Saying what John does not find out, John will not be able to, furthermore applies to personal finances. If we like children to be able to manage their own finances in the future, we can begin education in this area from an early age. Because of this, our Jas, since Jan, will be able to use equipment such as loans, credits, cost savings and investments freely. Learn how to teach children how to handle money?
Is really a teenager or student carelessly managing finances? Spends your whole budget in a few days? He does not remember to pay back the mortgage or neglects the problem associated with timely repayment of pay day loans? Does not save? The reason is usually the same. Lack of financial training. If we cannot count on college in this regard, it is worth having matters into our own fingers. Today, a teenager should not just be able to count, but also understand what a loan, loan, deposit or even investment is. But where to begin? How to teach children ways to manage money?
It is worth allocating kids their own budget from an early age. To start with, it can even be totally symbolic. If a preschooler gets at least PLN 20 per month, he will have the opportunity to understand methods to manage finances. With a little creativeness on the part of parents, the young child can quickly grasp the possibilities not only a reasonable spending associated with cash in the store but also conserving and… borrowing creates. Let’s take a not be afraid to bring in the child to all monetary procedures, such as saving, setting up a down payment, taking and granting financing.
Learning to handle money a few years can start with all the agreement that part of the issues he buys will be borrowed from his pocket cash. A toddler who includes everything he wants in to the basket in the store and does not observe that parents pay for it, will not be familiar with restrictions imposed on all of us by the budget and costs.
We can prepare with him e. gary the gadget guy. that he buys sweets intended for his pocket money. Oftentimes, the benefits of such an agreement exceed learning the basics of spending budget management: children… stop eating rolled oats. Why? Not because they are scanty, but in a short time they begin to find the possibility of shifting expenses among categories of purchases. Even if children spends all his cash on sweets in one time, we shouldn’t bother your pet.
This very first lesson will probably lead to several reflection the next month. And when not in the second, after that probably in the third or even fourth “budget period”. Once the child starts spending wallet money more carefully, all of us already have the first success: our own child understood that just before each purchase it is really worth thinking about it a little.
Thanks to the introduction of wallet money, the child also receives another, priceless competence: the opportunity to compare the price with the worth that the product has with regard to him. At the beginning, in the stated example, the toddler will start to consider whether for twenty PLN it is better to buy a kilo of candies or ten bars. What is more profitable? Would be the candies worth losing all their pocket money?
In the next stage, we are able to make the child realize exactly what saving and borrowing can be. If he has, for example , the selected toy, we can prepare with him that if this individual pays half for it through his pocket money, we are going to add the rest to your pet. This will be the first “targeted subsidy” in his life combined with the technology of saving.
When such a first deal is completed, we can extend learning how to include loans. Colleagues curently have such a toy, and the child wants to have it currently, here and now? He can obtain a loan, e. g. within the amount of a pocket cash, but this will mean that he can give us back 120% of his monthly spending budget. What will he choose? Will be the desire to use the toy immediately or a lower cost when delaying the prize?
The scope of kid’s financial education is limited just by the creativity and understanding of parents. We can easily bring in a little older children into the planet of investment or the utilization of credit and loans regarding profitable transactions.
There are many online games and plays on the market that will help children learn economic management. The most popular game is most likely Monopoly and many games along with similar rules. Versions designed for younger children with simplified guidelines have already been available on plaster. Monopoly is primarily about studying entrepreneurship, but also budget administration. The simplest fun that shows you how to spend money wisely will be the traditional way to shop. Because of it, children can not just learn to count, but also obtain skills in determining buy priorities and comparing costs.
It is also really worth taking advantage of the growing selection of games available online. The Nationwide Bank of Poland provides interesting offers – on the site you can find, among others, the online games “My company” and “From a roll to a company” prepared by specialists from the Financial institution, which are training for entrepreneurship plus financial management. In the game “My company” children get familiar with others with concepts for example timely repayment of financial loans, regular bills and client orders.
For older kids, you can enter budget preparing by creating a plan plus spending schedule. Simple claims showing pocket money distribute over time and deadlines with regard to spending will help your child learn budget management in a few several weeks.
All of the over games or educational actions do not have to be associated with decreasing spending on children’s needs. It is very important teach them to accept obligation for even small amounts, that allows them to learn both the benefits of independent financial decision-making as well as the consequences of recklessness. The particular child’s financial education is designed to teach him not only the way to save wisely but also the right way to borrow wisely.
It is very important that money schooling is not limited to learning how to depend. In the future, the child will use different instruments, such as credit, down payment or loan. Appropriate schooling allows you to show your child the advantages of timely settlement of responsibilities as well as the opportunities offered by handling accumulated capital obtained via credit. Similarly, the child need to learn about the benefits of regular preserving and its benefits.