Not just "don't waste": what have we learned from the younger generation about money and saving?
They are growing up in a world where you can order almost anything at the click of a button, they are connected and up to date with what is happening in the world, exposed to trends that change at the speed of a TikTok video - and what their friends have is constantly in front of their eyes. On the other hand, when you give them 50 shekels and ask what they will do with them, it turns out that the younger generation sometimes has very surprising answers about money.
In collaboration with Bank Hapoalim, we visited Junior City, a complex initiated by the bank, to find out how the younger generation makes decisions regarding their money. We presented them with several common dilemmas: spend now or save? Wait for something we really want? What do we do when all our friends already have it? The children's answers show that it may be time to upgrade the way we talk to them about money.
50 shekels: what to do with them?
The first question was simple: you received 50 shekels that are yours alone. What will you do? Niko Friedman (9.5) knew exactly what he wanted: "I will buy a shirt with them." Ariel Cohen (12) planned to check the PlayStation store to see what fit the budget. Others chose not to buy anything. Arbel Bardugo (8.5) said she would keep the money "in a piggy bank for something special," and Lorin Dan (12) set a clear goal: "I would save, because I am going to Eilat soon."
The dilemma: when funds are short
The next dilemma was more challenging: you have 100 shekels, but the item you really like costs 130. Arbel chose to wait: "I would wait until I earn exactly this amount." Elin Dan (13) suggested either waiting or asking parents to contribute. When asked what is better—100 shekels today or 120 shekels in a week—Ariel summarized the idea of delayed gratification: "Patience gives more."
Children grow up in an environment of instant gratification. In this world, the ability to wait becomes a vital financial skill. Instead of settling for "it's expensive" or "don't waste," we should discuss the questions behind the decision: Why do I want this? Is it really important to me? Is it worth waiting?
Social pressure and learning from mistakes
When asked if they feel obligated to buy what their friends have, one teenager responded: "If it doesn't suit me, I don't have to buy it." Ariel was more nuanced: "Not necessarily, only if I really want it and can't live without it."
Making mistakes is a way to learn. When asked if they ever regretted a purchase, Arbel formulated a rule: "See if we like it first, and don't spend money on unnecessary things." The goal isn't for children to never spend, but to learn from the experience. If they buy and feel disappointed, they will think twice next time.
Saving as a habit
We found that children often save even without a specific goal. "I am currently saving but I don't know for what," Arbel said. "For a birthday, for example, I'll likely get money, so I'm saving it until I want something special." Ariel keeps money aside for new book releases. Another girl turned saving into a habit, asking her parents to transfer her monthly 150 shekel allowance directly into a savings option.
Instead of just saying "no," we can talk about "how." Children are finding creative ways to negotiate, from "begging" to proposing a "fifty-fifty" split or explaining why they truly need an item. Managing money in an adapted environment helps children understand financial dynamics and prepares them for future responsibility.
In collaboration with Bank Hapoalim.
