Methods and tips on how to teach a child financial literacy

The science of money is crucial for an adult. However, the fact that a competent attitude to material values ​​should be laid down from a young age when a person is most trained and able to perceive new knowledge in huge quantities is often forgotten. Parents need to instill in their children the right attitude to money before school. Indeed, according to Irina Permyakova, a psychologist, psychodramatologist, the development of financial literacy will not only help the child avoid many problems, but also save the time and nerves of adults. In this regard, we decided to list several rules on how to teach a child financial literacy.

What does it mean to be financially literate

Contrary to popular belief, the science of money is not only about the ability to earn money, save it, and distribute it. Financial literacy is, first of all, the ability to assess the current market situation and make the right decisions after the analysis. Obtaining such a skill is immediately impossible, the beginning of the path of its formation goes back to childhood. According to Ekaterina Safonova, a psychologist at the “I-Parent” portal, financial literacy is a very important aspect of education, as any person, regardless of age, is faced with monetary issues every day.

The concept is multifaceted. As part of the development of financial literacy, children should study important aspects of monetary science and find out:

• Methods of saving;
• On the correct formulation of material goals and their achievement;
• On a profitable investment of money or how to make the investment work for yourself;
• How the financial market and its main institution, the bank, work;
• On budgeting and the distribution of income between needs;
• On cost control using various techniques, including modern programs;
• How to make money and save it.
At the same time, building training based on the methodology of compulsory comprehension of sciences is not worth it. This is also indicated by psychologist Ella Ekvtimishvili: “The child needs to be trained in a responsible attitude to money and managing family finances, but not to overdo it so as not to cause inappropriate fear”.

Financial literacy must be inculcated in a different way. Galina Utkina, vice president, director of the banking products management department of Renaissance Credit, speaks about him: “As for the form of“ education, “for very young children this, of course, should be a game, but middle-aged and older students can already learn from real money. Games and tasks can be varied. A child can save up his pocket money to buy something serious. Or, on the contrary, parents buy a new set-top box for their child, and then, as a “percentage for a loan issued,” they allow a limited amount of time to play it for a certain period. In any case, it is important to form an understanding among children that money is not an end in itself, but just a tool to achieve the goals set. ”.

Reference point: when to start training

The child must begin to comprehend the science of money before school. The excuses of the parents, such as “he is still small” or “she still does not understand anything” are not applicable here: children at the age of two years are already able to adequately perceive the world around them and evaluate it. Of course, you cannot turn a seasoned financier from a preschooler. However, to clarify the very concept of money and convey to the offspring their value is quite realistic, especially if you apply the game technique.

At school, the child is already able to learn how to rationally distribute cash spending. By analyzing which purchases are important and which are an excess, you can refuse. In addition, at this time, children can already be accustomed to independent money making. This is also evidenced by Zamir Shukhov, CEO of Global Venture Alliance: “Children can perform some additional tasks or work from parents or close relatives in order to earn a little extra money. This instills a certain discipline and understanding of the value of money. Children understand that in order for money to appear, it is necessary to perform some work, to fulfill some task ”.

Moreover, the topic of money should not act as a taboo. The child should engage in a discussion of the family budget and be aware: funds are limited, so you need to spend them wisely.

Steps to financial literacy

To achieve awareness of the value of money, parents must adhere to certain rules when raising a child:

• Tell where the money comes from, conveying the value of labor to children;
“Together with the kids, to evaluate the value of goods, building a gradation of purchases on the principle” the most important thing now, the rest can be postponed “;

• A child of school age must have a certain amount for pocket expenses and spend it on her own. Only with funds can you learn to dispose of them;

• Children must learn to be economical. If the money issued by parents runs out quickly, there is no need to regret the child. It is necessary to clarify that you will have to do without shopping for some time. Next time, the child will think about the need to purchase this or that thing;

• Stimulate children to earn money, explain that labor is a way to get money. In this case, you can not “pay” the assessment or household duties of the child. It is better to find a different way of earning, in extreme cases, to encourage initiative in housework. That is, to pay for what the child was not supposed to do, but did as he wished..

Parents who want to teach children the basics of financial science need to remember: money should not act as a means of manipulation, it should not be encouraged or punished for actions of a certain nature.

Only instilling the necessary skills at a young age contributes to the formation of a correct idea of ​​material wealth and ways to dispose of them. Only teaching children can grow literate adults. In addition, according to the director of the Russian International School, Irina Makagon: “There are really many opportunities to improve financial literacy and the main task of parents and teachers is to interest and captivate children so that they have a desire to understand this important topic further”.

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