How to raise financially competent children.
it is just necessary to be engaged in financial literacy of own children in modern market conditions! You should not neglect financial training of the child as it can define his future. And if parents do not take it seriously, the fruits should be reaped not only to it, but also of Parents it is impossible to wave away from the questions of the child connected, anyway, with money at all. A grief to those parents who drive in to the children since small years that not in money happiness. At many education comes to an end with the phrase: “Money on trees does not grow“ or “Without effort will not extend also a small fish from a pond“. Financial education implies not just talk, but also real actions. Children are not capable to understand all from talk. They need to experience all in operation, otherwise the result will not be.
If parents do not explain to the child in time what is money and why they need to be earned and saved, then he will have about this subject own opinion. After four years of the child it is, usually, very difficult to reconstruct to other relation to family finance. There is more.
Before taking away the children in school, parents teach them to consider and to write. So why parents before releasing the child in adulthood, do not teach them to financial bases?
Before starting financial education of the child, parents have to agree among themselves and develop the general principles of education of the child. Here the most important principle among the others is open discussion with the child of a marital financial position. If one of parents has any negative experiences connected with money (for example, avarice, a tranzhirstvo), then after a while the child will have just the same emotions.
from this follows a conclusion that depends only on education of parents whether the child a cheapskate will be, the squanderer or will know what to do with money where it is favorable to enclose them and so on.
the best way to teach the children to handle economically money is to tell them various stories about money. The most important that these stories were based on real life experience of parents or other various relatives (or just familiar) whom the child saw many times here and use, parents, the personal examples to explain to children a financial condition of a family and as to improve it.
will not be unfounded and I will give an example. At visits of shop the child demands to buy it some toy. He cries, beats with legs and it is required to explain lack of money, usually, many moral forces and time. And what it would not be, it is possible to arrive as follows. Take
with the spouse a clean sheet of paper and enter in it in figure your total income. Then subtract obligatory expenses of your family from this sum. These are, for example, payments for utilities, a monthly contribution a pocredita, return of debts etc. The sum which parents will be able to spend this month turns out. But there is more to come! In the presence of the child, from the received sum, parents have to subtract expenditure for food, purchase of clothes, expenses on mobile communication, public transport or the car etc. On each of points of an expense of the family budget, parents have to explain to the child of the reason of such expenditure. Why and why this or that expense of family finance is necessary. And on a sheet of paper there was a smaller sum. Explain to the child that on part of this remained sum of money to mozhnokupit a toy, and another should be postponed for increase in the capital of a family. That the family had a financial resource on which she will live in a case of loss of work as one of spouses, an illness or something else.
On the basis of these calculations, parents will be able to explain to the child why they are not able to buy him this or that toy. Sincerely I consider that in such a way it is simpler to child to explain.
the Following stage can serve in financial education of the child delivery by parents of pocket money to it. For this purpose discuss the sum of money which you can give him with the spouse. Here, of course, concrete recommendations cannot be given. How many and how often to give. As practice shows, it is possible to use the following. How many to the child of years, so much money it is also necessary to give out to him. For example, the ten-year-old child can give hundred rubles. Twelve-year-old - 150 etc. The main thing here that these payments of pocket money were regular. Then with the child`s growing the sum of pocket money needs to be increased.
In general the child should give money not only for personal needs, but also for trivial expenses on economy. It is necessary to pass to it gradually. In the beginning parents give money before a visit of shop. Give accurate instructions as in what quantity it is necessary to buy. Then over time it is possible to make the child responsible for something on economy. Let`s tell responsible for existence of bread and milk in the house. And if in the house there are no bread and milk, the child has to see it and without excess reminders to fill up food stocks of a family. For this purpose it needs to give the sum, previously having calculated it, necessary for daily purchase of these products for the whole month. Thus, the child learns to handle money and understands all the responsibility to parents.
At the following stage of financial education of the child it is recommended to show it as money works. As it is possible to save up them and to increase greatly. Parents also give to the child pocket money and explain that he can spend all this money for himself fast. But it is possible (and it is necessary) to save a certain part of pocket money, for example, giving to parents on preservation. As option, the child gives them a certain sum, and receives big with percent. Parents in this case act in a rolibanka. From them crystal honesty is required. It is impossible to deceive the child at all and not to return him the money given to you. What it is necessary for? In order that in the future, of course with the parental help, the child could make large purchase. For example, to buy rollers or the bicycle. Or something else, interesting to it, but expensive.
Approximately in such financial plan and spirit I would recommend to raise to parents the children. Once again I say that it is very important for children. For parents too. With 5 - ti years it is possible and it is necessary to raise the children to keep the family budget. That they were formed and grounded in this question, understood family finance.