June 2, 2023
The age between 3 to 8 years makes the child curious to know what is going on around. Talking about money can be beneficial at this age as their brain can absorb as much information as possible. They can learn and understand the basics of finances easily as their mind will be free from any type of anxiety.
As parents, you cannot deny your responsibilities. They tend to accept things easily that you will tell them. Why your role is significant here? It is because you cannot expect schools to include money matters in the curriculum.
Home-schooling is very crucial to help your child acknowledge the significance of money management. Your child can easily inculcate any habit during this tender age. Make the most out of it.
Filter what all you have so far learnt regarding money. Educate your child on how borrowing at different points of life can help and hurt the finance. To draw their attention, share interesting facts about how they can text for a loan and get money in minutes.
Refrain from dumping too much information at the same time. Try to make your conversation regarding money interesting so that it remains etched in their memory forever. Let them understand the magic of savings in life.
This blog discusses the various ways you can motivate your child to learn different aspects of money and the reasons you must do it.
Is it tough to educate children about vital money lessons?
Your child must have seen you swiping the credit card 10 to 15 times in various shopping centres every month. Accessing money might seem super convenient to them. Therefore, you must take the initiatives to enlighten them on how to earn money to be able to spend on necessities.
This process of imparting financial education to your child is neither hard nor easy. A study highlights how only around 4 out of 10 students gain exposure to finance in school or college. You have to figure out the best way to guide your kids about the money. Given below are some suggestions that you may use as the methods to follow:
1. Indulge them in games to learn about saving
If you want them to learn to save the traditional way, it will not work. You must make the process intriguing for them. Invite them to participate in this game of saving money.
With toddlers, you can arrange small tasks that they must complete to earn a reward such as money. Plan their tasks carefully. It should be something that they cannot complete.
For example, they may ask you to get a pricey toy costing around £ 90. Do not agree to buy it straightaway despite you can afford it. This way, they will not perceive the importance of having that toy.
Give them a target of 10 months to save for this toy. Promise them to give £ 9 every month on completion of a specific task. This tactic will help your child learn savings and patience at the same time. In addition, they will understand how difficult it is to earn and save money.
2. Take them along while purchasing household items
This is one of the best ways to show your child the real world of price comparison. Maybe, they are small and it is not easy for them to note the difference too quickly. However, they will get to see a simple chocolate can have different price tags while having the same taste almost.
Such acute details about money cannot be taught theoretically. A practical intervention is necessary. Besides learning how the pricing differently works for the same product, they will see how you segregate things to bring to your home.
They will gradually understand how you pick a particular item based on your budget and necessity. Most importantly, it will teach how one should not just purchase an item seeing its packaging and advertising.
3. Show the other side of technology
Nowadays, kids are so smart that you do not have to teach them how to handle a mobile phone or a laptop. They kind of learn the skill of accessing these devices since their childhood. The worst part is that these electronic devices grab their attention too fast.
It does not matter if your child is 3 years or 17 years old, 80% of children between this age group consume different types of virtual content. When it is not that easy to detach them from these gadgets, you must introduce them to the positive sides of technology.
Show them different types of applications through which you can send them pocket money virtually. Inform them about the various features of these applications like monitoring their pocket money etc. It also gives them the liberty to use the money for online transactions.
The best thing about these apps is that they allow parental control also. Moreover, some of them have additional tools that encourage money-related habits like saving and budgeting. It means your child can explore some of the crucial aspects concerning money while you can have all the information at your fingertips.
4. Let them do some of the money calculations
Imagine a situation where your child has to go to the departmental store to purchase something. Give them a fixed amount of money preferably cash and tell them the price and the amount they should bring as change. Show them how you did the calculation and allow them to visit the store.
Wait till they return to see if they have got the right amount of change. Do not scold them if they did a mistake in calculating! Remember that it was their first time and they will learn a lesson from this mistake.
At times, the easiest of calculations seem tough when someone is nervous or is rushing due to time shortage. Sit with your child and have a healthy conversation where you must try to point out the mistake and why it happened.
Let them visit the store some other day to purchase a different thing. It will give them the confidence to accept and rectify the mistake. Therefore, having patience is super important in your case also.
Your child cannot learn everything in a day. Try to recall if you have learnt all the basics of finances in a day or two. Learning is a process and refines with age and experience.
Do not be persuasive or else your child will acquire your money mindset! Let them be independent by giving them lessons through experiences.
The bottom line
You can advise them to follow finance-related updates. If your child is at the age of understanding finance articles, let them read and obtain information related to it. Again, it is not a one-day task. With time, reading finance blogs or news will become their habit.
You can even recommend them to follow Florafinance for recent updates about the finance industry. One thing that you must remember is that your child will copy your habits largely.
You must also study and follow finance blogs for your information and to help them inculcate the habit of reading. Your responsibility as a parent is unparallel and you can be the role model in their life.
Try out different self-taught tricks also apart from following the ones already given in this blog. Feel free to share some of your unique ways here by writing to us.
Ellie Brown is a proud resident of the UK and love to be a content writer and editor for the last 9 years. Writing blogs and articles is her passion that one can explore at the top blogging platforms. Ellie holds a key position at Florafinance as the Senior Content Editor and Chief Loan Consultant, leading a team of more than 70 professionals. Ellie Brown covers the major aspects of the UK’s lending industry in her blogs and guides loan seekers who come at Florafinance to apply for a loan. She possesses the Post-Graduate degree in Finance and Investment.