From an early age, the little ones are able to realize that the much desired toy, the new clothes, the trip on vacation and even the snack at school depend on a scarce resource, such as money. Therefore, gradually inserting financial education into children’s lives will be an important contribution to a more financially balanced future for your child. However, parents need not be imposing, as it is possible to deal with the subject in a subtle and natural way.
How children’s financial education works
Well, at first, it is important to explain that children’s financial education is about teaching finances in childhood. The purpose of this type of education is to introduce, instruct and shape the relationship that children have with money. In this way, they learn the value of money, the basic principles of financial organization, how to differentiate wants from needs and much more.
Children’s financial education is based on some fundamental pillars for people’s relationship and behavior with money. Among the several important lessons that she aims to pass on to the children, the main one is that the little ones really learn about the value that money has. In this way, as soon as children begin to understand numbers, it is already possible to apply financial education , introducing the concept of values as well as contact with coins and bills.
There are several methods that can be used to teach financial literacy to children. The educational allowance, for example, is one of them. The objective is to show the importance that money has for children.
Know the importance of children’s financial education
Teaching children how to handle money, even if it’s just instilling basic notions, is the first step for them to be able to manage their own finances more wisely in the future. An early start in this learning will help your children to earn, save and spend wisely, aiming at their financial independence.
The role of parents is not to be eternal providers, but to teach the way for their children to walk with their own legs and enjoy the pleasure that money can provide. Despite not being a mandatory subject in official education, some private schools have already understood the importance of children’s financial education. Therefore, they are including the subject in the curriculum.
Thus, among other subjects, the school teaches how to manage a budget, control expenses and save for the future. Financial education expert Álvaro Modernell draws attention to the fact that handling money well leads to fewer financial problems and less stress. The result of this means a better quality of life for your children when they become adults.
Learn about the benefits of financial education for children
From the first years of life, when the child already begins to know the numbers, he learns to count and ask for items, at this stage he will be able to learn the first steps of finance. Including, the sooner this education is started, the better the results of the advantages that we will discuss below.
Responsibility and self-control
In the beginning, your child may spend all the money, even in a way that you think is wrong. However, as difficult as it is to see the money go so easily in his hands, try not to interfere the first few times. After all, this practice will help the child to be responsible for making the money profitable .
In addition, parents need to be firm, not give more than agreed and not skip payment dates. In this way, the child learns to have self-control and develops the awareness that he will be without money for a while if he spends everything he has or more than he should. In this sense, children learn from an early age to manage their resources.
organization and planning
When the child has parental encouragement, such as a monthly or weekly amount or a reward for important achievements (reading books and good grades, for example, he starts to have notions to create his own financial planning . This can also happen with children ) . children who only gain some value on commemorative dates.
The child develops the ability to organize his money and plan to avoid unnecessary expenses, as well as divide the amounts to use in the school canteen, for example, and make a reservation to buy a toy or new clothes.
independence and autonomy
When dealing with money from an early age, children grow up more aware of the resources they need to achieve something. Therefore, they learn to make decisions in the present as well as plan for the future. This stimulates self-knowledge, facilitating autonomy to make their own decisions.
As an adult, these skills will be well trained and will result in a person who is more independent and secure in their choices.