Financial literacy for children

Many people are faced with the situation of buying a house when the houses are the most expensive, selling foreign currency at a low price when the currency is falling, or buying more when the price is rising, not being able to save enough, and things if you are not at home. Want to buy.

However, financial literacy can protect against losses. In addition, futures, BES, stock markets and many similar investment instruments can prevent devaluation against inflation where your money awaits.

Of course, these are always the protection of your earnings. Based on the principle that “money is earned while spending”, it is possible to control spending through a number of methods such as balancing our spending, meeting the needs of the shopping process instead of enjoying it, spending cash and finding out. The most suitable products and sellers compare prices before buying.

All of these can be assessed within the concept of financial literacy. Well, do we want our children to be able to do what we can’t?

Developing children’s financial literacy from childhood can be a golden bracelet for them. How is that?

  • First, we must let them know that we have a limited source of income and that we spend with our savings.
  • Observing your work and the work of other people helps them to understand how to make money. Making money is not an easy thing.
  • The more money the paperwork in childhood, the more the value of money begins to settle among children over time. As values ​​begin to stabilize, children’s awareness of the amount we earn each day allows them to moderate their spending.
  • The difference between wanting to get and getting what you need should be taught at every opportunity.
  • Doing price comparison or brand / product comparison processes that we apply when shopping with our kids helps to establish this habit from an early age. For this, you can contribute to their comparison by asking about the market price.
  • Giving them regular pocket money from school age creates a good practice environment that they can manage personally. However, it is very important that pocket money is paid regularly and with a certain limit, when not requested.
  • From infancy, you can teach your child to use one-third of the cost according to the amount of pocket money, one-third to save in Piggy Bank, and one-third in charitable activities. Thus, they will begin to learn that not all pocket money should be spent, the importance of investment and their social duty.
  • You can also encourage him to save by adding a certain amount to each of his money and setting aside for charity.
  • Honestly, the hardest part is choosing a brand to buy or what they want to see among their friends. It is difficult for a child to handle this situation, which even adults can rarely handle. Still, do your best. At least, don’t buy in season, follow seasonal discounts, try to find more beautiful and suitable together.
  • You can trade with games like Monopoly, which can be played by age group, in which money is used, or with store games where they can sell their toys at home.

Here are some of the ones I found to be interesting: However, the concept of debt and adherence to debt should also be taught during adolescence. It is the family’s responsibility to teach others the basics of debt, the importance of insurance and the need for taxes.

Another issue is the budget. Kids can be more motivated to save by calculating the budget needed to buy their goals. Make it a habit to budget them. “How many months do you have to save to get it?” Encourage budgeting with questions like this. If you can, keep an income-expenditure book.

Another important issue is investment. The importance of investment needs to be explained because money is not an unresolved and fixed value, it can increase with investment and its purchasing power weakens at the rate of inflation.

With less risky tools like funds, you can both apply and see, and your children can feel that regular savings each month can result in increased savings. Also, you will realize the seriousness of the problem and the concept of “property” by opening a deposit account and investment account in the name of your child in the banks. You can get these funds together through the bank and track them together for 3 months. You will also feel the importance of banking and banking by going to the bank with them, entering the internet branch and transacting.

The most important thing is to be able to see the difference between those who can manage their money and those who cannot. The desire for a prosperous future is related to financial literacy, money management as well as work.

Awareness about budgeting, income and expenditure balance, savings, investment, borrowing, aid, knowledge and fulfillment of their financial obligations will make a huge difference in their lives. Rest assured, financial literacy will be a golden bracelet and a great legacy for your children.

Leave a Comment