Childhood — the most suitable period in order to form the correct attitude towards money. Financial well-being is based not so much on the amount of money, but on the ability to manage, earn and save it. Unfortunately, this is not taught in schools, so parents will have to rely on themselves in matters of financial literacy of their children. Do not neglect this important issue. It is best to develop a small educational strategy that will help protect the child from many mistakes in adulthood.
- Child financial well-being: what parents can teach
- Children and money: a list of children's literature on finance
Child financial well-being: what parents can teach
You can start talking to children about money from an early age. The s should-be-formed idea of money is something ephemeral or that it is evil. Money — just a tool that you need to learn how to dispose of. In many ways, the future financial well-being of your child will depend on this skill.
Let's see how you can teach kids how to handle money.
1. Show your calm attitude towards money
Since money plays a big role in our life, it causes a lot of emotions: from joy to depression. We often tend to overreact to financial setbacks and show it off in front of our kids. Talk about money calmly, don give them power over the situation. This will show the child that the financial side of life is important, but not the most important.
2. Discuss finances with kids
At the same time, you should not keep silence about your income, nor problems with money. Always talk to children about finances: what money is earned, how much it costs, whether a loan is profitable, why you shouldn trust advertising, how money is earned. Talk openly about all these things and about if something the family cannot afford. Of course, you shouldn't go to the other extreme, count every penny and point it to the child. Such behavior of parents instills fear of poverty and anxiety in the child.
The older the child, the more topics for discussion you have. You can talk not only about the financial affairs of the family, but and argue about what money gives, why poverty still exists, what business, credit, mortgage, etc.
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3. Teach your child to save money
Piggy bank — A simple tool for teaching financial literacy. You can start it & nbsp; already at preschool age. It is best if the child collects for some very desirable purchase for him. This will teach him to wait, to choose the very best from many of his Wishlist, it will clearly show that things have their own value. At age 10-12 you can open a bank account for your child, introduce the banking system and basic operations.
4. Teach your child to distinguish between "must" and "want"
Talk to child about that there are obligatory family budget items: utilities, loan payments, food, clothes, education. All that remains can be spent on entertainment and other "wants". Help me understand that sometimes it is necessary to give up momentary desires for the sake of more valuable acquisitions. Not it can always be something material.
5. Teach kids how to shop
Take your kids to the store and include the shopping process.
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Tell them how quality and price correlate, why the the same product can cost differently, what are you guided by when choosing how to make a bargain.
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Advise to stick to the 24 hour rule. If you have a big purchase coming up, it's best to wait 24 hours to think things through. This will help you not to succumb to momentary desires and save you from unnecessary waste.
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Learn to study the product you plan to buy, read reviews, compare prices, benefits in different stores.
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6. Give me some pocket money
Pocket money — this is an opportunity for a child to learn how to handle money in practice. Explain to your child why you can allocate just such a sum of money for pocket expenses (parents pay for housing, food, clothing) and for what you give them to. Meaning of pocket money — teach the child to save and collect the required amount.
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It is advisable to increase the amount of pocket expenses with age so that the child has enough for his needs.
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It shouldn't intervene how where the spend of children. This is his personal finances, but and he must also be responsible for this himself. Mistakes are inevitable, but they will teach the child to correlate his abilities and desires.
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Don't punish a child with deprivation of pocket money. Good behavior shouldn't depend on whether you pay him or not.
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Advise your child where to spend pocket money and how it can be accumulated. But if a child has made an unreasonable waste, don criticize, but and don borrow extra money.
7. Tell your child about how he can earn money
If a child wants to buy something very expensive or to significantly increase his pocket money, he can earn the amount he needs. Think with child how he can earn money: sell his hand-made products, put up ads, clean up neighbors, earn extra money as a waiter.
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Children and money: a list of literature on finance
Financial Literacy — the topic is interesting and extensive. Not always, parents can competently understand some issues and explain this to the child in an accessible way. In books will come to help
We have prepared for you a list of useful literature that will lay the foundations for the child's financial well-being in the future.
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Robert Kiyosaki "Rich Dad Poor Dad for Teens" will teach children to manage their finances.
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Jerry Bailey, Lo Felicia "Your Money" will tell schoolchildren about money, what is a budget and how you can start your own business. From the same series: "Make money grow", "How to spend money wisely?".
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Bodo Schaefer "A dog named Mani" in the form of a fairy tale will teach children financial literacy.
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Joline Godfrey "How To Teach Your Child To Handle Money" will help parents talk to children about money and learn how to spend it wisely.
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Adam Ho, Keon Chi "Children and"money. A book for parents» will help raise successful children who know how to handle money.
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Tatiana Popova «Magic ATM» will tell children in a fascinating way how money appeared, what is a bank and finance.
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Evgenia Bliskavka "Children and money" especially useful for little ones.
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Katerina Demina "Children and money. How to cultivate a reasonable attitude to finance» will help parents decide whether to give pocket expenses, how much money to give and dispel parental delusions on the topic of finance.
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