Talk to Your Children about Money!

Almost half of people do not feel confident enough when it comes to making financial decisions, according to the 2024 Hungarian survey by Provident Financial Services Ltd. No one is born knowing how to manage money.

However, psychologists and financial experts agree that laying the foundations of money management awareness from an early age will go a long way towards ensuring that future generations can navigate the world of investments and savings with the necessary confidence to make responsible financial decisions.

The financial services research also found that almost half of those surveyed believe that it is the responsibility of schools to lay the foundations for future financial literacy: 48% of people said it was the responsibility of education, 33% of people said it was the responsibility of financial institutions, 29% said it was the responsibility of the state, and 18% said it was entirely up to individuals to decide whether they were able to manage their money. Meanwhile, as parents, we have many opportunities to help our children learn the basics of financial literacy and to make them aware of the very important truth that money is not an infinite resource. By focusing on teaching basic money management skills, we can not only teach children what a monthly budget is or how to save, but also empower them to recognise the true value of money and its role in their everyday lives.

"Financial literacy at a young age will help future generations to be able to save, make long-term financial plans and make wise choices about their financial options. Among other things, Provident Financial Services Ltd. is working to ensure that the financial awareness of the next generation is stronger than that of their parents or grandparents, as this is the key to enabling them to set prudent and forward-looking goals for their finances, even as young adults. Each year, our colleagues participate as professional speakers in a series of educational events aimed at bringing the world of money to primary and secondary school students in a playful and accessible way, and at raising awareness among parents and teachers of the importance of developing financial literacy. When developing our programme for financially invisible social groups, it was also very important to create a financial education material for people excluded from the credit market, which would not only help them to become more financially literate themselves, but also to pass on this knowledge to their children", Márta Pálfalvi, Director of Corporate Relations and Communications at Provident, said.