And do you know why a lot of people have so much difficulty dealing with money? Because they learned late (or didn’t even get to know) the importance of organizing personal finances. “ So, should we teach financial education to children? “, you might ask. The answer is a resounding ‘Yes, absolutely ‘. 👍
In this post, we show you why and the most important: how to make the kids practice finance lessons, with explanations that speak the language of the little ones. Check out!
How important is financial education for children
Did you know that 66.3% of consumers in our country are in debt? This is what the Consumer Indebtedness and Default Survey (Peic) shows us. One of the main responsible for this number is the credit card – which, for many children, is something magical, able to buy everything that is within their reach. 💳
This highlights two major advantages of financial education for children:
- the earlier in life a person discovers how to save and take care of the money earned, the less chance they have of becoming a number in this statistic;
- the children learn how credit card purchases work in instalments and the need for payment in the following months.
And we go even further: these teachings also involve issues such as controlling desires and valuing achievements. Adults with these skills manage to get along better in society and are not so frustrated with some common difficulties. So, nothing better than learning all this from an early age, would you agree?
How to introduce financial education to children in everyday life
Now let’s get to the interesting part. If you have no idea how to start this complicated subject even for adults, the first step is to change that thinking. It’s all about opening your mind and focusing on planning. Each person must know what money goes in and out of the budget, and this can be done with spreadsheets or expense lists. 📝
So, the first step is to put together such a list with the children. It is worth writing down any type of expense, from the most important ones –– such as shopping at the supermarket –– to simple ones, such as a candy or a snack. See more simple tips to put into practice and do well in this control of finances!
Use the piggy bank to break at the end of the year
Teach children the importance of planning purchases. Pooling money to reach a goal teaches children valuable lessons: the importance of savings and how to get what you want can take time and patience. A piggy bank is a good tool for this, especially those that only release the value when breaking it. 🔨
The famous little pig can be an arrangement between you and the gang: it will only be broken on the last day of the year, for example. Over the months, you have to put every spare coin in the safe. After all, it won’t fill up on its own, right?
Working with allowance or allowance
You can also consider an allowance or allowance for the child, even if for a few reais. The intention is to give her the autonomy to make her own purchases. It is also important to teach that, if not well spent, the money runs out before the next receipt. So, if you have something unforeseen, you will have no way out –– except to ask for help (which in the adult world means a loan).
Here, there is only one caution: it is not very interesting to relate allowances to studies. Learning should be a child’s commitment to their own future, and motivation should come from this, combined?
Invent games with real situations
Encourage the child in different ways for a more complete financial education. Just as schools today use game elements for teaching, such as gamification, you can bet on this concept at home.
It can be very simple. Propose that the family has received an important mission from a distant galaxy and needs to pass “phases” to win the game. It’s worth what the imagination tells you! Some interesting examples are listed below:
- save a certain amount until the end of the month, by cutting out unnecessary expenses ;
- turn off lights when no one is in the room to save on the energy bill;
- turn off the shower to save water while soaping or shampooing;
- spend a whole week eating meals prepared at home, in order to avoid delivery costs.
These games teach about short and medium-term goals. Explain that there are also long-term ones—usually those that require more time and effort. The concepts are closely related to financial education for children of any age.
Your son or nephew may not become a great entrepreneur, but a good dose of entrepreneurship doesn’t hurt anyone. Especially for a future professional career, this vision is very important. It combines with self-knowledge and makes people seek to overcome challenges, showing their strengths. 👊
The entrepreneurial vision also activates leadership, which is even more relevant in the market. If your child wants to become a great leader or an innovator in the future, nurturing this competency early on will only do her career good.
Build a list with the main doubts
Between us, even we have doubts about the best ways to handle money, right? Not to mention the various terms that circulate in the universe of finance. Therefore, it is worth having a list with the most frequently asked questions. Whenever the child feels the need, he or she can consult the material. This is also great for triggering self-motivation.