How Dutch parents teach their children to manage money

The Dutch are known for being frugal, and it is not unusual for them to split the bill and look for bargains. Children in the Netherlands learn about money and gain money management skills from an early age. In this article, ING bank gives insight into how Dutch parents teach their children to manage money, for instance, the role of pocket money in financial education.

As in many European countries, it is common for children in the Netherlands to receive pocket money. It is the largest source of income for young children, and therefore extremely important in their financial education.

Pocket money to teach financial responsibility

An ING International Survey conducted in 13 European countries into pocket money and savings habits showed that parents give pocket money to their kids to teach them the value of money and how to be responsible with it.

The latest research of the National Institute for Budget Information (Nibud) showed that children who receive pocket money are in fact more concerned with money and financial matters than children who do not receive pocket money. They therefore develop more skills than children who do not have this income on a regular basis.

Starting from six-years-old

From about the age of six, children learn to count at school. At that age, they also start to recognise coins. That could also be the moment to start giving children pocket money. In the Netherlands, the majority of six-year-olds receive pocket money. Further, children most often receive it on a weekly basis, according to the Nibud-Scholierenonderzoek (2020).

Is €1.20 per week too little?

The ING survey mentioned earlier showed that the Dutch are not the most generous when it comes to the amount of pocket money given to children. For example, the average weekly amount for a six-year-old varies from €1,20 - €2,30.

Nibud, Financiële opvoeding in een digitaal tijdperk (2023)

The amount of pocket money increases as children get older, and by the age of thirteen, children receive €4,70 on average per week.

Nibud-Scholierenonderzoek (2020)

Increase in income

As children get older, their income increases. From the age of 13, children in the Netherlands are allowed to work during the holidays, weekends or after school. By working in a supermarket, babysitting or delivering the newspaper, they can earn some extra money.

It is also more common to receive clothing money (kleedgeld) from that age. Half of the high school students in the Netherlands receive clothing money, on average €64 per month, according to a 2020 survey Nibud-Scholierenonderzoek. 

An increase in income could be a reason to lower the amount or to stop giving pocket money. The same survey found that the number of children in the Netherlands who receive pocket money decreases from the age of 16.

Other reasons why Dutch children receive money

In addition to pocket money, it is common in the Netherlands for children to receive money for their school reports, holidays and for doing chores around the house. A large proportion of children also regularly receive money from third parties like grandparents. Additionally, Dutch people almost never punish children by withholding pocket money, according to the Nibud-Scholierenonderzoek.

The shift to digital banking

Receiving pocket money in a bank account is increasingly common. Only half of eight and nine-year-olds now receive their pocket money in cash. The report Financiële opvoeding in een digitaal tijdperk (2023) from the Nibud states that from the age of 12 the majority of children in the Netherlands receive pocket money in their bank accounts. By automatically transferring pocket money to your child's account, you no longer need to think about it.

There is a downside though. Money in a bank account is more abstract than coins and bills. Therefore, it is important for children to be able to carefully track their money in their accounts. 

Give responsibility

Most parents in the Netherlands make agreements with children about pocket money, such as the amount of pocket money and whether it is given in cash or in a bank account. Or, they agree upon what costs the children are responsible for and what they are and aren't allowed to pay from pocket money, for example. Making agreements is a nice way to give children responsibility within certain boundaries.

Want to help your child learn more about money? ING offers free bank accounts for children between the ages 0 - 18. The accounts come with a debit card from the age of six and access to the mobile banking app from the age of eight. With their own banking app, children can follow their money and create savings goals. From the age of 16, they can also pay with their mobile phones. Your child's account will be linked to your own ING bank account, so you can see and manage it via your own banking app.