Five tips to teach money wisdom to your child starting school

The start of school is a big step forward both for the child and the family. In addition to buying a backpack and school supplies, you should also consider opening a bank account and ordering your child’s first bank card. Here are five tips on how to teach your child the basics of financial wisdom and how to make the process of using a bank card as smooth as possible.

1. Involve your child in the family finances

Every parent knows best when to order the first bank card for their child, how to talk to them about money and how much say to give them, but the sooner you involve them in money matters, the better. One of the biggest mistakes you can make when it comes to your child’s financial wisdom is to keep quiet about money. This can make your child feel that money is unimportant or something to be feared or hidden. For example, talk to your child about how water and electricity consumption or shopping trips affect the family’s spending. Talk about where the money comes from and where the money goes.

2. Teach your child how to use their bank account and card responsibly

You can open an account for your child as soon as they are born, but you can order a bank card for them from the age of six. Opening a bank account of their own means a certain amount of independence for your child, but it should be remembered that having a bank card also requires the ability to manage money. Before your child starts school, it is a good idea to explain the basics to them and go through the first practical steps together – showing them how to pay with a card and withdraw money, explaining what one should and should not spend money on, why one should not tell anyone their card PIN, etc.

3. Introduce your child to mobile banking

It is a good idea to introduce the mobile app to a child who is about to carry out their first banking transactions, as the phone is usually always with the child and it is very easy for them to perform their first transactions via the app. Your child can quickly and conveniently check their account balance without having to go to an ATM or call their parent. When you order a virtual card for your child, you do not need a separate physical bank card, which can easily get lost. In addition, the app will always let you know if there is a transaction in your account or if your limits are about to be reached.

4. Keep an eye on your child’s progress

With LHV, you can choose how much control you give your child over their finances – in most cases it is enough to be able to pay, withdraw, check their account balance, and ask for money. If necessary, you can also allow your child to make payments. As a parent, you also have an overview of your child’s finances: you can see account balances and transactions made, and change limits – cash withdrawal, card payment, and online shopping limits can be increased or decreased instantly, both on a daily and monthly basis. That way, you do not have to worry about your child taking out too much cash or using up all their pocket money at once.

5. Introduce the benefits of a bank card to your child

You can order a free LHV Youth Card with useful extras for a child who is at least six years old. When you order a bank card, it is worth familiarising yourself with the benefits it offers. We know that every euro counts when you are young – in addition to being completely free, the Youth Card also guarantees useful discounts from partners whose products or services young people often use, such as R-Kiosk, Sportland, and Simple Session. Find out more about benefits on the Youth Bank page.

Opening an account and ordering a card for your child is super easy with LHV. You do not need to visit a bank office to do this – you can open a child account in the mobile app or the Internet Bank in just a few minutes. There is also no need to order a bank card in physical form, as the LHV virtual card allows one to carry out all the necessary transactions on a smart device without having a plastic card. Opening and using the account is completely free, and the Youth Card also comes with a number of benefits, purchase insurance, the chance to win pocket money or to accumulate money in the Growth Account with every card payment.

Read more: lhv.ee/child-account