The attitude towards money largely determines the financial well-being of a person. And if from childhood you tell a child about the rules of handling finances, then it will be much easier for him to adapt in society and ensure his material well-being. As a rule, already in early adolescence, children should have basic knowledge of money,
Many parents complain that their children do not value money, do not know its true value and ask for unreasonably large sums for daily expenses and for the purchase of expensive toys or gadgets. At the same time, if you ask these parents how often they talk about money and finances with their children, then a positive answer can be heard from a rare person. Meanwhile, without instilling in children a culture of dealing with money, it is very difficult to get them to have the right attitude to finance.
The American Institute of Certified Public Accountants surveyed parents of teenagers about how often they talk with their children about the value of money in life.
- 30% of parents do not talk about money with their children at all;
- 95% of parents prefer to talk to their children about good manners and etiquette, rather than about money;
- 87% consider it more important to talk about proper nutrition;
- 84% will warn children about the dangers of drugs and alcohol;
- 82% will talk about the risks of smoking.
Of course, no sane person would belittle the importance of discussions about morality, good manners, and the harm of drugs. However, in today's world, you can't go far without knowledge of how to handle money. In the end, material well-being is an indicator of a successful person who knows how to respect himself and his needs. Conversely, if a person is not educated in these matters, he will not be able to make rational decisions about his finances. A financially secure person is an independent person capable of achieving their goals. Therefore, talking about money with your children should be given just as much attention as talking about other important topics.
Researchers at the American Institute of Accountants made the following conclusions from their survey:
1. The sooner you start teaching your children the basics of financial literacy, the better. Track when your child begins to express conscious desires related to material costs. This means that the time has come to talk about where the money comes from, how much and what it is spent on. Let the child find out the amount of mandatory spending for the month, for the quarter, for the year, as well as the mandatory monthly spending. This will help him put together a general picture of the financial situation of the family, understand what the family budget is and take part in its discussion.
2. Tell us about bank deposits and accounts, tell us how to use them. You can put part of the money that parents and grandparents give children for their birthday, put aside in a special bank account opened in the name of the child. This will help the child understand that money can not only be spent, but also various operations can be performed with it.
3. Do not think that the child does not understand anything about money. And if you are sure of this, change the situation: use every opportunity to talk about money. Explain how you can buy an apartment or a car, borrow or lend, what investment is. Tell us what happens to the money if you put it on a deposit or buy an expensive toy with it. This will help the child understand the principle of rationality of spending money, and the parents - to learn more about the character of the child.
4. Make conversations about money regular, but don’t make buying money a fetish. Show the children that money is not an end in itself, but an opportunity. Financial independence frees a person from many life problems, if you treat money correctly. Anyone can spend money, but only a few can invest correctly.
5. As always, personal example works best. If parents do not have financial literacy, then children are unlikely to master it. Therefore, learn to understand the terms, concepts and basic ways of investing money, so that this knowledge can then be passed on to children. As a rule, the one who teaches simultaneously learns from his students. By mastering the basics of financial literacy with your children, you yourself will become much better versed in this topic.
