The biggest mistake parents can make is to satisfy their children’s every whim. This fosters an attitude toward money as something given and automatically available, disconnected from effort, planning, and choice. This was commented on for BNR by Rositsa Wartonick, founder and director of the Financial Literacy Initiative Foundation, in an interview for the “Before All” program on BNR-Horizont.

“One of the main long-term problems that arises is related to one’s attitude toward money and the world as a whole. The child does not learn to distinguish between wants and needs, nor to plan how to achieve what they want. In fact, this is at the core of good personal finance management — knowing that not everything is possible right away, but almost anything can be achieved with a plan and patience,” she said.

Wartonick believes that the introduction of the euro is a good opportunity for families who rarely talk to their children about money to use this change as a natural occasion for such a conversation. “Children are much more adaptable. From their parents, they can learn how to compare prices, how to plan expenses, and what the real value of money means — regardless of the currency.”

She emphasized that financial literacy is shaped by a combination of the family environment, school, and the child’s social circle. “It is a basic life skill, regardless of the profession one chooses. Fewer and fewer parents rely on the idea that children will ‘somehow’ learn to manage money once they grow up.”

According to her, it is important for children from an early age to start understanding the difference between a need and a whim. “Many young people who impulsively take out quick loans do so precisely because they lack this foundation — the ability to delay gratification, to evaluate, and to make informed choices.”

As the child grows older, the period for which they receive pocket money should also change — from shorter to longer intervals — so that they gradually learn to manage a budget and take responsibility for their financial decisions.

Rositsa Wartonick also emphasized the need for more systematic financial education in schools. “This is a strong and effective tool. The European Union’s strategy for financial literacy recommends that the topic be part of school curricula. Bulgaria is not lagging behind — the subject ‘Technology and Entrepreneurship’ already includes elements related to personal finance management.”

It is also useful for children to learn about digital payments — including through the use of payment cards — but always in combination with clear rules and conversations about responsible money management.