The lack of a knowledge base concerning financial literacy leads adults into difficult life circumstances. Often it is because of ignorance that we create problems for ourselves and then look for ways out of difficult situations. In order for your child, as an adult, to manage money correctly and as usefully as possible for himself, it is necessary to teach him financial literacy from childhood. Let’s talk about the features of learning together.
At what age should parents start and what to do?
The first steps in teaching financial literacy can be done from the age of 4-5. The child can understand a basic understanding of work and its payment, they explain what money is and why they are needed. At this age, you can not only show bills, but also demonstrate how many toys you can buy for a certain amount.
It is also important to convey to the child that money can be fake. This can be told in a playful way, for example with the help of games! Play “shop” or “cashier”. For the game, it is better to use not real money, but toy money, similar to real ones. So that the kid differentiates the understanding of resources. During the game, do not forget to change roles. Did the kid do the shopping? Let him go behind the counter. Explain what change is, sort out the denominations of bills and coins.
Knowledge for primary school
Here comes the age when the child already has a basic idea of resources, but has not yet grown up to the realization of the meaning of gold dealer. Going to the first grade, the child should already be able to make purchases. You should definitely tell him about the change, payment by card or cash, change.
These are the basics of financial literacy that will definitely come in handy at school. In order for the process of getting to know the world of finance to be as pleasant as possible, you can start a piggy bank for a child. Let the child choose the piggy bank he likes and put there the money that is given to him or what remains after school lunches.
Well, in order for the kid to learn how to build connections between purchases and money, make a wish list. So the child’s savings will have a purpose.
A little later, you can tell the kid about the cash receipt, read it together. Go shopping, look at products and prices, and think together why the same thing costs differently. Allow me to pay for a supermarket purchase under control.
High school skills
Your child is almost ready for adulthood, but even here you should not neglect attention. In the last grades of school, there comes a time when you need to open the first bank card and put an amount on it for a month. This is a new chapter in the study of a teen’s financial literacy. It is important to convey to the teenager that he or she must dispose of the money received for a certain period, which means plan his or her spending. If your daughter or son does not listen to you and irrationally disposes of money, penalties in the form of deprivation of pocket funds should follow.
Teaching children is not an easy task… However, remember that your efforts form the education of a person, a ready-for-life human. Thanks to you he or she will make fewer mistakes, and will be a happier person who lives a calm and comfortable life!