Financial literacy for children through pocket money

Financial literacy for children can be fostered early through open discussions about daily expenses and the value of money. Experts suggest that introducing pocket money around age six allows children to learn about budgeting, saving for specific goals, and the connection between work and income.

According to recommendations from the German Youth Institute (DJI), pocket money amounts should scale with a child's age and needs. For children under six, weekly amounts of one to two euros are suggested. From age six, a weekly recommendation of two euros applies, increasing to four euros for nine-year-olds.

At age ten, experts recommend switching to monthly payments, ranging between 15 and 25 euros, to teach long-term resource management. By age 18, appropriate monthly amounts are estimated to be between 55 and 75 euros. These figures serve as pedagogical guidelines rather than strict rules, allowing families to adjust based on their specific financial circumstances.