How to teach financial education to children in an easy way?

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Teaching financial education to children is the first step towards creating an adult who knows how to organize their finances.

Did you know that money is also a child's thing? 

I say this because some people still believe that money is not a topic to discuss with minors. However, this is a mistake!

The only way for adults to be at peace with their finances, aware of their consumption and who know how to value money is when they are taught how to relate to it from childhood.

If you have small children, don't worry, there's still time to teach them this concept! 

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Read the text and find out how to do it in an easy way. See the text index below:

What is financial education?

These are practices that help us understand and know the concepts and financial products. They can change the way we think and relate to money.

With financial education we learn to be more aware and to always evaluate the risks and opportunities involved in financial operations.

With this methodology you can learn to:

Recently, Brazilians have started to have more contact with different financial services and products, even some that were unfamiliar to them.

This increase in purchasing power, due to the ease of access to these products and services, makes clear the importance of financial education.

The main purpose of this method is to raise people's awareness regarding their individual and family decisions related to their finances.

The best way to avoid a lack of consumer awareness is through financial education from childhood.

Check out some below Benefits of teaching financial literacy to children.

What are the benefits of teaching financial education to children?

When financial education is introduced into the routine from childhood, the possibilities of defining financial habits healthy lives that will extend into adulthood are much greater.

In this way, children learn from an early age to organize their finances and plan their expenses.

She will certainly be an adult with more control over her earnings and will always adopt good consumption habits.

Furthermore, another benefit of introducing financial education is that the child learns to assess risks from an early age before using their money and getting involved in financial transactions.

Likewise, she learns to negotiate more easily and identify opportunities that will bring future benefits.

When this topic is addressed and applied in childhood, parents are certainly providing the necessary tools for their child to grow up and have a successful and balanced financial life.

When we use the term “success”, we are not referring to having wealth, but the opportunity to enjoy a more peaceful life, with finances under control, financial balance and a better quality of life.

When is the right time to start teaching financial education to children?

There is no right or wrong time. Ideally, it should be done as soon as possible, however, the concept should be naturally incorporated into the child's routine.

It is up to parents to be able to identify opportunities, in addition, the first lessons will be learned by seeing how parents relate to money.

It is worth noting that the level of understanding varies according to each child and age group, therefore, parents need to respect their children's limitations.

Try to introduce this concept gradually and increase the level as your child develops.

Don't forget: you must not impose financial education in your children's lives. The idea is to help them create a positive connection with money and their finances.

Therefore, it is essential that the family has a light, fun and as organic approach as possible.

How important is it to talk about money with children?

If you are over 30, you probably grew up thinking that having money is wrong, a sin or even that it does not bring happiness.

There are many taboos and paradigms surrounding money, however, the secret lies in the way you see and relate to it.

That's why it's so important to talk about money with your child, in the family or school environment, for example, so that a healthy relationship with this item can be built.

The topic should be addressed from an early age, always respecting the limitations and curiosities of each age group.

It is essential that the subject is developed naturally and that they have the freedom to express their doubts, ask questions and question.

Parents, in turn, need to be prepared to answer these questions in the best way possible and thus create a positive relationship between the child and money.

It may seem like a difficult task, however, we are sure that you want your child to have a different relationship with money, or you want them to be able to learn things that you did not learn at their age.

So to help you teach financial education to your children in an easy and simple way, follow the tips below.

How to teach financial education to children?

How to teach financial education to children? Image: Pixabay

It is very important that the adults around the child are involved in this process.

It would be perfect if the topic was addressed or emphasized in all the environments she usually frequents, for example, school, religious temple, etc.

However, this will not always be possible, so parents will need the help of all family members to put the tips into practice.

1. Be an example

You know that saying: “Do as I say, not as I do”? Cross it out of the equation. You need to be an example and show, in practice, the best way to relate to money.

Children look up to and look up to the adults closest to them. Even if it’s not intentional, you or another family member may be serving as a role model for your child.

However, you can use this admiration to help them build their relationship with money, even if these lessons are taught indirectly, that is, without the child knowing or realizing that you are trying to teach them something.

You can be sure that only your example and that of other family members will be very important in the learning process.

For example, if parents spend without thinking, do not save and present out of control In relation to money and consumption, children will have the same habits.

Besides that, if the family tries to teach the child something different from what they practice, he or she will certainly become confused, as he or she will realize that there is a contradiction.

Now, if you are having trouble controlling your income, we can help you. Here on our blog you can find lots of content with tips on finances.

It is worth noting that, if you happen to have a family financial plan or budget, it is important to involve the child in the meetings. If you do not, why not start to have control over the family finances?

Read also👉Learn how to make a family budget and have a better quality of life.

2. Set an allowance

Allowance is a great tool to help parents teach financial education to children.

In fact, of all the actions, this is one of the most efficient. This is because the child will have the opportunity to have their own money and make their own decisions.

However, parents need to follow each step to provide the necessary guidance.

You don't need to give your child a minimum wage, don't worry! The amount should be decided by you, according to the family's financial situation.

If this is something new to you, you need to start rethinking the possibility of giving your children an allowance. 

It will certainly bring many benefits and help build your relationship with money and educate you financially.

👉If you don't know where to start or how to do it, read our text: How to give pocket money to children?

In it you will find tips to help you start giving your children pocket money correctly. Be sure to read it after you finish reading this text.

3. Teach your child to save

One of the missions of this concept is to teach us the importance of saving money, in fact, this is a habit that not only can, but should be learned from an early age.

An adult who has not been taught to save since childhood will find it very difficult to do so in the future.

The most traditional and common tool for teaching children to save is the piggy bank. Although it is very useful, you can take advantage and teach your child to invest to see their money grow.

One way to do this is to take the money he saves and store it in a digital account where the money earns interest and with investments, for example, Inter Kids.

Take the opportunity to also read👉How to get a credit card for those under 18?

Additionally, you can opt for the more traditional way of teaching your children about investments. For example, you can offer income to the piggy bank if they reach certain goals.

By multiplying the value when he saves, as if it were interest income, you are making him familiar with investments from an early age.

This will certainly come in handy in the future.

4. Use books and other tools to make the process more fun

To make the process more fun and easy to understand, you can give your children books that cover the topic of financial education.

Among the options, we can recommend:

All of the themes mentioned here are available for purchase on Amazon. However, there are other great themes that you might like more.

Books can teach great lessons through engaging stories and activities. They also encourage the habit of reading. If this practice is done as a family, it can strengthen family bonds.

Banco Next has a digital account for children: Next Joy. In the app, children find a learning path.

In these short videos, they learn through the stories of characters who already know great lessons about financial education.

This account also offers many benefits for children, for example, a prepaid card and discounts in game, toy and school supply stores.

You can even use the account to save your child's money. One of the requirements to apply for this account is to already be a Next customer.

👉Learn more about how to open a Next digital account ➔

Once your account is approved, look for the “Next Joy” option in the menu. Open your child’s account and download the app to start using it. teach financial education to children with the help of Next.

5. Involve children in family financial decisions

A great way to get kids interested in finances is to involve them in some important family financial decisions.

There are many ways to do this and it can vary depending on the family routine and situation. However, there are situations that are normal for most children and can serve as a tool.

For example, when making a common purchase in the family routine, such as going to the supermarket, set a quantity with the child and ask for their help to pick up the products and add them up.

Involve them in product choices, always making it clear how much they have to spend.

It is still possible to involve them in other decisions related to family finances: gift purchases, planning, donation amounts, etc.

In addition to learning, the child will feel important and will learn from an early age to plan and make the best decisions.

Conclusion

During the process to introduce financial education In children's routine, you may encounter some challenges, but don't give up, as it is very important for your child to have a successful future.

If you encounter any difficulties, seek professional help. Also, keep following the news on our blog.

Here you will find information about various products and services, and you will also receive help to organize your finances and always make the best decisions.

Access the Consulta Cred blog and take a tour of our news. Don't forget to tell us how the process went for teach financial education to children from your home.

 

By: Nara updated ago 2 years back