Children and teenagers are often sensitive to peer pressure, trends and advertising. And that combination can easily lead to financial challenges. How do you help your child manage money responsibly? How do you ensure they gain and maintain control over their finances? And what can you do if things still go wrong?
"}},{"componentType":"paragraph","title":"Make your child financially aware","richBody":{"value":"Money matters are becoming increasingly complex. We need more and more financial knowledge to keep our finances on track. As a parent, you can play an important role in preventing financial problems for your child. Erica Verdegaal, economist and journalist at NRC, gives parents five tips to help prevent financial problems:
It’s valuable for children and teenagers to experience that money can run out — it teaches them how to plan. As a parent, you can explain that “empty really means empty.” If their money is gone, they’ll need to save up again before they can spend.
Children may want to borrow money from friends or family. That’s okay, as long as they understand what borrowing entails: you must repay on time, sometimes with interest or by doing an additional chore. Being late or failing to repay can cause tension — arguments or uncomfortable situations with friends.
Borrowing more money to repay other debts only makes the problem worse. One loan is used to cover another, and before they know it, they are stuck in a cycle of financial stress. Saving is usually smarter than borrowing. It requires patience, but it brings peace and security. A child who understands this builds financial confidence and is better equipped to resist the temptation to borrow.
Financial problems can happen — sometimes despite everyone’s best efforts. As a parent, you can step in and repay the debt, but that usually solves the problem only temporarily. If your child keeps spending more than they earn, the problems will return.
What does help? Looking at the bigger picture together. Make an overview of monthly income and expenses. Check together whether there is money left over or a shortage, and discuss solutions to prevent issues in the future.
If the problems are too big to handle yourself, or if your child continues to get into financial difficulties, it may be wise to seek professional help. The Schuldhulpverlening is designed for these situations. They help people get out of financial trouble — but it requires commitment: your child must be willing to cooperate and stick to the agreements.
Sometimes, part of the responsibility and financial freedom is taken away from your child to create space for a fresh start. Schuldhulpverlening can only begin when all creditors agree to participate. If they don’t, a court‑appointed administrator (bewindvoerder) may be involved. This person then takes over the entire financial household.
Discuss these tips with your child to help them make conscious financial choices: