baby needs you, it is also your greatest teacher because it teaches you what it means to love unconditionally, no matter how late it is and how little sleep you have had. You get to know new sides of yourself and you slowly grow into the responsible role of a mom or dad. Once the first few weeks and months are over and you’ve become used to the idea of having a child, you start to deal with various organizational issues for your child. In addition to childcare options, there are also financial considerations. This is a topic that will grow with your child. What your child’s life stages have to do with your finances At some point after the birth, grandmas, grandpas, aunts, uncles and friends will come to you because they have money they want to give your child. This is the moment when you start thinking about your child’s finances for the first time. You could simply run off, open an account, deposit the money and that would be the end of the matter. But before you do that, I recommend you take a look at the individual phases of your child’s life. Each phase has different financial challenges. Baby phase: Your child doesn’t need a lot of financial outlay in this phase. Diapers, toys and clothes are the things that cause the most expenses. You will probably be able to cover these things from your current income. Toddler to preschooler: Your child discovers the world and becomes aware of themselves. At this stage, your child does not yet have many financial needs. Hobbies such as swimming, horse riding, ballet or field hockey come into your child’s life at this stage. The first major expenses are the costs of childcare. These depend on which federal state you live in and how much you earn. Schoolchild to 6th grade: In this phase, your child has conscious financial needs. They see things other children have, e.g. smartphones or fancy clothes, and want to have them too. In addition to the “normal” costs, there are additional costs for school trips and other hobbies. If you want your child to go to after-school care, there will be costs that depend on your income. Student to 10th grade or high school graduation: Your child discovers certain talents and practices them regularly. These are activities that lead to additional costs. Your child may already be taking their moped driving license, which will have a significant impact on your finances. Your child makes a joint decision with you as to whether they will take their A-levels, start an apprenticeship or go to university. Apprentice or student: In this phase, your child learns a profession or acquires further knowledge by studying. This is the time when you will incur the most costs. Additional costs may include a driver’s license, their first car, rent for an apartment, or living expenses in another city. There are various calculations that show how much a child costs on average up to the age of 18. These are the regular costs without special expenses, such as a driver’s license, rent, car, etc. How much do you think a child costs? On average, the sum is EUR 130,000 up to the age of 18. Further, it is important to state at this point that this does not include “special situations” such as studying at home or abroad. 3 concrete steps you can take toward building your child’s wealth Before you start saving anything, it is extremely important for your financial success to take a strategic approach. Strategy means that you think in advance about what your end goal will look like and what individual steps you can take to actually achieve it. Defining an end goal makes it much easier for you to achieve it because you can plan your specific steps. Step 1: Get an overview of the financial costs that can arise for children When children are at different stages of their lives, various additional costs are incurred depending on the phase of life. In this step, you need to get an overview of what these specific costs might be. Think about what special events may occur in your child’s life.