How to teach your child a financial literacy lesson

To be able to correctly manage money is an invaluable skill that not everyone owns. Meanwhile, learning financial literacy is necessary from the pot - it is an acquaintance with the realities of adult life, for which you need to prepare in advance. If a small extortionist grows up in your house who does not know the value of money, you will find help in our article. Explain to your child what money is and where it comes from is not difficult.



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"Site" tell Basics of Financial LiteracyThis is something that young parents should learn and then teach their children. 7 Golden Rules for Parents of Young Children

Lessons from financial literacy

1. Dedicate the child to the family budget
   “You’re about to grow up and find out where dad and mom get their money” is a bad start for financially raising a child. The desire to buy something arises in children before financial awareness, so it’s time to devote a precious child to the intricacies of the family budget! Psychologists are convinced that it is better to do this from the age of 4, when the little ransomware begins to understand many things. Tell your child about the family budget, mandatory monthly expenses, how income is distributed and what parents do with the rest of the money, such as tangerine slices or Lego parts.
   
   
   
   
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2. Respond competently to financial requests
   If you answer every financial request of a child irritatedly and claim that there is no money for it now or it is too expensive, then the child will form an opinion: having desires is not good, and money is the greatest value. To the child’s request to buy something, answer with consent – it is important for a small person to know and understand that his needs are taken into account. Explain that the cost of the toy this month, unfortunately, not included in the budget. Help your child find an alternative that will help to realize the dream: ask for a gift from Santa, save pocket money or find a similar toy, but cheaper. The child must understand why the object of desire cannot be bought at this moment and what are the alternatives.
   
   
   
   
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3. Make conscious purchases.
   Going shopping with your child, explain to your child why you take so many products, why you choose one of the three types of milk, discuss with your child the quality and cost of purchased products, the need to buy them. And also try to pay at the cash register in cash - so the child will understand that money tends to run out, which means they need to earn again.
   
   
   
   
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4. Allocate pocket money every week.
   The first pocket money can appear in the piggy bank of a child as early as 6-7 years. It is important that this amount was albeit insignificant, but was issued regularly or simply, or for some cases that are not included in the daily duties of the child. When finances are handed out chaoticly or parents can take them away at any time, children won't be able to understand. how to manage moneyThey don’t learn financial strategy. Over time, the child will learn to dispose of personal funds, count change in the store, save for a coveted toy - will understand that money disappears and you need to treat them carefully.
   
   
   
   
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5. Explain, playfully.
   Try to introduce your child to the world of money through fun games. Play Monopoly or other games where you need to make money and choose how to use it. In “Buy yourself”, for example, parents give the child the opportunity to make purchases on their own: send him to the store with a small list of products, and wait at the checkout. Come up with general games that will help develop your child’s financial skills.
   
   
   
   
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6. Learn to help others
   The tradition of charity is a wonderful tradition. To teach a little person to empathize and help other people, you can go with him to an orphanage, a nursing home or together transfer things to a family in need (clothes, money, things that the child will do with his own hands). The child will be glad that this is his merit, and will begin to treat money differently.
   
   
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7. Help you make your first money
   The older the child, the more needs he has. Of course, parents are not obliged to realize all the whims of the child, and the child does not benefit from all desires. The best thing you can do is support your child’s desire to earn their first money. Easy work for several hours a day will teach the child to appreciate the money earned, consciously relate to their spending, measure desires and opportunities, and most importantly – to achieve goals.
   
   
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Children are damn smart: they quickly assimilate the main property of money – with them you can become the owner of many desirable things. Timely and competent financial education will get rid of the constant begging for toys and sweets and teach children a healthy attitude to money, help them get on their feet faster and gain material independence.

How do you teach your children how to manage money? Be sure to share your skills and advice with other readers!