Financial education for children

Preparing the children in terms of how to cope with the existing economic shocks, as well as how to manage children's money in a fun and effective way, will be a great tool for them in adulthood.

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Today, the economy is very variable at all levels. It seems fair that in homes some notions of economics are taught to children. It is what could be called financial education for children.

If seen from a practical point of view, financial education for children would avoid many problems in the future . Only the necessary tools must be found to impart this knowledge in a fun way so that the child feels motivated with this activity.

In the stage of childhood is when they begin to form habits , therefore, is the most ideal time for them to learn financial economics.

Benefits of financial education for children

Financial education in children helps them lose the fear of money , and also allows them to better plan their savings and small expenses.

As the child saves and perceives the advantages that this action brings, he will be motivated to organize his expenses and plan better.

The role of parents in financial education

The first step is always for the parents, assigning them an allowance, some reward for some work , among others; next to the above said to teach them the habit of saving .

The effort to earn the money must be of the child , as parents have a duty to help, but always leaving the greatest share of responsibility to the infant.

It should be clear about which tasks or activities will be monetarily rewarded. For example, the obligations of the home, having good behavior or school assignments are part of their duties , so they should not be rewarded with prizes of any kind.

You have to give savings the value it deserves . One of the most important functions of financial education for children is to understand what saving really means. You must have a goal, so the motivation to save will be greater.

Financial education for children through a game

One of the most effective methods of teaching is the game . In the case of financial education for children, the game of Monopoly would be the most appropriate.

In this game, the child begins to buy places, saves and reasons about what he needs to win. Plan strategies individually and have fun in the process.

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It is always good to ask the child questions about his actions taken or what he presumes he will do. For example, why do you think it will be okay to buy that house, or save the money to buy something later? Simple questions to help you with future earnings.

The child must always take into account their needs and interests. The game will help you cleverly and responsibly clarify the decisions to be made.

Set goals and meet them

The fact of knowing what the money is going to be spent on is very important. It is essential that the child has a clearer idea of ​​the destination of their savings. The little ones always want toys . You can use this desire as a goal to promote saving.

The most used tool for this saving method is the piggy bank . The child every time he gets money deposits it in said element and when he is full, he manages to realize the desired purchases.

If it is the case that the money saved is not enough to buy what you want, you can talk with the child and complete, the idea with this is that the child feels the support of their parents in order to achieve the proposed goals.

It is really important to observe the child's thrifty behavior and encourage not to lose sight of the goals and objectives proposed. In this way, the child is able to learn to save and make good decisions regarding money.

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In many countries, one of the most important aspects of financial education for children is raising awareness about their expenses and how to manage them; which in the future will be part of your day to day as adults.

It is always good to clarify to the child that everything has a cost, hence the importance of saving. It is easy to instill this idea through small expenses that the infant can and feels safe to assume.

Preparing children to be responsible consumers , teaching them the value of effectively managing their money and forming good habits in them, will help them become adults with excellent financial responsibility.