The main mission of parents is to educate their children to become happy, loving and responsible adults, do you agree?
Within this context, unfortunately one subject is still relegated to the background: financial education.
There is a myth that talking about money with children can make them ambitious and selfish. However, if you want a promising future for your little ones, it is essential that this topic be addressed from the earliest years of life.
Teaching your child some good practices related to money management can be fundamental for him to become a financially responsible adult, avoiding many family problems and ensuring a more harmonious future.
So, we’ve separated some tips to help you financially educate your children.
1) Don’t just give the children money and expect them to learn on their own how to deal with financial matters
If children observe the money “showing up” whenever they want or need it, it will be difficult to teach them later. Talk to them in a simple way about everything they can do with the money, and explain the importance of saving.
2) Do not associate allowance with household responsibilities or weekly chores
Most parents want their children to understand that in the real world they are only paid when they work. But in homes this is not the case: parents are not paid for their domestic chores.
Families should be built on mutual obligations and solidarity, not just paid work.
Moreover, when children are paid for their chores, they do not fully experience what it is to be a family member, a member of the team. It is important to teach them that all family members have responsibilities to the group.
3) Impose rules
Be very clear about what they’re going to pay with their own money. You can stipulate that your teenage children pay for the ‘entertainment’ they consume, such as movies, shows, etc.
They can also use the money to go out with friends or buy any clothes and accessories they want.
For younger children, you can start teaching and stipulate that they can use the money to buy an ice cream or a new toy, for example.
In addition, you can also create a list of prohibited items if you’re worried about the ‘direction’ money can take.
4) Let them make mistakes (and feel the consequences)
Children need to learn how to handle money, but they also need to face all the mistakes or victories they see along with allowance and lack of proper management.
So, if your daughter uses all her money with colored pens or accessories and then needs money to go out with friends, use the opportunity to give a lesson on the need to save and plan spending.
5) Give options to earn extra money
It is important that your children learn to look for opportunities to earn money beyond their basic tasks. If they have a video game and want to exchange it for another, how about teaching them how to sell, for example, using the Internet?
In this way, they can use the money earned in the acquisition of new toys and learn the art of negotiation, so present and useful in adult life,
To give tomorrow’s adults a solid understanding of their potential to make money, it is important to give today’s kids the opportunity to be entrepreneurial.
The allowance is not the only way to present financial education to your children. But it is a good place to start the discussions and experiences that will lead to financial responsibility when they reach adulthood, don’t you think?
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