Bogotá — The first years of life are a key stage for the acquisition of skills and tools. According to a study by the University of Cambridge, financial concepts and habits are formed up to the age of 7.
For this reason, it is key to instill in children from an early age the importance of saving, managing money and the value of things. Despite sounding complex, this task is easier than it seems and well worth the effort.
For this, the holidays are the opportunity perfect for boys and girls to carry out activities that familiarize them with new habits, in addition to allowing them to form new skills and extend their learning processes.
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Nu gave some recommendations to promote the teaching of financial education in the smallest of the house during the school break:
1. Give an allowance: It has been shown that children do not develop the habit of saving by only observing adults. Therefore, it is important that they can have their own money and learn to manage it.
Giving a weekly or monthly allowance is a way of setting an example, by establishing a value and explaining that with it you can buy anything from a sweet to a video game depending on how the child distributes and manages it.
The allowance allows boys and girls to learn from an early age that money is not infinite and that planning is necessary, generating a more conscious relationship with it and a long-term link with its good administration.
2. Set goals: Dreams are natural in children and should be encouraged and used to present money as a tool that allows some of them to be achieved.
If a child asks for a trip, a toy or a console, it is an opportunity to establish a savings goal that allows them to access what they long for.
It is not that the child must necessarily pay full price for what he wants; depending on the case, the value can even be symbolic. The important thing is to convey to him the importance of creating objectives and participating in their achievement.
3. Encourage the child to always save a fixed percentage: If the child already has an allowance, it is advisable to teach him to always separate a percentage of the value, be it 10%, 20% or even 50%. The important thing, in this case, is to create the habit of saving.
It is essential that children have fun and see money as a way to make things interesting and possible, therefore, it is not recommended that you save 100%, because it will generate the opposite effect by removing a stimulus.
It is recommended that the child see this exercise as a game in which he can win a final reward. The little ones, having their memory in development, need repetitions to process what they learn, so consistency is key to these activities.
4. Teaching about inversions: It is important to show the child with practice what can be generated with money. Parents can do dynamics with their children where they are in charge of saving some of their money and agreeing on a date for the return to the child. In the meantime, parents can use the money in a low-risk investment to hand it over with interest.
By receiving the money back, the child will reaffirm his trust towards the father and understand that money can pay off, even with small amounts. Then it’s time to explain, in a simple and age-consistent way, how money performs when invested.
Raising children with financial awareness is a large part of educating adults who are responsible with money and saving habits.
2023-07-29 06:14:29
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