When is the right time to start teaching our children how to spend money?

All parents want to provide the best possible life to their children and to make them happy. In their earliest age our heirs usually enjoy any gift, no matter how small it is, however as the time goes their wishes grow greater and greater - the latest tablet, the best smartphone, the newest and most expensive computer game and so on. Should we try to satisfy each of their childish whim, we'd better think on whether we are actually doing something good for our children or we are serving as a bad role model of just spending without thinking of the real cost of the things and the value of money.

How we should teach our children to be reasonable with their money without turning into narrow-minded parents who answer to every child's request for purchasing something new: "And do you know how much it costs?"

Family is where the foundations of financial literacy shall be laid - said Tsvetanka Mincheva, Head of Retail Banking and Member of the Management Board of UniCredit Bulbank. Planning, taking risks, allocating money in such way that to cover certain future needs - all these matters parents have to discuss with their childrenMincheva recommended. She thinks it is good if children understand from an early age that money is a limited resource and if they want something very much, they should set this thing as a goal and start saving money.

When children want nice toys, they should understand that this has its financial dimension - in other words, parents should explain to their children that toys cost money and they have worked hard to earn this money, Antoaneta Curteanu thinks, Head of Corporate, Investment and Private Banking and a Member of the Management Board of UniCredit Bulbank. It is good that we start developing the ability of our children to plan when and what to spend their money on added Curteanu.

Our message as parents to our kids should be: Plan your expenses and think on a way you can earn the money that you want to spend Curteanu advises further. According to her it is also essential to teach children the skill to save, to set always aside a portion of the money they receive as a reserve for the future when they could need much more this money.

However, in case of a special occasion - birthday or another celebration, a child should not be deprived of a well-deserved present, Curteanu thinks. It is important for children to understand that money doesn't grow on trees and they need to work hard for them, she affirms.

Children need to learn to work for their money recommends as well Rossitza Wartonick, Executive Director of Financial Literacy Initiative Foundation. It is essential for children to develop work habits from an early age, and not to expect all their wishes to be satisfied without any efforts from their side Wartonick shares. She thinks parents know their children best and they can see whether their children are by nature spendthrift or thrifty and try to teach them spend their money sensibly and prudently. Wartonick is sure that it is good for children to have their own budget and to learn how to distribute it throughout the month or the week, depending on when they receive their money.

Parents should not forget to buy a penny bank as a gift for their children, the financier Tihomir Toshev recommends. It should be present in the family and the children should know why it is so important to save money, Toshev is convinced. In his words children always want everything, but parents not only have to deny their requests but to explain to them why those are not feasible and what is the impact of an unreasonable or a too great expense on the family budget.

More information for media:

UniCredit Bulbank, Identity & Communications Department

Viktoria Blajeva, Phone: + 359 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Mara Bareva, Phone: +359 2 9264 963 , nbsb/cbsfwbAvojdsfejuhspvq/ch

Beatris Nikolova, Phone: +359 2 9232 528, cfbusjt/ojlpmpwbAvojdsfejuhspvq/ch