Learning money can be a fun, interesting, and interesting path through which you make mistakes, learn new things, how to save, spend rationally, invest, and earn money. Money is one of the most important secondary things in the world, and knowing how to handle money is a matter of skill as well as habit.
It is very important to teach children from a young age all aspects of financial literacy, so that they acquire knowledge, create habits and acquire commendable skills when it comes to finances. One of the best ways to teach children all aspects of finance is by giving them a kids bank card.
From an early age, children absorb all knowledge like sponges and often imitate their parents and older brothers and sisters in everything. Studies have shown that children whose parents teach them finance and all its branches from a young age, from saving, spending, earning, investing, and donating money, then those children have a debt-free future and grow up to be financially stable adults. (1)
Introduction to Money
Before any financial lessons, you must explain to the children the origin and method of earning money. Money can only be earned through hard work and effort. Money is not in abundance, nor is it in abnormal amounts at magical machines (ATMs), nor does money grow on trees.
The difference between wants and needs
It is of crucial importance that children know the difference between needs and wants. By needs, we mean mandatory and necessary expenses monthly for one family. By this, we mean bill payments, grocery purchases, rent, mortgage, fuel, clothes, shoes, and expenses that arise during the month. Parents first have to pay the basic expenses and then if they have money left over, that money goes to savings and a small part can sometimes be spent to fulfill the children’s wishes.
- Provide them with a credit card for children
One of the best options for learning financial literacy is certainly a credit card for children. This allows your children to learn and create a savings plan, a spending plan, the ability to earn money, donate money to the needy, and invest part of the money in stocks. All this is completed with activity tables intended for children of all ages, so that household activities and jobs, extracurricular and teaching activities can be monitored. Children earn extra money by doing tasks from the tables or increasing their pocket money, all in agreement with their parents. The goal is to teach children all kinds of finances and bring them closer and adapt them to use. Many parents who decided on this option did not regret it, what’s more, this application made it much easier for them to teach their children all kinds of finance.
- Encourage them to earn their allowance
You can encourage certain children to study well or do household chores if they will receive a certain amount of money. Therefore, many decide on the option of paying out additional money if the children complete all the assigned tasks within the given time limit. They have to save the money they earn in their account and leave part of the money immediately in the savings plan. Every time we get money, we should set aside a small part for savings.
- Let them start working part-time
For most teenagers, the money their parents give them is not enough to cover all their expenses, so they decide to look for a part-time job. Teenagers can do all kinds of jobs from mowing the lawn, taking care of the garden, working in a coffee shop, working in a store, babysitting, looking after pets, and many others. Children must choose what they want to do and what motivates them.
- Investment is very important
If you are thinking about the future, then it is crucial to teach your children everything about stocks, the market, and how investing works. Children’s credit cards have created an innovation where children can choose between 200 different companies and brands in which they can invest their money. Parents have complete insight into all transactions and with their approval, money can be invested.
When a child starts the investment process, he can initially invest in one type of entertainment industry like Netflix, but over time he has to expand his investment to other industries. In this way, they enrich their portfolio and later they do not depend only on one source of income, thus on several of them. This is an advantage if one branch of the industry they invest in loses money, so it’s good to have a backup plan. (2)
Speaks from heart, always too passionate and driven by emotions. Spins the words with kindness & sharpness, intriguing your ever-inscrutable minds.