The habit of saving is acquired from childhood. The little ones learn and develop “executive” and financial skills. We show you how to help them.
Children have fantastic conceptions of money. They believe that the cashiers “give” it and it is only a matter of asking for it, that theirs should not be spent (on the other hand, that of the parents does). Also, they tend to worry a lot when they realize that “it is not enough.” That is why experts in education and personal finance make recommendations to teach children, from preschool, the value of money, the value of things and the ability to discern what is a priority to buy.
How? Playing, including them in simple decisions, allowing you to solve some small domestic problems.
The first lesson for your children will be to give them some money. A small sum that allows purchasing decisions.
- He usually gives the little ones a small allowance whenever they are in the supermarket, for example, to buy something to eat.
- For the elderly (from six years of age) you can give a fixed weekly or monthly sum for their expenses and for savings.
The allowance is a good time to teach them the value and difference of coins and bills. Also, to see the prices of things and decide what they can buy.
For your children, saving will become more important if it has a purpose, a goal: to buy something of value.
It is a good topic to talk and, at the same time, to learn one of the most important executive skills: decision making.
Your child will be tempted to spend money on something different. And he will try to get you involved in the business. It is best to help you reason:
- How much money you have, how much you lack and how long you can reach your goal. You should understand that each decision, each election, implies a waiver.
- You can be flexible and take advantage of opportunities, but keep the goal of saving. Your child must figure out how to continue saving before spending the money.
- You can change your mind, declining the first wish, but you must keep saving.
- You can negotiate a loan, which, of course, you must pay.
Of course, a little party when your child achieves the goal will be a great incentive.
Sharing certain financial information with your children will help them understand how the world works and the value of money. Tell them, for example, that you already paid the house, car, insurance and credit card credit; and show the money you have available for the rest of the month. Together they can make the market list, organizing which products are indispensable and which are not. Also, decide what fun they could do over the weekend.
In the supermarket, your children will be in charge of checking the list and verifying if they carry everything essential. You could allow them to choose something for them “just in case”. You will have to be sure that you can say “no” to all your claims. They will decide between one product or another or pay out of pocket if they don’t want to give up any. The other option will be to wait for next week. As the child grows, financial information can be more accurate. At 15, you can understand how a salary, a credit, what is an invoice and what a proof of payment says.
Surely, your children have some homework, which allows them to learn to live in community. It is even a good idea to define strategies for saving money at home among all family members. You can suggest other extra tasks to earn money. The money earned will be even more valuable than the allowance or gifts (in addition, you will understand without much explanation why you leave so early in the morning).
This money will have a definite objective. Saving for vacations or the purchase of a special toy, of a team or instrument. Instead of asking and asking for your whim, you will have to work it to get the necessary money. Can you imagine the pride you will feel when you achieve it? They will be able to negotiate what type of work, frequency and remuneration.
Agreeing on a saving method – which changes with age – will help your child to value money, dream and enjoy his achievements.