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How do you talk about money with kids?

Why is it vital to discuss money with children?

The sooner you start a conversation about  money with your child, the sooner you develop a reasonable attitude towards finances and your budget.

How do you talk about money with kids

This will allow him to go through the trial-and-error process sooner and learn how to act in the future. He will learn to plan expenses and  save money, make financial decisions on his own, value his time and resources. Allow him to set a toy as his first financial objective; he will know how to acquire it.

Children are more vulnerable to scammers . Because he does not yet grasp the hazards and trusts everyone, the youngster will not notice fraud if he is not prepared.

It is preferable to explain with the child ahead of time what types of fraud he might experience and how to handle them. Hackers, for example, have gained access to a friend's social media page and will be requested to transfer money on his name. Alternatively, an SMS message may have been received indicating that they purportedly made a transfer to the wrong phone number by mistake and were requesting that the money be returned. The youngster must be informed that such texts require verification: verify whether a friend calls or approaches you in person to ask you a question. for money, look at the balance of the phone - whether there was actually a transfer. It's better to ask your parents for help.

If a child from childhood learns to act carefully and carefully in financial matters, this will save him from major losses in the future.

----You have to start with yourself. Children learn by looking at adults. It is foolish to teach a child financial literacy and at the same time set the opposite example - either to squander money or go into austerity mode. The first thing you need to do is figure out your financial habits. If you  budget , spend money wisely , and  protect yourself from risks , your child is likely to learn to do the same faster.----

Rule number 1. Explain in a playful way

Games and experiments are the best ways to expose youngsters to money.

With toddlers, you can start simple:

What does money look like? Make a game for the kid: pretend you've discovered a treasure. How can you tell if it's real money or counterfeit?You can use real bills and "money" from Monopoly. Investigate: how to distinguish a genuine bill. 

Show your child photographs of watermarks, how letters and numbers shimmer, and where additional security measures are buried to demonstrate the signals of banknote authenticity. You can get a group of friends together and compete to see who can find the most animals and plants on the banknote with a magnifying glass.

---Hint: on 20$ bills you can find oak leaves, as well as eagle owl, roe deer, starfish, on 200$ bills - planets, rockets and even an astronaut.---

Where does the money come from? Explain to your child that money does not grow on trees and does not “take from the box” (ATM), as many kids believe.Tell us about the many types of vocations and why they are paid differently. Money does not arrive on its own at the first request, the youngster must understand. In a career, for example, you can organize a game. 

Children can choose from a variety of roles, including hairdresser, doctor, and baker. Give each person a set of toy money so they can ask for and pay for favors.

What can you buy with money? Let's start with the basics: we receive items and essential services in return for money. For example, if you don't buy milk in the morning, you won't have anything to eat with muesli, and if you don't pay for energy, your house would be dark and cold. Play shop: place a price on various items. 

Someone will sell something, and someone will purchase something. The most important thing is to teach the child that things don't just happen; you have to pay for them first.

More harder games are appropriate for younger students:

Sorting game. Invite your child to get together "for a ball", "hiking" or just for a picnic. Determine how much money you would be willing to spend on it. Make a list of the things you might need and what they cost. For example, several ball gowns, shoes and accessories of different cost. The child will need to collect a complete set of the necessary and at the same time meet the established budget.

Discuss with your child what he will take with him? What things are necessary for him, and what are secondary? Reflect with him on how to distinguish what you want from what you need and not spend too much. Should I spend all my money on a dress and go to the ball barefoot? Or go to the woods for a week with just candy and lemonade?

During the game, you can choose products for a real family picnic. Then the child will understand that his decision is not a game.

Quest in the store. Children love it when they buy something. But they must understand that resources are limited. When you go to the store with your child, invite him to become your “counter” and tell him when the amount of collected products reaches 100 dollar. Compare how much it costs: 10 dollar is one chicken, 2 kg of apples or a pound of sweets.

Rule number 2. We encourage children's savings

Desires are usually more than money. Help your child transform his "wishlist" into a specific financial goal . He must learn to make a choice - to give up the superfluous in favor of something more important and valuable. For example, do not spend money on chocolates every day, but at the end of the month buy yourself a new toy.

---Some parents make the mistake of giving their child a gift before they even want it. As a result, he has no reason to dream and he cannot have any financial goals - he has already bought everything.--

A piggy bank will help teach children to save for a dream . It can be an ordinary transparent jar (it’s convenient to watch how a pile of coins and banknotes grows), and a beautiful piggy bank with cars or princesses, and a traditional piggy bank. Teenagers are suitable for special mobile applications .

Rule #3

When a child has saved up, for example, for a toy, give him the opportunity to pay for it himself. He will be proud that he independently achieved the goal, and will remember this feeling for the rest of his life.

Already from school age, children can be trusted with purchases in the store according to the list from their parents. Teach them to be reasonable and attentive, compare prices and save money - but not at the expense of quality. First, this should be done in the presence of mom or dad, and then on your own.

Play "picky shopper": study the offers of different stores with your child, compare the ripeness of fruits, the freshness of vegetables, the weight of yogurts and the composition of cakes. Show that similar things can cost differently, and teach you how to choose good products at the best price.

Rule number 4. We teach you how to manage a budget in everyday life

Both adults and children need to learn how to realistically assess their resources and manage what they have. Should I spend all my pocket money at once or stretch it out over a week? Save for a dream or treat the whole class to ice cream?

Explain to the child that the amounts that you give him or the grandmother gives him for his birthday are completely his. So - it is up to him to decide how to dispose of them more effectively.

It is better to give the child money immediately for a certain period, for example, for a week. Sponsoring daily will result in more immediate spending. A certain amount of rubles for a week is a step towards long-term planning. Gradually expand the responsibility of the child - from buying food on the list to self-planning and buying school supplies, from choosing a friend's birthday gift for the right amount to managing your pocket budget for all the holidays.

👉Don't pay your child for every perfect grade or for doing household chores. Otherwise, you will create the wrong motivation for him. You can give money for additional help - for example, repairing a computer. And it is better to reward for academic success at the end of the year. The child will have time to correct grades, and money will not be the main incentive.👈

First-graders can be explained what the rent is, the family budget, discounts, sales, loans.
Children from the age of 10 can act as "financial advisors" to their family. Teach them about sustainable consumption and ask them to count how much money the family loses when they don't turn off the faucet and turn off the lights.

By their own example, parents can tell how they manage the family budget. How do you distribute salaries? How much money is spent on mandatory payments? How much do you save for vacation? How much do you spend on toys and entertainment?

Rule #5

In order not to grow up a miser, always remind your child that money in itself has no value. They mean exactly what they can buy. Explain that you can use the finances not only for yourself, but also for someone else who needs help.

For example, you can transfer some amount to charity. The child will be pleased to realize that he helped someone. Cultivate in him a positive attitude towards the idea of ​​sharing with someone. Remind them to do good deeds selflessly.

👉There is a very easy way to find out how your child prioritizes spending. Give him 10 identical coins and put three jars in front of him: "spend now", "save to buy" and "for good deeds". Ask the child to distribute the coins between the jars. 

Even if he tries to divide them equally, there will be one "extra" coin left, which will clarify the situation. Ask the child to explain his choice, listen patiently, do not comment immediately. And then calmly consider whether you want to correct his behavior and how exactly.---

Rule number 6. We respect the child's right to make mistakes

Your child is a different person, and his view of things may be different from yours. Be always ready for an open dialogue, especially in financial matters. Do not immediately rush to criticize his actions. Get their opinion first, then share yours.

👉Let children learn from their mistakes. For example, if your child spent money on nonsense that he wanted to save for some important purchase, do not scold him. Calculate with him how much longer he will have to save. Point him to the right conclusions.👈

Let him play enough with useless spending in childhood, but in the future it will help him avoid bigger financial problems.

Rule #7

You should not fill a child's head with phrases like "wealth is bad", "from the labors of the righteous you will not make stone chambers." The attitudes laid down in childhood can prevent a child from becoming prosperous in adulthood. Or even worse: teaching children that rich people are grabbers and hucksters, you can cause the opposite effect. For example, a child will think that cheating and cheating is the easiest and fastest way to financial success.

Be careful when commenting on other people's accomplishments. Don't judge them, but don't exalt them too much either. The child should not get the impression that only people with some special abilities can reach heights. Emphasize that your son or daughter can also become successful and wealthy if they study well and find their favorite job.

And in no case do not shift your adult problems onto your children - do not complain to your child about a mortgage and a small salary. This can create financial anxiety in the child. And in the future, he may, for example, agree to an unloved job only out of fear of being left without money. Create a sense of security and confidence in the future.

Rule #8

“Dad, how much do you earn?” Your income is confidential information. And kids are pretty talkative. It is unlikely that you would like the whole school to discuss your salary tomorrow. Explain that the amount of earnings may differ from month to month, tell us what it consists of. You can limit yourself to the phrase: "Enough for our family." If your child has not yet grown up to joint planning of the general family budget, it is better not to give exact numbers - it will still be difficult for him to assess whether this is a lot or a little.

“Why does Vasya have an expensive smartphone, and I have an ordinary push-button one?” The most crucial thing is to avoid judging Vasya and his parents simply because they offer him more expensive presents. And even more so, do not run to buy an expensive phone for your child on credit so that he is not ashamed in front of his classmates. By doing this, you show him a bad example of budget management.

Maybe it's really time to change the push-button phone to a modern smartphone. But it is not necessary to spend a lot of money on it. Explain to your teen that it is worth paying attention to the characteristics that are really needed, and not to the brand. 

Choose with him a decent phone at an affordable price. So he will learn to make an informed choice, and not be led by advertising tricks. Yes, and at the cost of a used spaceship, you won't have to fear that he'll misplace or have his smartphone stolen.

---Never ignore an uncomfortable question that your child may ask you.. Find out why he is interested. Sometimes the reason is more important than the question itself. And the solution to the problem may not be financial at all.---

If your child has begun comparing your family's wealth with others, don't get defensive or switch to blaming others.Explain how everyone is distinct from one another, that each person's skills and what is now in demand on the job market can vary greatly, that different professions pay differently, and that every family has its own set of values. When a youngster is asked a question like this, it's a great chance to talk to them about their future goals and how they envision their adult lives.

“How did Aunt Mila manage to blow through all of her savings?” This is a wonderful time to discuss financial con artists and outline the fundamental principles of financial security:

  • The PIN code on the card should not be noted down or shared with anybody.
  • Never let your card out of your sight when paying with it somewhere. So, for example, in a cafe, the waiter must bring a portable POS terminal or invite you to pay at the checkout.
  • Immediately inform the bank and parents if the card is lost. And also if you received an SMS message about buying or withdrawing money from an ATM, but you didn’t do it.
  • When login into the Internet bank or mobile bank, avoid using open Wi-Fi sites (Internet in public places: transportation, cafes, and theaters).
  • Avoid internet shopping at dubious sites (for example, you should be alerted by the low price of the latest model of sneakers in an online store).
  • Avoid answering any alarm calls, SMS, mail, or social media communications informing you that a relative or acquaintance is in need of money. Instead, you should immediately call your parents or relatives, warn that such messages are being sent on their behalf - perhaps their account or mail has been hacked.
  • Emails with links to winning a phone, tablet, laptop, etc. should not be clicked. Free cheese only happens in a mousetrap. The link will probably only give you a virus.
  • Do not post photos of new purchases, the situation in your apartment, plane or train tickets with dates of departure and arrival on social networks. Do not write posts about how soon you will