The way a person handles money as an adult is laid in childhood. Even the future financial situation depends on how much your parents instilled the right attitude towards money. Believe me, it’s necessary to teach children how to handle money, so that later it will be easier for them to manage their family budget on their own.
An example of parents - the basis of children's financial literacy
It has already been proven that if adults in the family did not know how to distribute money and constantly experienced difficulties with them, then their children will face the same problems in the future. Urgently change your spending and earnings policies if you don't want to grow future poor. The point is not even the inability to earn a lot, but our inability to distribute the budget.
Now is the age of expensive toys. Electronic gadgets cost a lot, and children constantly demand them. Do not rush silently to fulfill the request of your children to buy a new tablet or laptop. Explain that it costs a lot of money, let the children understand that they will not appear with you simply by the wave of a magic wand. Begin from an early age to explain all this to them, because then it will be very difficult to change their thinking.
Introduce children to money from the age of 2-5 years
This is not about the ability to count money and distribute expenses. Just explain to the child what money is all about, what it is for. Tell us that nothing can be obtained just so that everything has a price. When shopping with your child, show him clearly what and how much it costs. Say what is “expensive” to you and why.
Tell the children about your work, that you go there to make money. Explain that you cannot earn all the money in the world right away, that the amount of your salary is just that, and you cannot change it. My child, for example, for a long time could not understand why I can’t simply “take more money from work” or simply “take them all out of the ATM”. It is clear that at two years old the baby will not understand this, but you still need to explain that the very concept of the concept of money is postponed.
Piggy bank is the best financial simulator
From the age of three, you can already begin to educate your child at a reasonable cost of money. Get some piggy banks - funny piglets or other animals - and define your roles for them. For example, one piggy bank - for the most emergency cases, "for salvation", the second - for ordinary expenses, the third - for a dream. Believe me, it is very important that the child himself distributes how much money to put aside. Be sure to help him decide on his dream, a treasured purchase, on which he will save. This is an important part of education, a necessary condition for the development of financial literacy of the child.
It is clear that the money in the piggy bank themselves will not appear. Encourage your child in small amounts for housework or more challenging tasks. In each family, the amount of incentives is determined based on their capabilities, but it must be. The child should get used to the idea that good work is paid - this is normal practice in today's realities.
Teach your children how to manage their expenses from the age of 6
Experts have calculated that the basic financial skills and habits are formed in a child under 7 years old. If you do not lay the "foundation" of money management by this age, then it will be much more difficult to start. In many countries, children from the age of 6 already have their own bank account, which they can manage with the help of their parents. We already have children's bank cards, and this is a really good idea.
At this age, you can already discuss with your child his weekly "salary" - the amount of pocket expenses.Determine what exactly and what amounts you are willing to pay. It may seem strange to some, but it’s a reasonable civilized approach. In our time, it is impossible to ignore the issue of money, it is better to take it as a given. Yes, you pay your child for help and good behavior, but it’s better than just gifting him with toys that you don’t know what they deserve.
Child Money Making System
My son from about 9 years old began to ask to give him the opportunity to earn. He asked: “What should I do to get more money?” We determined the front of work for him and agreed in advance how much it would cost. But there was a condition - to finish the job. For example, to collect rotten apples in the garden all without a trace. The child must understand that in order to receive a certain amount he will have to try.
Children should develop a clear system for making money. Completed the work - received payment for it. The more difficult the work, the more money you will receive, but the responsibility for its implementation is higher. Honestly, this is the most difficult point. When a child gets down to business, I want to reward him, even if he did not manage. This is not true, but it’s difficult to fight yourself. The danger is that the child may get used to the idea that he will be paid anyway, even if he does not finish the job or does it poorly. This must not be allowed.
Possibility of expensive purchases
At the age of 14-16 years, children dream of expensive purchases, like a new computer or scooter. Even a modern “sophisticated” bicycle stands today almost like a car. It is impossible for a child to simply get all this, even if you have such an opportunity. At this age, a teenager is quite capable of earning at least a large part of the purchase himself.
Write down how much money you need to buy. Divide the amount into parts and determine how much money the child will have to save for his dream. Let a separate piggy bank and an exercise book be opened. You will be surprised how in a short time you can collect quite a considerable amount if you manage money properly.
Where does the child earn extra money?
Help the child decide which area he would be interested in working with, what he could handle. Realistically evaluate the capabilities of the child, and do not just follow his desire. For example, a neighbor boy works in an enterprise for packing parts in boxes. He is well paid, but the work is physically difficult. If your child has health problems, do not start with something that he obviously will not cope with. Of course, wages are attractive, this is a temptation, but the risk of getting seriously ill is not worth it.
From the age of 14 in our country you can already officially earn. There are construction teams and just separate vacancies for adolescents. Farmers often recruit children for seasonal work in the field, private entrepreneurs often take teenagers 14-16 years old to trade kvass, ice cream and anything else. For a couple of seasons, the child is able to accumulate a considerable amount. The main thing is that he knows how to distribute his income and not spend on nothing ..
Preparing for the thought of paid education
By the age of 17, a teenager should already have a basic amount for training. Well, if he goes to the budget “without problems”, although even then he will not do without expenses. If a future student wants to enroll in a paid profession, then he must understand that this is an expensive "pleasure". Prepare your child for the idea that he will also have to earn money to study in the “cool” specialty with you.
In many countries, money for education is saved almost immediately after the birth of a child. In recent years, this practice exists with us. Of course, the child himself will not be able to save up such money, but he must understand that such amounts are very significant. Let him also participate in the replenishment of the family budget to pay for future education.
Times are changing, what was previously considered unacceptable, today is the norm.Previously, we did not need to delve so deeply into monetary matters. Inflation was zero, it was much easier to save money, wages were more decent, and expenses were not so large. Today we have to live by the new rules. Children need to be taught money management as early as possible so that they do not experience difficulties in the future. Financial literacy is the most important moment in raising children in our difficult time, the only way to grow successful people who go through life confidently and easily.