Numerous recent economic studies have shown that about 50% of parents avoid talking to their children about money. Economic issues are perceived as unnecessary or too complex for children. However, it should not be that difficult to talk about money. Here are some guidelines for starting a financial discussion with your children and helping them understand the basics of the economy.
Get started early
Start guiding your child into a housekeeper at a young age. Take advantage of everyday examples and situations – they make economic themes easier for your child to understand. This way, you can slowly begin to explain even more complicated things, such as long-term savings or the mortgage you need to buy a house. By helping your child understand the laws of the economy at an early age, you will be laying the foundation for learning how to manage your own finances in the future.
Teach the importance of goals and planning
We all know that kids stare at new stuff, whether it’s a pair of sneakers or the latest video game. So why not teach them how to save their own pocket money so they can get the things they want? By explaining to your child the monetary value of goods and working together on how much and how much to save on new goods, you teach your child to value both the purchases themselves and the money they spend.
Explain the principles of the loan
Your child probably does not understand the financial responsibilities of your family, such as a mortgage or credit account. So openly explain what these obligations are; If you want to explain to your child how a bank loan works, let them borrow a small amount from them and learn how to repay. For older children, you can add interest, which means adding a little extra to the repayment of the loan.
Play games to build your financial skills together
Games and games that build up your financial skills are a great help for parents who hesitate to talk about money. All kids love to play and have fun, so combine learning economic skills with games like Monopoly or mobile games with a financial theme – these are natural ways to build your child’s skills. Your child’s future is the most important investment of your life. So start using our tips today!
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