At what age a child is capable of receiving, handling and administering money is a question shared by many parents. How is he taught what is spending, saving and other basic economic notions? What do they understand and what not? What methods to use?
Although with the beginning of primary school (at six years) they are already in a position to start using money and know that it is used to buy, at that age they have not yet developed the ability to manage it. During childhood, imitation of behaviors and interactive play predominate, which is why specialists in the subject consider that the best way to learn about money is through play and the guidance of one's own home.
Riddles, thematic stories and interactive games are ideal to begin to understand. Likewise, watching parents plan their finances without making money a taboo subject is essential.
It is advisable that we deal with the issue of money with children on a day-to-day basis without turning it into something taboo. In this sense, it is a mistake to think that it is an area that does not yet concern them. However, it is important to convey the concept of saving to them in a positive and motivating way. We must stop seeing it as a sacrifice and begin to understand it as the first step to achieve our objectives, to buy something in the future that we can't today, to live calmer and happier because we will have an emergency fund in case unforeseen events arise.
They need to see family financial planning done, talk about savings, benefits and economic good times, but also debts. Take advantage of any occasion to explain the importance and value of money: comparing prices in the supermarket, reviewing bank statements or planning a family getaway according to our budget. Giving a small amount of money to children can be a useful tool for them to learn how to manage money. But how much do you have to give them? The amount must be determined according to the expenses that the parents estimate that the child will have and the budget of each family.
The payment can be given by linking it to a special task that you do at home or as a gift. It can be oriented in various ways. One part for her tastes, another for the contributions in which the child participates (a gift for a friend when his birthday arrives), and the last one, to save and get that toy he wants so much. They can use envelopes or piggy banks to distribute it.
It is essential to help children define their savings goals and motivate them to achieve them, put them in a visible place so they can see them and do not lose hope. The idea is that they are objectives that they love and if they are things that they can use several times, much better. Thus, they will enjoy their reward again and again, because it is about associating the savings with something good. This achievement will help increase your self-esteem. The first goals should be in the short term, between 15-20 days so that they are easy to achieve, the children do not get discouraged and enjoy their reward quickly.
Now that you know what you want, it's time to set the amount that will go into savings. You have to explain to children that saving is not what you have left over after spending. This is one of the erroneous beliefs that exist about saving and that prevents you from achieving a good habit. We need to help them figure out how much money they need to save to reach their goal and how long it will take them to save it.
Saving requires perseverance and discipline, so it will be easier for children to allocate a part of their money to their savings goal and another part for their day-to-day expenses. Regarding the latter, keep in mind that it is more fun to save if you can also have small expenses while saving. The piggy banks if they can be better transparent jars, children are very motivated to see their money grow.
