Why it is important to talk about money with children

Why it is important to talk about money with children

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It is highly recommended that adults find times to talk money with the kids since they are small. Thus, they will learn to manage it and save in order to value it.

However, today almost 64% of parents do not discuss financial matters with their children. Furthermore, some children can get the extreme message that money is "bad" and can be corrupt.

In addition, there is a myth about money and the belief that everything to do with the economy is extremely difficult to explain and that only professionals can do it. Therefore, it will be important for parents, through the example, to introduce financial concepts little by little and involve the children by talking to them about money and consumption issues.

You have to start talking about finances to children from when they are very young. Doing so will give us the opportunity to "build" a strong foundation on which all the knowledge that they will acquire throughout their development to manage their money will be based. When talking about money with children, take into account the age of the children.

It will go from the simplest to more complex concepts as time passes and the children grow. The way to do it will be through examples and “practical” activities like this:

- From 3 to 5 years old. Children are still too young to understand financial concepts, but they can learn some things. For example, the child realizes that you cannot have everything you want and that it takes effort to get things done. Thanks to this, the little one will develop patience that will be of great help when saving. It is also a good time for the child to learn to choose.

- From 6 to 9 years old. This stage is good for them to start saving in the piggy bank. In this way, they will be able to manage their money in a practical way and they will realize the value of money without the need for abstract explanations. At these ages, parents can reward the child if they achieve the savings goal that they have set.

- At the age of 11. It will be a good time for the child to have a bank account and begin experimenting with the bank. This will help you understand how the products they offer work. It will be the way to introduce more complex concepts and understand them.

- From 11 to 15 years old. It is time for the parents to make the child understand, look for an activity that helps the child to have their own money outside the home. That is, it is no longer valid just to make the bed or set the table to get a prize.

- Be an example. Children learn by imitation. The way of talking about money with the partner, the consumption habits or the savings that the parents have will be the reference of the child and through the example they will establish their priorities.

- Use games. Play is the best way to learn. Games like Monopoly will be a very useful tool for the child to learn everything related to money.

- Give choice. When the child craves something when he sees it in the store and the parents refuse, that is when the tantrum begins. In this way, the adult prefers that the little one does not accompany him to live the show. Instead of refusing, this opportunity should be used to give the child the opportunity to learn to decide between what is necessary and what is desired. To do this, it will be helpful to make a list of what you are going to buy and dedicate a space to a single whim.

- Money is effort. Money is not invisible and it is not infinite. Children must understand that money is the result of effort.

- Give advice. When they receive the payment, the money is theirs and, therefore, they will be the ones who must decide and manage it. Parents can advise but avoiding value judgments.

You can read more articles similar to Why it is important to talk about money with children, in the On-site Learning category.

Video: What is a Budget? Kid Talk Edition (October 2022).