To deal with the financial literacy of their children in modern market conditions is absolutely necessary! Do not neglect financial education of the child, as this may determine his future. And if parents don’t take it seriously, the fruits will be reaped not only him, but them. Parents in no event it is impossible to brush aside issues of the child related, one way or another, with money. Woe to those parents who drive their children from an early age that money can’t buy happiness. Many education ends with the phrase: “Money don’t grow on trees” or “hard work will pull the fish from the pond.” Financial education involves not just talk, but real action. Children are not able to understand all of the conversations. They need to experience all the action, otherwise the result will be.
If parents don’t explain to the child what money is and why they need to earn and save money, then it will be about the subject’s own opinion. After four years baby usually very hard to rebuild to a different attitude to family finances. And yet.
Before taking their children to school, parents teach them to count and write. So why do parents before releasing your child into adulthood, do not teach them financial basics?
Before proceeding to the financial upbringing of the child, the parents must agree among themselves and to develop General principles of child rearing. Here the most important principle among the rest is an open discussion with the child’s family financial situation. If one of the parents have any negative experiences related to money (e.g., greed, squandering), then after a while the child will appear exactly the same emotions.
The conclusion from this is that only on the education of parents depends on whether the child is a meanie, Rangiroa or will know what to do with the money, where to invest and so on.
The best way to teach their children economically to handle money is to tell them different stories about the money. Most importantly, these stories were based on real life experience of parents or other relatives (or friends), which the child had seen many times here and use, parents, their own personal examples to explain to the children the financial condition of the family and how to improve it.
I will not unfounded and lead by example. When grocery shopping, the child demands to buy him some toys. He cries, kicks and so he can explain the lack of money usually takes a lot of moral strength and time. It was not like this, we can proceed as follows.
Take a husband and a blank sheet of paper and write in it the figure of your total income. Then from this sum subtract the mandatory expenses of your family. This, for example, payments for utilities, the monthly payment on the credit, debt, etc. you Get the amount that parents can spend this month. BUT that’s not all! In the presence of a child, of the amount received, parents must deduct expenses for food, clothing, mobile charges, public transport or car, etc. Each of the items of the expenditure of the family budget, parents should explain the reasons for such expenses. Why did they need a certain flow rate of the family’s finances. While on paper there are still smaller amount. Explain to your child that part of that remaining amount of money you can buy a toy and the other should be delayed to increase the capital of the family. To the family was a financial resource that she will live in the event of loss of a spouse, illness or something else.
Based on these calculations, the parents will be able to explain to the child why they are not able to buy him a particular toy. I sincerely believe that the way to explain to the child easier.
The next step in the financial upbringing of the child would be the issuing parents him pocket money. To do this, discuss with your spouse the amount of money you can give him. Here, of course, specific recommendations cannot be given. How much and how often to give. As practice shows, you can use the following. As a child years, as much of his money and should give. For example, a child of ten can give a hundred rubles. Twelve – 150, etc. the Important thing here is that these payments pocket money were regular. Then with the maturity of the child the amount of pocket money should be increased.
Generally the child should not only give money for personal needs, but for small expenses on the farm. Proceed to this step by step process. Initially the parents give the money before going to the store. Give clear instructions on what and in what quantity to buy. Then over time, you can make the child responsible for anything on the farm. Say responsible for the existence of bread and milk in the house. And if in the house there is no bread and milk, the child should see and without further reminders to replenish food stocks family. For this he needs to repay, pre-cut it, we need it for daily purchases these products for a month. Thus, the child learns to handle money and understands its responsibility towards parents.
In the next phase of financial education of the child, it is recommended to show him how money works. How can they accumulate and multiply. Parents give the child pocket money and explain that he can get all the money quickly to spend on yourself. But you can (and should) a certain portion of their pocket money to defer, for example, paying parents for safekeeping. Alternatively, the child gives them a certain amount and receives much interest. The parents in this case act as the Bank. They need fair. It is impossible in any case to deceive the child and not return him given you money. What does it do? So in the future, of course with parental help, the child could make a large purchase. For example, buy videos or Bicycle. Or something else interesting, but expensive.
This financial plan and spirit, I would recommend to educate parents of their children. Once again I say that for children it is very important. For parents too. With 5 years can and should bring up their children to keep the family budget. To in this question were educated and savvy, versed in the finances of the family.