Sometimes talking to kids about money can be really complicated because they don’t really understand how you can earn money and how important it really is to not spend everything in one go. But believe us, the more you try to show them the importance of money, the best it will be in the future.
It is indicated for many people that parents start talking about money, how does it work and how you can actually spend it wisely with children just in the beginning of their childhood.
And there are a lot of little things that you can do when they are very little or in an age where they finally start understanding more of the world to teach them the importance.
What is the importance of financial education for children?
During all of your life and every single person’s life, money is going to be a big part of it. It’s going to be the reasons of your failures, of your victories, and even of your hopes and dreams.
Well, at least most of them. So talking about a financial education with your children is essential so that they can have a healthy relationship with it. And you can teach them a lot of things with teaching them about money.
Responsibility
For a child, it is very easy for them to not give value to the things that they have, since they still don’t have the capacity to understand it. But in the first years of their life, if you start slowly but surely telling them about how they can earn things, it’s going to teach them a sense of responsibility from an early age.
Gratefulness
Teaching them about money is going to teach them to be more grateful and understand more how hard it is to earn. They will understand how working is going to give them better benefits and rewards, so they will also understand that if they work more, they can earn more.
It’s easier from the beginning
Talking with children is very complicated, but teaching them from an early age is essential because it’s when they are most prone to learning. If you try to teach them when they are already a teenager, it’s going to be way harder for them to grasp the concept of money and how to spend wisely.
Stronger bonds
Having the talk about financial things with your child is going to help them understand not only their life but you as a person too. And as a parent, it is important that you are able to become vulnerable to your children. That way they can form a stronger bond with you and everyone will win.
How to talk about financial education with children?
Now that you already know what are the benefits of actually teaching them that, it’s time for you to understand how you can start talking with them. Because you can’t just start from out of nowhere, you have to slowly build up.
Explain money
It’s useless teaching something if they don’t really know what the meaning of it is. So you must start with the basics like what is money. You can start in a very direct way.
You tell them that they have a certain amount to spend on the market today, and you teach them about the price of stuff. If they want a certain thing, they will have to buy only one. But if they want two things, they must buy 2 cheaper things.
That way they will slowly understand the difference between cheap and expensive, meaning that later in their lives they will still understand how something that is cheaper can be as good as something that is expensive.
The origin of money
Small children have no idea where money comes from, and that is completely normal. They still haven’t grasped the concept of work and society itself, so if you slowly teach them how you earn the money and how hard it is to actually give them that small amount of money, they might start failing it more.
It’s common that you might think that money doesn’t have an end, which means that they will not be as valued. By taking them about where it comes from, you will teach them how you can actually save them and that it is used for important things in their house.
Choices are hard
One of the main things that you’re going to find about a child talking about money is how they will have to make choices. And if choices at your age are hard, then for a young child is going to be even harder. Which is why teaching them since they are small is important.
As you said above, you can give them a small amount of money every time you go to the market and let them make their own choices. If they want more things, they’ll have to buy something cheaper, while if they want more, fewer things but something that they really want, they can buy one of them.
Get them a Piggy Bank
A Piggy Bank is a great way to start actually saving money, and it is also a very fun way. You can build up the moment on where they can finally break the Piggy Bank and get all the money inside.
You can choose something that is completely seen through so they can see the money, or something that is not so that they can build that expectation. And never forget to reward them if they are able to save money. Praised them and even give them a little tip if they are able to reach their goal.
Start financial education for children today
Teaching our children to be financial educated can be a really hard thing, and it is an obstacle that you must go through. But in the end it’s going to be the most rewarding thing ever. Which is why we are so prone to tell you that teaching them is important. Let’s hope that with these tips, it’s easier.
