Teaching children about finance from a young age is how to lay the first brick for their success in the future

Teaching your children about finance from a young age is how to put the first bricks on your child's path to future success. Stay tuned!

Teach your child the importance of priorities

By never saying no to your demands! It sounds strange, but Ritter shares this lesson like this: If the kids want to buy something, instead of saying no with a word NO, let them see that getting a new item is an item. targets need to be achieved.

Example: Parents will buy a bicycle in July. And if during that time, when you want to buy any other expensive toys, you won't have bicycles to go according to your plan. “This will help kids understand the value. of priorities and learn how to choose what's more important for efficient spending later on ”- Ritter shares.

Teach your children to learn trade-offs

The temptation of toys can hardly be avoided by the children and insisted on buying them. And so the plan to buy a bicycle would have to be reversed. Help your children understand that there are costs and trade-offs.

In a famous 1960 study, four-year-olds were given the choice between having two candies if they waited for the researcher to return to the room; Or you can only eat 1 if you can't wait until then. As a result, 90% of babies will eat their delicious candy right away.

Priority in finance is a difficult lesson. But when your child can't get a bike to start the new school year, they will understand that there is a trade-off in short-term needs to achieve long-term goals. Those are the first steps to teaching your child about saving and setting financial investment goals.

Teach children about finance and management

By talking and sharing with your children about how the whole family is spending, but not talking about taxes or utility bills. Instead, tell the kids about how the whole family spends the money.

For example: to save on buying a new house, with a garden for children to play with, parents will stop our family's travel plans this summer, or parents will not buy a new car, the money That's enough for your child to pay for the next school year!

Sharing with your children about how parents think about and consider spending for a certain purpose always values ​​and teaches children a lesson about the parent's sacrifice. A lesson about sharing will help your child understand how valuable parents' investment and top priorities for their children are.

Or by letting them manage their own money: Buying a piggy bank to save money for their own money such as lucky money, bonuses for good and good students in the school year etc. Some time, please help your baby check the amount in the pig. More or less does not matter, it is important to tell your children, the money you have is not enough to buy what you want. And if you want to have enough money, take the time to save or work overtime!

Must work to enjoy

Show your kids that there is a direct connection between a parent's work to maintain a stable life for the whole family, to buy food and pay for services and many other costs. Only then can the children understand why parents have to work and earn money.

Money does not grow on its own from a tree and is consumed by it. The most practical way is not to give your child a daily allowance, but to get him a small part-time job, suitable for his age, near home. Parents can talk to each other to get the kids to come to a neighbor's house and help water plants, weed, mop the house, etc. They will receive a relatively small amount and understand the value of valuable labor

Lessons about investment

Open up a savings account with your piggy bank. It is important to explain to your child the difference between money stored in a piggy bank and deposited in a savings book. Once understood, children will be excited to see their money increase over time and understand the joy of investing effectively financially.

These early childhood finance lessons are a way to lay the first bricks for future financial success. And so, when they grow up, they will know how to use money wisely and responsibly.

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