Imagine this: your six-year-old child receives their first pocket money and rushes into the shop. Their goal: the giant LEGO dragon! What happens instead? They buy three tiny packets of chewing gum that are soft after ten minutes – and the dragon remains out of reach.
The result: tears of realisation and an empty wallet.
That’s exactly the point: these small, painful failures are worth their weight in gold! Because as long as the financial decisions are still manageable, it’s perfectly fine (and even important!) for your child to learn through trial and error. Failure with chewing gum is painful, but harmless. Failure with the first rent is more complicated.
The right way to handle money is not innate, but a skill that everyone must learn. This includes setting priorities, budgeting and using money responsibly. Early experiences with money allow children to learn the consequences of bad decisions with small amounts before they have more serious consequences in adulthood.
It is best for parents to give their children more and more responsibility in many small steps. And the earlier you start, the more small steps are possible.
What does «early» mean?
The age at which children should have their first experiences with money is very individual. Children are not all at the same stage at the same age, and not all parents think the same time is right.
Although every child has their own pace – and you as a parent know best when your child is ready – you can use the following rule of thumb as a guide:
We recommend systematically teaching children to take responsibility for their own money by the time they start school (around the age of 6) at the latest.
At this age, children develop the necessary understanding of numbers and are mature enough to grasp the connections between desires, saving and spending. Start with small weekly pocket money amounts so that your child can learn to manage their own budget in short, manageable steps.
This is what matters when it comes to pocket money.
Clanq Kids Banking supports you
The Clanq app makes the process of learning about money tangible. Whether it’s their first small purchase or saving for a bigger goal, Clanq Kids Banking Lite offers a well-structured framework for their first experiences with money. With the help of digital piggy banks and chores, children learn first-hand what it means to have money at their disposal, to spend it or to save it. Parents accompany them every step of the way.
To support this important lesson in «spending and saving», we have developed an exclusive e-book series. In illustrated stories, our St. Bernard puppy Clarry experiences adventures related to money. This allows you to teach your child the basics of the financial world – from «Why does this cost money?» to «How do I save properly?» – in a way that is fun and memorable. You can find all the books directly in the Clanq app and start reading aloud at any time!
A tangible start with physical money
As a former primary school teacher, I am an advocate of making things that need to be learned tangible first. That’s why I am absolutely in favour of children holding their money physically in their hands at first.
Parents show their children the individual processes in parallel in the Clanq app. This allows children to develop a solid understanding of physical and digital money right from the start. Once this understanding is established, you can move on to the next step: Clanq Kids Banking with your child’s own digital wallet.
Digital money as a challenge in financial education
«When you need money, you go to the cash machine and take it out.»
«Just order the jumper online, then the postman will bring it, and you won’t have to spend any money.»
These are just two of many things I’ve heard children say.
At first, I had to smile, but at the same time I realised how important it is for children to understand that you have to work for money and that it can run out – even if you spend it digitally.
Coming soon: The digital wallet
Clanq Kids Banking is a simple and straightforward way to give children experience with digital money and to give them more and more responsibility in a way that is tailored to their individual needs. It is perfect for children who can do arithmetic and have already had their first experiences with physical money.
We have just launched the Lite version. Kids Banking Lite with «Clarry», the digital wallet for children, will follow in early 2026.
I am already looking forward to our first experiences with it!
Further information on Clanq Kids Banking: clanq.ch/en/kids-banking
