5 financial education tips for children

Financial expert Daniella Rolim explains how to include financial education in children’s daily lives

Working on financial education from childhood is an opportunity that parents offer a gift that will have a great impact on their life in the future: ability to manage your own money.

Financial education is an essential topic in everyone’s life, including children. Teaching them from an early age the importance of money, saving and investing helps create more knowledgeable adults.

Therefore, Daniella Rolim, personal finance and financial education specialist at Flap Capital, has parted ways 5 tips to include financial education in a simple way in the daily life of the little ones. Watch:

Teach your child to save

Set short-term (2 months), medium (6 months) and long-term (1 year) goals so your child can save within that period. “This makes goals more tangible and accessible,” Daniella points out.

Use transparent piggy banks

Use three clear money boxes, one for each purpose. This approach, according to the expert, allows the child to monitor the growth of his money as he saves. “The fun aspect of seeing money accumulate can be very motivating,” he says.

Negotiation practice

It is also important to teach the practice of negotiation from an early age. The professional suggests explaining to the child how buying with cash can save money for more important purchases. This helps you understand the relationship between financial choices and personal goals.

Link savings to consumption

Parents can also involve their children in basic daily family financial matters. “Explain that taking shorter showers helps you save on the electricity bill and that at the end of the month the ‘leftover’ money can be used, for example, to buy something the child wants,” explains Daniella.

Playful and adapted teaching

The professional underlines the need to approach financial education in a playful way and adapted to the child’s age. “Children do not have the same level of reasoning as adults and therefore financial concepts must be explained in an accessible and engaging way,” she concludes.

Source: Terra

Ben

Ben Stock is a lifestyle journalist and author at Gossipify. He writes about topics such as health, wellness, travel, food and home decor. He provides practical advice and inspiration to improve well-being, keeps readers up to date with latest lifestyle news and trends, known for his engaging writing style, in-depth analysis and unique perspectives.