Every adult should have financial literacy to help them manage their income or even loans that they obtain such as the bank rakyat personal loan from http://bankrakyatpersonalloan.info.
Properly and consistently teaching our children financial literacy at an early age will be beneficial to them as they grow up as this becomes part of them and their lifestyle. This is one way of safeguarding our children’s future. Financial literacy is to teach our children how to best handle or manage money in all possible ways. This includes teaching them how to earn, save, and spend money wisely.
What skills or values do children learn from financial literacy?
Most children hate math especially when they do not understand the concept taught. Financial literacy teaches children to be comfortable with numbers and give them a well-founded understanding of basic math skills.
The Relationship between Work and Money
Children are taught that money comes from your own hard work and effort. Therefore, they understand the value of money and how money should be valued since it isn’t something that magically appears in your pocket.
Budgeting Skills and Saving Habits
Teaching children to budget and save money fosters self-control, self-discipline, financial awareness, and responsibility.
Teaching Financial Literacy At Home
For instance, your child wants a new toy, instead of just giving it to them, tell them that they have to work for the money for them to be able to buy want they want. You can create an age-appropriate chore chart. For every chore they finish corresponds to a monetary value. Or you can also ask them to think of ways on how they can earn such as putting up a lemonade stand. They can loan an amount from you to start their stand and repay you in installment.
The “Three Money Jars” will teach your child how to budget, save, and share. Label one jar with Savings, the other jar with Spending, and remaining jar with Sharing. Every time your child gets rewarded or paid from a chore they finished, guide them by helping them to budget their money using the jars.
- The Budget Jar is for immediate or short-term spending like for a candy bar.
- The Savings Jar is for long-term goals. For instance, the new toy he was asking for, a new phone, or a new video game.
- The Sharing Jar is allotting an amount to help out others. Give your child the opportunity to choose which organization or cause he would want to share his money. i.e. animal shelter, for Save the Earth programs and projects, so on.