Many parents think that their children are still young and should not let them know too much about finances. However, teaching children about money is a way to ensure that in the future they know how to spend and take care of life. Furthermore, successful money management is the key to ensuring a prosperous life.
When should you teach your children about money?
One of the best times to start teaching your child about money is when they turn 5 years old. This stage helps build solid foundations and basic money concepts. Parents should start teaching their children about the appropriate amount of money they need according to their needs during the day by creating age-appropriate games and teaching activities. Thereby, you can help your child understand the value of money, how to save and make financial decisions.
You should expose your child to money step by step
Once children have basic knowledge about money, you can expand by introducing basic concepts such as coins, paper money and the value of money. You can also teach your child how to calculate and count denominations of money. small.
Once your child really understands what money is, you can start letting them manage a small budget when they start to have some money of their own. For example, savings or pocket money from a part-time job or Help your family become independent and financially conscious. At the same time, you can teach your children the concept of collecting income, saving and investing, giving them a perspective on other financial aspects. Help your child develop smart spending and investing thinking.
Expose your child to money appropriately
The way a 6-year-old child interacts with money will be different from a 10-year-old child's needs and desires when it comes to spending. Parents need to determine their children's daily needs so they can properly teach them about money . Instead of giving your child a financial allowance, you can let your child do a small job like sweeping the floor or wiping the table to earn pocket money.
You also shouldn't stop your child from spending what they want. Only when they make small mistakes with money can they learn from it. As for parents, you should try to do what you say and not give your children mixed messages about money. For example, if you normally buy candy for your child, but today you say candy is too expensive to buy, this will have a negative impact on the process of teaching your child about money .
Spending money on your own and making your own mistakes will help your child learn about spending
The first benefit when children understand the value of money is that they will have the habit of saving money as well as spending smartly, especially children will know that they don't have to get everything they want right away. Parents need to emphasize spending money wisely, cultivating good habits and controlling their lives through spending. When children grow up, the foundations of money will help them know how to manage spending, avoid debt, and appreciate the money they make.
Games help children develop spending management skills
1. Teach children to play Monopoly
Monopoly teaches children about basic financial concepts such as the value of money, how to save and invest. During the game, children will have to make decisions about how to use their money, from buying real estate, to which land to invest in to make a profit. To become the ultimate winner, children will gradually learn how to manage money and make smart financial decisions.
Playing Monopoly is a great way to teach your children about money
Monopoly allows children to experience the huge risk and reward aspects of investing. Children will realize that investing without calculation will lead to a very high risk of bankruptcy, and that saving money is not always better than investing. With a Monopoly chess set , you can teach your children about money , how to evaluate situations and the market.
2. Let your children play at the supermarket
The Supermarket game will help your child clearly understand the face value and value of items. When shopping, there will be many different products. You can lead your child to compare prices and quality of products to give make the final decision
Parents should also note for their children: Expensive products are not always good and should not buy things that exceed their budget. Before going to the supermarket, limit the amount of money your child can spend and encourage them to manage money within the budget they have set.
Teaching children about money is a long process, requiring the guidance of parents as well as the child's ability to understand. The earlier you start teaching your children how to spend, the greater benefits it will bring in the future. You should take advantage of the appropriate times as mentioned above to teach your children about money and help them become successful financial managers.
