More parents are opening bank accounts for their children to put their pocket money in, a survey by family spending institute Nibud and Rabobank has shown.
Just half of 8 and 9-year-olds still get pocket money completely in cash, down 25% on 2018, although younger children still get most of their allowance in coins.
Pocket money is a good way of educating children about financial matters in general, Nibud director Arjan Vliegenthart said. “The rise in bank accounts also teaches them how a bank account works, including the risks”.
Talking to children about online safety, such as keeping their login data to themselves, is vital, Vliegenthardt said. “If a grown-up can be confronted with a phishing mail or an sms to transfer money, so can children,” he said.
There is also a danger that criminals could approach children and ask they to deposit money on their accounts via social media in return for payment. That too should be discussed with children, Vliegenthart said.
Just one in five parents talk to their children about dangers attached to having a bank account, the survey shows.
Some 93% of children in the Netherlands get pocket money. The amount has gone for the first time in years, the survey showed, with 7-year-olds getting between €1.40 and €2.30 a week, compared to €1 to €2 in 2018. 11-year-olds are now on between €2.30 to €3.50.
“The best way of learning to handle money is by experience, Rabobank chief digital officer Michiel Kawwitaal said. “They can use their pin card to pay for an ice cream, save up money for a skateboard or a game. As a bank, we think this should happen in a safe environment.”
The survey showed that children who get regular pocket money are more financially savvy and save more than those who are only occasionally given a financial present.
Thank you for donating to DutchNews.nl.
We could not provide the Dutch News service, and keep it free of charge, without the generous support of our readers. Your donations allow us to report on issues you tell us matter, and provide you with a summary of the most important Dutch news each day.Make a donation