5 Ways To Teach Children How To Use Money Wisely
Have you ever heard a mother say to her child “you don’t know how difficult it is to earn money so you can squander it” ? Indeed, it is a very common phrase, but it is also true that the little one does not know it because he has not had the opportunity to do so. That is why it is so important to teach children how to use money wisely from their earliest childhood.
We cannot judge children, especially when they are very young, because they do not understand concepts such as money , salary , etc. Financial education is usually reserved for adults.
But for a moment let’s do an exercise in empathy. Let’s think that we are that 4 or 5 year old child who wants to explore everything, that anything catches his eye.
That infant, in addition, has had food whenever he wanted, he has had toys, clothes, a house and certain whims. Can we judge him because he wants this new board game or that doll? No, since you have not had the opportunity to understand how money works in the world you live in.
Why is it important for children to learn financial education?
One of the great experts in financial education is Javier Calvente, an entrepreneur and expert in the digital world and domestic finance. That is why we consider your opinion important in this field.
According to Calvente, the importance of financial education in children is key because, as they develop, they discover that they must face new challenges for which they must be prepared.
Without a doubt, knowing how to manage finances is one of the great challenges that parents are going to face. And it is that your future will depend on a good organization, since this way you will know what monetary value your food, health and even free time management have.
Strategies for Teaching Children to Use Money Wisely
That said, let’s see some strategies and tips that we can provide you to teach financial education to children, so that they learn to use money wisely knowing the concept well.
Act as an example to teach how to use money
Remember that children learn a lot from their elders. Therefore, if at an early age they see in you a responsible use of money and a successful adjustment of finances, they will understand that intelligent use is the norm.
Talk to the little one so that he knows why this can be bought, but perhaps something else not because it is very expensive. Explain the need to save, show wrong and correct examples and do not be afraid to explain the reason for your financial activity.
Involve the kids
It is also convenient for children to be involved in family finances from a young age. It is not about managing accounts, but it is about knowing what the various items are dedicated to, for example, for food, for clothes, for books, etc.
In this way, the little ones can be involved in family purchases. When you are at the supermarket, for example, you can assign a small budget for them to buy what they want, so that they have to adjust to the limited money you give them.
Put a pay to teach children how to use money
Many adults, like some children, do not understand the concept of pay . Given that the little one, when he needs something, receives money from his parents, why add a payment? It is simple, to introduce the child to the concept of saving.
The little one will receive weekly or monthly money for their private use. Now, you will have to squeeze it as it suits you without going overboard. This way you will understand concepts such as savings , administration, etc.
New technologies
Games and new technologies will also help children learn savings and financial strategies. There are many elements, from YouTube channels specialized in this matter, to mobile applications that help them learn while having fun.
Show the stages of money
You can establish the stages of the money according to its use, but also according to its obtaining. That is, a first would be the way to win it. Then the savings phase would come. Finally, that of spending or investment. All this creating a story similar to that of the financial pyramid adapted to the smallest of the house.
We hope that these 5 ways to teach children how to use money wisely will help you teach your child to understand the value of money, its importance and the need to manage it correctly.
