Financial education for children - What we need to tell them

Most parents are reluctant to discuss money with their children. Society is extremely dynamic, constantly changing. That is why, nowadays, there is a need for financial education for the little ones, which starts right at home. Children only realize how important something is when it is explained to them and they need to understand from an early age how important money management is. Teenagers are very eager to be financially independent.

Helpful tips for getting kids to learn about money management

It doesn't matter if it's something they learn in school or not, financial education starting in the family plays an important role.

Introduce financial aspects into everyday life 

Involve your child in planning and organizing money every day. Here are some suggestions:

• Go shopping with your little one and try to find out from him/her why two similar products have different prices.
• Involve him in paying the bills and explain the amounts if he asks you to.
• Explain how much money you make as a family and how much you spend each month.
• Show him what money means in physical form. Talk to him about banks.

Give him spending money, but calculate the frequency and amount well 

To do this you need to calculate well from the total monthly family money and carefully analyze what are the advantages of offering a spending amount. Thus, the child has money to spend, but above all to manage. The effects are real, and this is seen through the lens of the fact that if he buys a game, he will have to save more to buy a bike. 

Let the child learn by himself 

If the little one wants to spend all the money on one game, let him. This way he will learn the lesson that the money went for what he wanted, but he will have to manage the money differently if he wants other toys or games in the future. 

TIP: If you teach him to put his money in the piggy bank or put the bills in special envelopes, it will become a financial activity he likes.

Discuss the difference between wants and needs 

It is a basic principle that children must learn so that it is clear to them that needs include food, shelter, clothing, health and education. Desires are outside these things. 

Teach them to track their spending 

The habit of saving helps little ones know where their money goes. It is easier to do this through the bank, but it is also possible through the classic method. If you give them spending money every month, have them write down what they spend on each day, and at the end of the week, when they draw the line, they'll have a super experience. Show them what it means to do some math to reach the target amount they want to reach by saving.

Allow him to make mistakes 

An important thing that comes from being given an amount to spend is to also learn from mistakes. It is a very dangerous trap to intervene every time the little ones make a mistake.

Be a role model 

You are a role model for your child and therefore you must have moments of self-reflection regarding the financial behavior you represent. Are you behind on your bills? Are you overspending? Explain to your child why and what you do, and then set the family's financial principles in order. 

All parents want to see their children thrive in adulthood, but they often forget how important it is to learn things in time, especially when it comes to money.