One of the skills that many people would like to master is the ability to competently manage money. And it’s better to learn from childhood. Therefore, if your family has children, then tell them about the rules for handling money as early as possible. And then your kids will be responsible for finances, which, of course, will be useful to them in the future.
Explain to your child what the family budget is.
Children have an early desire to buy things, so you can start talking about the family budget when the baby is 4 years old. At this age, he already understands many things well. This is a great time to tell him how to make money.
Explain what family finance is and show what fixed expenses you have and what you do with the rest of the money. To make the child understand this better, use orange slices or cubes. This will bring the baby closer to understanding the responsibilities of adulthood and what he should prepare for in advance.
Control your reaction to your child’s financial needs
If you react with anger to every request of a child or constantly say that you cannot buy him such an expensive thing, then the baby may have the impression that you always do not have enough money. Worse, he might think that having desires is wrong.
Accept his request first: it is important that the child knows that his needs are taken into account. Explain that the expenses for this month have already been distributed and his desire, unfortunately, was not included in the budget. Try to help your child find options to get what he wants. Let him ask for this thing as a Christmas present or find something similar, but cheaper. You can also sell things that he does not use, and spend the money you received on what you want. The main thing is to explain why you can’t buy now and what is the alternative to this.
Shop with your baby
Often children accompany us when we go shopping, so it’s useful to use these points as an opportunity to educate them financially. And while your child still does not buy products on his own, now he can at least choose.
Explain why you are buying a particular quantity of products, why you are choosing a particular product, and not one that looks like it. Discuss the quality and value of each item, as well as the convenience of the purchase. Try to pay cash at the checkout, so that it’s easier for the child to understand that the money is running out and that you will have to earn it again to meet your needs.
Allocate money to children every week
Pocket money should appear in a child aged 5 to 7 years. Let it be the minimum amount that you can give weekly. It is important that he can manage this money in accordance with his own wishes. Remember, you can only advise this, but the baby must make the final decision himself. Teach your child to take care of money. For this, for example, you can give him a piggy bank or a small wallet.
Never give him money for fulfilling duties. For example, household chores, study should not be paid. If you give money for it, then only worsen your attitude to finances and negate their desire for knowledge.
The first experiments with money will not be entirely successful, but gradually the baby will learn how to manage funds and will save up for an important purchase.He realizes that money can disappear, and will treat them more consciously.
Play
The game is the main way that children learn the world. And with it, you can introduce the kid to the money. We offer several game options:
- "Find the cheapest product." Ask your child to find a product at a better price or compete who will do it faster. Similar skills will be useful at any age.
- "Buy it yourself." Give your child the opportunity to buy something on their own. You can send it with a small list and wait for it in the queue at the checkout. This is also a great way to protect yourself from unnecessary spending in the store.
- Budget planning. Discuss with older children what the monthly money will be spent on. Draw a table on the sheet and indicate the categories of expenses: food, clothing, health, home, entertainment. Let the baby determine how much each category will be allocated. At the end of the week, calculate all expenses. Thus, the family will be able to clearly see what the most money was spent on, and what less.
You can also play Monopoly or other games with the whole family, where participants must earn money and choose how to manage it.
Begin the tradition of charity
It's nice to include charity as part of your family culture. Thus, the child will learn to empathize and help others. You can give both handicrafts and some items of clothing, household items and money. With the whole family, you can go to an orphanage, asylum or donate things to needy people. The child will be happy that he has done a good deed and will start to treat money differently.
Give your child a chance to earn their first money.
The older the child becomes, the higher the cost. Of course, parents are not required to allow him everything, but it will not be useful for the baby. And if he really wants some thing, then encourage his desire to make money on his own. This will teach the baby to value money, be more knowledgeable about purchases, measure their desires and opportunities and achieve their goals. The best option is to work part-time. This does not stop him from studying and doing his homework.
