Teaching financial literacy to children is a fundamental step in preparing them for adulthood.
As school holidays approach, many parents are looking for additional activities for their children. One valuable opportunity that can be explored during this time is to teach financial education. After all, understanding the basic concepts of economics from an early age is essential to providing a solid foundation of knowledge, preparing children for a financially healthy future.
“By learning financial education, children will be able to practice conscious and responsible decision-making regarding money from an early age, developing a deeper understanding of its value. The sooner basic financial concepts, such as distinguishing between needs and wants, can be taught and learned, the better chance future generations will have of managing their finances in an effective and healthy way,” explains Thaíne Clemente, Strategy and Operations executive at Simplicic, fintech of personal credit.
To help parents introduce the topic into their children’s routine, the manager lists five practical tips for the holidays. Watch:
Encourage financial planning
During the holidays, involve your children in the family financial planning process by explaining the importance of setting goals, such as saving for a trip, a toy, or any other goal. Help them create their first action plan, outlining the steps to achieve those goals. Suggesting that they save some of the money they earn to buy something they want, for example, is a great opportunity to demonstrate how to set a specific goal, set deadlines, and track their progress.
Differentiating needs from wants
It is important for your children to understand the difference between needs and wants, helping them to recognize that some things are essential, such as food, shelter, and education, while others are just wants, such as luxury items and entertainment. Explain how to make informed choices about how to spend money, prioritizing what is truly necessary and considering wants within a set budget.
Promote the habit of saving
Encourage your children to save money, whether through a piggy bank or their own bank account, by showing how small savings can add up over time. Explain that saving some of the money they receive can be used to reach future goals, such as buying a special toy, a more expensive game, or anything on their wish list.
Continue the conversation about finances
Promote regular conversations about finances by providing opportunities to ask questions, leading discussions on the topic so your child can practice their knowledge, and even sharing your own experiences to teach by example. Talking openly about money helps children develop a healthy mindset about the topic and make informed financial decisions.
Games and educational activities
Use fun financial education games, apps, and activities to keep kids engaged during the holidays. There are a variety of resources available, such as board games, financial simulation apps, and hands-on activities to teach finance in a fun and interactive way.
“Parents play a key role in developing their children’s financial lives. By incorporating practical advice during the holidays, they provide a stimulating learning environment where children can learn essential skills. Furthermore, financial education is an ongoing process, not a one-off moment. As children grow, it is important to adapt lessons based on their age and ability to understand,” the executive concludes.
Source: Terra
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.
