Financial literacy for children: how Ukrainian parents can raise a smart consumer in a world full of marketing

Our children are growing up in a reality where advertising begins to shape desires even before a child utters their first words. Colorful cartoon characters, sweets in bright wrappers, toys that "everyone has" — all of this has long ceased to be just goods. These are carefully thought-out marketing hooks that form consumer habits from early childhood.

In such conditions, financial literacy is no longer an additional advantage — it is a basic life skill. It's not just about money, but also about the ability to make decisions, analyze, refuse, wait and plan.

Despite the fact that I am an expert in finance, at home I am a mother of six children. And every day in practice I combine financial theory with real life, in which even cartoons sell. The older my children get, the clearer I see: they encounter marketing earlier than they start reading.

In our family, the word "budget" sounds more often than "candy". But this is not a limitation, but a reality in which I raise my children. Because along with love and care, one of the most important skills they should receive from me is an understanding of the value of money. And financial education should begin not with banking terms, but with simple, sincere conversations about choice, price and value.

Research shows that children begin to recognize brands as early as 18 months, and by the age of 8 they have clearly formed consumer preferences. And these preferences are not formed by chance — they are formed by advertising campaigns.

An example is the recent boom around the Labubu toy. It was not advertised using classic methods: there were no large advertising campaigns or outdoor advertising. A few viral videos on TikTok, short reviews on YouTube, and active discussion in parents' chats were enough. Children started asking for "Lyabubu" not because of the uniqueness of the toy itself, but because it quickly became a symbol: "everyone has it — and I need it". This is how modern marketing works — through a sense of belonging, fear of being "out of the group" and emotional pressure among peers.

What can parents do to raise a child not just as a consumer, but as a conscious person who knows how to make choices?

Here are a few simple but effective approaches that work in my family:

• Personal example. Children see how we spend, plan purchases, and talk about money. The example of parents is the strongest tool for education;

• Frank conversations. Discuss every purchase with your child: why we buy this, why we refuse. Ask questions: "Why do you want this?", "What will it give you?", "Is it worth waiting?"

• Practice on your own experience. Give pocket money and allow the child to dispose of it independently — even with the right to make mistakes;

• Joint budgeting. Involve children in planning family expenses, talking about prices, purchases and financial goals.

• Critical thinking. Watch commercials together and analyze them: "What are we being imposed on?", "Why does this character hold this particular toy?"

Psychologists emphasize that children who learn to treat money consciously from childhood have a higher level of emotional intelligence, better understand the consequences of their decisions and are more resistant to external pressure — including marketing.

In a world where marketing never sleeps, our task is to raise children who will not just be skilled consumers, but conscious people capable of making their own decisions. After all, financial literacy is not about money. It is about values, maturity and responsibility.

Start today — with simple conversations, joint decisions, sincere dialogue. Because a smart consumer is a future independent and responsible adult. 

Olena Sosiedka