Children in Switzerland are first introduced to the topic of money and managing finances by their parents at an early age.
A report by the Credit Suisse bank says that pocket money is an important aspect of financial education and that most children are allowed to spend it however they choose.
“Parents see this area very much as their own responsibility,” the report says. “Only a relatively small number of parents teach saving for saving’s sake as a core element of financial education.”
Financial education is led by three key principles, according to the study: Money is an equivalent value for services provided; money determines the limits of personal consumption; but money is not “the be all and end all”.
Age of seven
On average, children are allowed to make small purchases of their own for the first time at the age of seven. And a large majority of children regularly set aside at least some of their pocket money although they rarely have a concrete savings target.
Electronic devices and mopeds are among the most popular products for those with a clear goal of saving money.
“The study also showed that children are more sensible than many parents would initially think,” concludes the bank’s press release.
On average a ten-year-old is given CHF14 ($14.5) a month while a 12-year old gets CHF23, according to the study published on Wednesday.
It found differences between the majority German-speaking and the French, Italian and Romansh-speaking parts of Switzerland when it comes to the amount of pocket money.
The Pocket Money Studyexternal link is based on two separate online surveys, involving more than 14,000 adults.