Kevin Begon -

How to talk about money with your children

According to our "Ask Your Bank" survey, 70% of parents of young children wonder about this. Between 6 and 12 years old is a good time to start the conversation.

"Children need to understand that the pocket money they receive doesn't fall from the sky: it's the result of their parents' hard work, or an investment. By telling them this, you encourage them to think about the money and not waste it," explains Philipp Bollen, head of estate planning at BNP Paribas Fortis.

Even for the youngest children

You can talk to children about money from a very young age: the trick is to keep it very practical. "Many parents would like to limit the time children spend in front of their screens. Why not give them a few cents each week that they can spend as they wish, and decide that half an hour of screen time costs two cents, for example? They can then save the cents they don’t spend to buy something else. You're teaching them to manage a budget and they're getting a sense of the value of money."

Thinking long-term

Older children can also start thinking about the long term. It's a good time to talk to them about saving and investing. "Explain to them that they can spend their pocket money immediately, but they'll have more in the long run if they save it," advises Philipp Bollen. Two-thirds of 12-year-olds in Belgium receive pocket money. According to Philipp Bollen, it's better to pay this money into a current account rather than giving children cash. "Children learn to manage their money and use a payment card. They get a much better understanding when they see money coming into and going out of their account, and they can work out how much money they need to save to buy the toy or bike they’re dreaming of." In addition, digital payments are safer and account statements allow parents to see what their children are spending their money on.

Talking to adult children

According to the "Ask Your Bank" survey, Belgians are also unsure about how to talk to their adult children about money. Talking openly about their inheritance remains difficult. "If parents don't deal with the matter while they're still alive, their descendants will pay inheritance tax on their entire estate, whereas parents can also make a gift during their lifetime," explains Philipp Bollen. These are delicate questions that need to be addressed early and openly.

Ask Your Bank

BNP Paribas Fortis wants to help you see things more clearly when it comes to managing your money. That's why we asked over 1,000 Belgians about any questions and concerns they had. With our Ask Your Bank series, we address those questions and concerns in a fully transparent way.