Status: 09.01.2024, 16:50 PM
By: Laura Wittstruck
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Many young people fall into the debt trap. In order for children to develop a healthy relationship with their finances, the topic must not be taboo for parents.
With debts behind you, it is difficult to start your adult life. Nevertheless, more and more young people are getting into financial difficulties. This is shown by the Debtor Atlas 2023, published by the credit agency Creditreform. Although fewer people in Germany took on debt overall than in the previous year, the figures rose for the youngest age group up to 29 years.
After all, temptations await in many corners – whether it's the latest smartphone, limited-edition sneakers or the cosmetics range of your favorite influencer. Parents can't always protect their children from it. Nevertheless, they can have a significant influence on how young people spend their savings.
After all, people talk about money
Is the ticket for the rap concert still in it or does it tear too big a hole in the pocket money budget? Many children find it difficult to judge this. It becomes easier when parents talk openly about their own finances. How much do they pay in rent each month and how much does the weekly shopping actually cost? If children see this in relation to their own savings, they may consume more consciously. After all, according to t3n, one's own parents are usually still the most important contact persons and role models on this topic. According to the German Youth Institute, it is also important that children should be allowed to dispose of pocket money freely – and parents should not dictate how to invest it or comment negatively on what they have bought.
Youth Debt: The Internet as a Risk Factor
One click – and the order is on its way. Online shopping is fast and almost too easy for many young people. With Buy Now Pay Later, for example, the minus on the account is not noticeable at first. Here, too, education is important. However, according to Schufa, many young people are well aware of the risk: 88 percent of them see the danger of losing track of their own finances with the payment method.
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Online shopping is becoming less and less complicated – some young people lose track of their own finances. © Alena Kuznetsova/IMAGO
Also risky: influencers who give questionable financial tips. They often pose with expensive cars or in exclusive locations and promise quick money that can be earned online seemingly effortlessly. However, this is usually due to risky business models such as copy trading, which the consumer advice centre also warns against. Here, too, parents should warn and convey that investments are always associated with risk.
Are you looking for valuable money-saving tips? Every Thursday, Merkur.de's "Clever Savings" newsletter has the best money-saving tips for you.
Good relationship with money – the most important tips for parents
Young people with no connection to money are more likely to fall into the debt trap. To prevent this, parents should above all stay in conversation. In summary, you can use these tips as a guide:
- Give pocket money at your disposal
- Talk openly about your own finances
- Don't just associate money with negative things
- Educate about the dangers of online shopping and financial tips from the Internet