In fact, it is common to hear many people complaining that they would like to learn about personal finance at school. Thus, they would have viewed the relationship with money differently before reaching indebtedness .
In order to prevent new generations from experiencing similar difficulties in the way they use money, many parents have been concerned with teaching their children financial education from an early age.
It is a wise decision since, the sooner the child learns how to deal with money, the greater the chances of him investing and not delay in building his own assets .
Next, we will bring you some tips that you can exercise on a daily basis with your child, to teach financial education. It is important to involve the whole family, so that children can learn in practice as soon as possible how to use the money in the best possible way .
Start with the allowance
Many parents have difficulty giving their children an allowance because they prefer to satisfy their tastes when necessary.
However, the allowance is an important way to make the child learn in practice how to use the money .
As a financial education, however, this measure needs to follow some rules.
Talk to your child to understand what they would actually use the money for. Once this is done, involve the family to stipulate an allowance amount . You can set the recurrence or even automate a monthly, biweekly or weekly transfer through your own bank. But, if you prefer to give the cash in hand, the allowance also works.
Teach your child to save
From the moment you set your child’s allowance, have a serious conversation about the importance of having savings . If necessary, show how you usually manage the family budget .
If the allowance is given in cash, reinforce the importance of saving money to buy something important for him. In that case, it is important to know what your child really values. He may be interested in buying a new video game or changing the tablet, but how about provoking him to think a little more about the future, like an exchange or that expensive game course, for example.
If your child is mature enough to use banking services, you can urge him to save some of the money in savings and, little by little, teach about the possible applications he can make.
It is important that the child is motivated by a personal desire. In this case, it is worth understanding what he really wants to do and what he likes, so as not to waste most of the money on superfluous items.
Hold periodic conversations with your children about financial education. In addition to using real-life examples, you can show what you can do and build when you’re in the habit of saving .
If you feel that your child is spending too much on things that do not add much to their life, invest time to teach them about spending control . A good way to do this is to involve him in controlling family expenses . Show what you usually spend and talk openly about how you make your investments.
When the child begins to understand in practice the importance of using money intelligently, he ends up learning together.
If the spreadsheet is too complicated for the child to control expenses, make use of the good old notebook.
Give the child autonomy to use the money
A very good tip for dealing with the way children can use money: make the difference between consumption and leisure very clear .
This is because children often associate the fact of ‘leaving home’ with something related to consumption. Observe the way it relates to money and give small tips to encourage the best way to spend , so that it does not waste.
For this, it is essential that you restrain yourself from wanting to buy everything she wants, without spending your own money. That is, no gifts out of season or buy more than you should just because you are on the side of the child. After all, the child needs to know how to exercise autonomy to learn little by little about financial education .
So be patient and always willing to explain the importance of separating leisure consumption, for example.
Make the difference between wanting and needing clear
Little by little children learn what they really want and what they need. For that, it is necessary that the child matures its relationship with money .
If the allowance ends, for example, be firm and make it clear that only within the agreed time will she have money in hand again.
If you feel that your child has been spending on small things because he thinks he ‘needs’, have a serious conversation about it. A good tip is to make it clear that, once she spends on something superfluous (for example, a video game), she stops buying something else that she really needs (like a school lunch).
Show children’s financial education options
Did you know that there are several websites that help the little ones to use money intelligently?
Sites like Turma da Bolsa, Banco da Criança and Bate-Bola Financeiro explain the economic vocabulary in a simple and interactive way, so that they start to get used to terms like “ savings ”, “debt”, “change”, “expense”, “ cost “,” expensive “, etc.
Show how you are investing in your child
You care about your child and want him to have a bright future. So, show the applications you are making and the gains you have made over the years.
You can guarantee your child’s education or even that he can make an exchange after reaching the age of majority by purchasing a consortium of services , for example. Thus, he can enjoy when he is older something that will really make a difference in his life.
Many parents also have the desire to give their children a car or property after they come of age. Through the consortium, you can make this type of investment and surprise them.