How to teach a child to manage money?
Many mothers prefer to go shopping without children, so as not to provoke tantrums on the part of the child who regularly demands to buy something in the store. The topic “children’s money” has a special place in the upbringing of the younger generation and is very important. All the foundations of financial literacy laid by parents in childhood, as a rule, in the future life of a person determine his financial well-being and success.
What is not recommended
When you go to the store with your son or daughter, there is a high probability that when they see a variety of bright colors, they will demand to buy it all. If the child starts to get hysterical and cry, many parents try to persuade him, calm him down, however, the baby does not hear you and begins to roar out loud. You try to remember the advice of psychologists on how to talk about this situation with a small person, but nothing helps. As a result, losing patience, parents buy what the baby requires. Mom or dad is sure that they are doing something good, but in the future they will have a lot of problems, because they will not learn to understand why they can’t get something when they want it. He, while small, will expect from his parents, then, when he grows up, from society gifts, praise, gratitude, while doing nothing himself.
The opposite option is when in the situation described above, parents do not allow anything, do not buy anything, and do not explain their refusals in any way. This situation also carries a negative impact on the child’s future, as it forms a lot of complexes. The kid with age begins to think that he is bad, somehow does not behave like that, since he is always denied everything. In adulthood, a negative life scenario begins to be established.
In this situation, a third scenario is also possible, when you sometimes buy and sometimes do not buy what the baby asks for, while also not explaining anything. In this case, the child cannot understand why yesterday it was possible, but today it is no longer possible. As a rule, the adult himself does not always understand this. As a result, the baby begins to be torn apart by contradictions, the parents themselves are nervous, this form of education is not effective.
How to teach your child to value and manage money
The topic of “Money for children” is not so difficult if you use a certain strategy, which is almost no different from the financial management system in the adult world.
The basic rule for an adult is to clearly set the size of purchases, their quality, and the amount that you are willing to spend, for example, in a month. If you keep a family budget, you need to create a separate section for the child, write down all expenses there:
- kindergarten or school;
- sports and entertainment;
- office supplies, etc.
In this category, there should be expenses that can not be refused, and irregular expenses, that is, your baby’s” wishlist”. In the last paragraph, you need to clearly indicate the amount of the budget and explain to your child what he can expect and in what quantity.
You should set a clear rule for yourself – go shopping only with a list of the most necessary things. Try to discuss with your children in advance what exactly they want before you enter the store. If you are asked to buy at least something, ask to decide on the choice, otherwise you will have another tantrum in the supermarket.
When buying something for children, you need to take into account their wishes, you should not choose purchases from the series that you can afford. Hearing the wishes of your child is also a manifestation of love and care for him.
If you have agreed in advance what you will buy, and in the supermarket your baby starts asking for something else, stand firm on your own, even if he is on the verge of hysteria, do not pay attention. In such a situation, you can allow him to support the toy he likes in his hands, even walk around the store with it, but you need to explain that you agreed, and your plans did not include buying this thing, so you should put it back before leaving.
In such situations, a lot depends on how confident you behave and how well you can insist on your own. If you work out this algorithm of actions and teach your child to use it, they will soon learn to control their emotions and desires, and there will be no more scandals in stores.
A story about money for children
It is very important to talk to children about money, explain where it comes from, and the sooner you start doing this, the better. This will allow them to start learning financial literacy at an early age, and then plan their budget correctly, make any financial decisions on their own, learn to save money, and value their time and resources.
To begin with, the desired toy can become a financial goal, and when he buys it with his own accumulated funds, he will understand how to move towards his goal.
In addition, financial literacy will help your growing child recognize scammers. It is recommended to have a conversation with them in advance about the existing methods of fraud, teach them how to act in a particular situation, how to communicate with money. It is important not to miss even the smallest details. If your child learns to act carefully and carefully in various financial situations as early as possible in childhood, this will help him protect himself from serious problems and losses in the future.
You should not raise a child if you are financially illiterate yourself. Start with yourself, kids learn by example, adults. First, understand your own financial habits, learn how to plan a budget, take into account all expenses and incomes, then the little person, looking at you, will also learn.
Pocket money and children
Now it is very popular to give children money for pocket expenses. This practice can help an adult tell their own child what money is, the definition for children can be selected depending on their age. However, it is necessary to take into account some nuances in this case, so that your money does not harm the baby.
Parents should learn that when giving out money, they should not tell them what to do with it, how to spend it. Give them the opportunity to learn everything for themselves. Let the child learn from his own experience when he does not have enough money, and decide for himself how much and when he needs to save in order to buy the right thing.
No psychologist will give you specific recommendations about the age when you can give pocket money. In each case, everything is individual. Parents themselves should understand whether their child is ready for their money, taking into account the possibilities of the family budget, living conditions, etc. As a rule, first-graders are already ready to start their own wallet, which you will regularly replenish. And how children will handle money and what to buy with it is up to them.
How much money to give to a child so as not to harm him is a question that concerns many parents. You can give so much that the amount can cover basic expenses, such as transportation and lunch at school, and there is still a little left. This may provoke the appearance of a desire to save money or start looking for opportunities to earn money in order to purchase what you want. In each family, the amount will be different, all individually.
The main idea of pocket money is to reduce the item of expenses for children’s “wishlist” in your budget. It is very important at the moment when you start giving your child pocket money, to explain that from this day on you buy him only the most necessary things, and what he wants, he will buy himself. Your child should understand that he is already old enough, so he can pay for his own desires, and you no longer spend money on them.
As for how often to give money, everything is also individual. The ideal option is twice a month, just as you are given a salary. If the child spends all his savings earlier, you should not give him more, he should understand that there is a specific amount of money and be able to distribute it in such a way that there is enough for everything. Naturally, everything will not be perfect right away, but over time the baby will understand the rules of this “game”.
In most cases, when a child receives their own money for the first time, they spend everything at once. And then for two weeks he can’t buy anything and his parents don’t buy it. In this situation, they gain important experience that will help them manage their own budget in the future.
Every parent needs to understand that pocket money is not a way to correct behavior, it is not money for grades in school. They are necessary to teach your child how to handle finances. You can not increase the amount of pocket money for good behavior or study, or deprive this privilege altogether for mistakes. The child’s behavior cannot be controlled in this way.
How can I explain to my child what money is?
It is necessary to introduce a person to money at an early age, it is better to do it with the help of a game. Kids can be shown toy money pictures, then real ones and explain the difference. Tell us about the existing signs of authentic banknotes, show them watermarks, etc.
A great way to talk about money, its purpose and opportunities is the game “Monopoly”. You can play with the whole family in the evenings and introduce your child to the world of finance in a playful way.
A very important point is to explain that money does not grow on a tree, it is not issued by an ATM. Tell us who you work for and where, explain what he does at his job, and tell us that they give you money for it.
In addition, in a conversation about money, explain to your child exactly what you can buy with money and how much. You can play in the store to convey to your child that things, products and toys are not obtained just like that, you need to pay a specific amount of money for everything.
For younger students, you can choose games more difficult, for example, to organize a gathering on vacation. Make a list of things that you will have to buy for your vacation, determine the cost, etc.
You can also play in a real store by making a list of the necessary products. You can think together about what is best to buy and how not to spend too much at the same time.
Encourage savings cravings
As a rule, every child always has more desires than means. Help the child turn all his “wishlist” into a specific goal, teach him to make a choice in favor of something more important for him. You can explain that if you don’t spend money every day on a chocolate bar or ice cream, then at the end of the month you can buy a toy that he has long wanted.
The mistake of most parents is that they buy their children a gift before they themselves have time to want it. Thus, the child will not learn to set financial goals for himself, why, if everything has already been bought for him?
Give your son or daughter a real piggy bank, it will help you learn how to save for what you really want.
When your child has saved up for the desired dream, give him the opportunity to buy it himself. They will always remember the feeling that they were able to save up on their own, achieved their goal, and paid for it themselves.
You can already entrust a student with more serious purchases, so make a list and send it to the store. Teach them how to compare product prices, and tell them how to save money, but not at the expense of quality. To begin with, you can make purchases together, and then completely entrust this to your child.
Regularly remind your child that money itself has no value, otherwise there is a chance to grow up a miser. Money is what you can buy with it. At the same time, constantly tell your children about money in the sense that you can use it not only for yourself. Explain that you can use money to help someone who needs it. For example, to help homeless animals, send a certain amount to charity, etc. Regularly remind us that you do good deeds selflessly.
How to explain to your child that they have the right to make mistakes
Your son or your daughter is a different person, they don’t have to think and behave like you. Your child’s views may be radically different from yours, so be prepared to discuss your differences, especially with regard to financial issues. First, ask them what they think, and then give them your opinion.
Give them the opportunity to learn something from their own mistakes. It is not necessary, for example,to reprimand the baby for spending his money on trifles, which he saved up for a long-desired toy. In this situation, it is worth calculating together how much he will now have to save up to buy a dream, help him draw the right conclusions from the situation.
It is better to let children get acquainted with useless expenses in their childhood, so that in future adult life they can properly plan their budget.
About money for children without negativity
You should not fill a child’s head with such expressions as” wealth is bad”,” to earn money, you need to work hard”, etc.The attitudes laid down in childhood can later play a bad service. You can create the opposite effect by teaching your child that the rich are cheaters, crooks, and hucksters. They can make sure that cheating is a quick way to get money.
Talk carefully about other people’s success, don’t blame them or, on the contrary, praise them. Your son or daughter should not be under the impression that you can become rich if you have some specific characteristics or traits. It is better to emphasize that success and wealth can be achieved if you study well and find your favorite business in the future.
Remember that children should only talk about money in a positive way. You can not complain about loans and debts or that the salary is not enough for anything. This can cause the baby to develop financial anxiety. In the future of his adult life, this may lead to the fact that he will agree to any, even unloved work, so as not to be left without means of subsistence.
Tell your children any truth about money
If your child asks questions about finances, even if they are inconvenient for you, answer them truthfully. But children tend to be talkative. And if you answer the question about the amount of your salary, tomorrow it may become a topic for discussion in kindergarten or at school.
In this case, you can not directly name the amount, try to explain that your salary may vary from month to month, tell us what it depends on. To answer this question, you can say that your salary is enough for your family, for example. If the child still does not understand family budget planning, do not give him exact figures, in any case it will be difficult for him to understand whether it is a lot or not.
Children can compare the items you buy them with those of their classmates and ask questions about why Andrey, for example, has a smartphone and he has a regular phone. How to explain to the child what the economy is in this case is decided by parents. The main thing is not to criticize either classmates or their parents. Also, you should not immediately buy the child what he wants.
If it’s actually time to switch from a regular phone to a smartphone, you can explain that it’s important to choose not the brand, but actually the necessary functions that the teenager will use. Choose a good budget model together. This way, you will teach them to make an informed choice, and not become a victim of advertising.
No matter what uncomfortable question about money for children you are asked, try not to ignore it and answer the truth. You can ask your son or daughter why they are interested. Sometimes the reason may be more important than the question. And the solution to the problem lies in a completely different area.
If there comes a time when your child begins to compare the income and lifestyle of your family with others, do not keep silent or change the topic of conversation. Explain that people have different professions, some of them are in demand in the labor market, and some are not. Salaries for different professions can also be very different, in addition, each family has its own habits and values. Someone buys luxury appliances, and someone buys books.
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