How to teach the child it is correct to handle money?
the Task to teach the child are correct to handle money can seem, at first sight, quite difficult. It is complicated also by the fact that we ( and, respectively, our children ) live in extremely mercantile society - in society where the cult of consumption and a glossy glamour governs.
Since the early childhood we ( and only we ) accustom our children to live so, as in the TV . This peculiar new deity which is zealously preaching idea to live as all , to look and put on as all , to buy the same, by as all .
On to the zombie-box , included almost round the clock, children with weak, pliable as plasticine mentality see continuous advertizing of new delicacies, entertainments, toys and another shining of prettiness and absolutely fairly consider, as they surely have to have all these things.
Who, if not we?
Unfortunately, nobody informs our children from where money undertakes. Initially the child has no own relation to money. He does not understand what is it - money .
Therefore I consider that parents have to teach children to reasonable use of personal finance and explain to them as far as this knowledge is important.
I will give several simple councils which will help you to teach the child to be more financially competent:
1. Show them the records about the income and expenses
Is very important that parents were realists with the children. It means that at the age of reason it is worth sitting down with the child and it is detailed to show it as money - from where they come move and where they leave .
If it is required, it is possible to represent visually receipts and expenses on paper and in detail to explain how there is a movement of family means.
Let at the child will become a habit to postpone (to preserve ) a certain part of means of those which he receives on birthday or in the form of pocket money.
Explain that this money can be put on the bank account or in a mumps - a moneybox.
3. Open the bank account
When the child is six or seven years old, parents should take away it not only in school, but also in the nearest bank and to open there for it savings ( accumulative ) the account.
Arrange game that the child wanted to fill up the account on a constant basis.
4. Online - banking
Connect a possibility of tracking of the movement of money on the bank account online . It will allow your child to monitor the number of the savings constantly. The Internet is now almost in each family.
5. Most important! Help with formation of the financial purposes
If the child wants to get expensive thing (toy), help it to formulate and write down this purpose accurately. Count together how many money he has to earn ( to save up ) to realize this purpose.
The child can cut out from the magazine, unpack from the Internet or just draw on a bigger sheet of paper what he wants to get. This picture can be hung up over its bed that he did not forget about the dream.
the best way to show to the child as ability to handle money is important is an own example. If the child grows in a family where monetary questions are never discussed, then subsequently he will not know how to it to deal with own financial difficulties.
Remember that children blindly repeat ( copy ) everything that their parents do - they yet not in forces independently to distinguish bad from good .
7. To say about how to spend money
If the child wants to spend the money for something, surely talk to it about it. For example, the child received money from grandmothers and grandfathers for New year and wants their at once to spend. It is worth discussing with it whether really things which it plans to get cost this money.
By the way, psychologists do not recommend to pay children for good school marks or for the various help to parents on the house - got used to similar monetary encouragement (to stimulation ) the child gets used to do to everything only only for money. It is an obvious distortion in its picture of the world.
8. You speak about the future
needs to tell the child With age about how investments on deposit accounts increase. It is interesting to children to learn that the invested money grows over time, and for this purpose it is necessary just to leave them in bank!
Give a well-known example that if every day to invest only 1 dollar under 20 annual interest rates, then in 32 years your child will become the dollar millionaire - if, of course, it is in his and your plans! Read
together!Heartily I recommend
- read together with the child the remarkable book of Baudot Schaefer A dog by name Manya, or the Alphabet of money. Teach
it is Very important to teach since the early childhood the child correctly to handle money and not to give in to advertizing temptations. Parents, and only they, can train the child in bases of financial literacy and personal ( and correct ) an example to show how it is necessary to treat money.
For this purpose parents have to discuss the family budget, the forthcoming purchases together with children, form a habit to handle reasonably money at the child.
Unfortunately, in days of our childhood parents did not devote us in financial affairs of a family at all and all solved. And now there are a lot of such families.
Such example is very indicative here: to receive pocket money, the child of times a week on Sundays makes the financial statement of the income and expenses in a week. There is no report on Sundays - there is no pocket money from parents also.
Teach the child to grant the desires independently. Teach him to be the wizard. Teach him to operate the money!