How to handle money is taught mainly by parents, Czech children admit

Feb 28, 2023

How to handle money is taught mainly by parents, Czech children admit

The persistent phenomenon of insufficient financial literacy continues to affect many Czech households. As a result, people make erroneous decisions, such as excessive consumption, choosing unfavorable financial products, or obtaining ill-considered loans. The solution might lie in financial education starting at an early age. Sufficient financial literacy can protect individuals from imprudent behavior in adulthood. However, according to a survey by EOS KSI involving 632 children aged 12 to 16 from across the Czech Republic, children claim that they learn more about financial literacy at home than at school.

The low level of financial literacy among Czechs is not a new revelation. Many households struggle with debt, often leading to endless enforcement proceedings. Therefore, discussions about financial education in schools, supplemented by diverse educational programs, are increasingly becoming part of professional and public discourse. The importance of financial education for children is also supported by the Czech Banking Association's survey results, which indicate that 54% of Czechs believe that children are not sufficiently educated about finances within their families. "Developing financial literacy at a young age is crucial. It's not uncommon that during school events, we realize that many children have no idea what money is, where it comes from, or how to use it correctly. This not only poses a risk of making wrong decisions but also exposes children's financial naivety to exploitation," says Mgr. Jakub Černý, director of Masaryk Elementary School in Debř, Mladá Boleslav. Reflecting on children's cognitive abilities based on their age, Mgr. Ladislava Malířová, director of Tetín Elementary School near Beroun, also adds, "Even in kindergarten, children play at shops – selling, buying, albeit based on their imagination. Yet, at this age, they gain their first experiences with financial literacy. From the first grade, as they become more adept with numerical values, they gradually understand the function of banknotes and coins."

With over half of Czech children, parents discuss money matters at home.

According to the EOS KSI survey, money is important for 85% of the respondents. "A positive finding is that over half (58%) admit that their parents discuss finances with them at home. Seven out of ten children (73%) receive pocket money from their parents, and 73% of them receive more than 200 CZK per month," comments Vladimír Vachel, managing director of EOS KSI. However, not so encouragingly, three-quarters (75%) of young respondents claim that no one teaches them how to handle money at school. Additionally, in the survey, children admit that they spend most on food, followed by clothing and cosmetics. If they suddenly received 100,000 CZK, only one out of a hundred would spend it all. Most often, they claim they would spend part and save part (46.5%) or save it all (42%).

Educational projects paving the way to a better future

Several educational projects in the Czech Republic aim to improve this unfavorable situation. One such project is ManoMoneta. "The project helps children aged 9 to 13 learn to manage money in a fun way and prepares them for the realities of adult life in the financial world. It also provides teachers with high-quality educational materials, enabling them to introduce financial issues to students in an engaging manner," explains Vladimír Vachel from EOS KSI. Schools consider similar programs crucial. "The activities that professionals bring to school are beneficial because children perceive them differently from teachers. Students discuss and ask a lot of questions during such lessons," shares Ladislava Malířová from Tetín Elementary School.

Teachers can download necessary educational materials for free from the ManoMoneta website and then engage students in a game using knowledge cards featuring terms such as budget, invoice, bank, debt, money, or savings account. "Our goal is for children to experience, through games and realistic life situations, what awaits them in adulthood," adds Vladimír Vachel, mentioning that teachers have the option to request a free consultation or a demonstration lesson through the project's website.

The survey involved 632 respondents aged between 12 and 16 and took place online in December 2022. Participation was limited to this age range.

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How to handle money is taught mainly by parents, Czech children admit

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