Children and money
Kids and money. If you have children, you need to start them teaching finance, dealing with money, saving and investing. Education at school does not embrace economics even its basics. In the absence of this knowledge, our children can cause in their life financial mistakes. It will depend on all of you, if you are ready to charge your money. It’s easy to teach a child to deal with money. Children and money it is really an important topic.
At the beginning
I always wondered why children don’t study finance or economics at school at all. Used to think, that if it was a mishap. I was mistaken. In my opinion there is no will to teach children about. Naturally, I have nowhere to find official confirmation of this hypothesis but I can sure of it.
Why financial education for children is so important
What is conclusion? We must teach children on our own, how to deal with money. Why is that so important? The answer appeared at the beginning of this post. You have to teach children to be good at handling money. They will meet financial markets with stocks, savings, loans. In addition to banks, insurers, or institutions that operate on the basis of regulations that outline their methods of operation, there are other institutions, that are not subject of governmental control. These are privately certified terms and conditions of financial character, which require even more knowledge. There are a number of financial dealers who often count on their own profits.
Familiarity with finances
Lack of knowledge, knowledge of financial institutions, basic legal mechanisms can lead not only children, but also adults in financial trouble. I will use situation, I met. I know a person who is a well payed computer scientist. He spent some time abroad, where she worked. It was not only the lands of Western Europe, but also the lands of the Far East and the USA. In a word, a man with wide knowledge of world. During one of the conversations, I found out, that he was investing certain amounts of money on stock market. I was not impressed, but the additional information shocked me. He said that there are certain investment methods, allways effective. Next he said that dolars and other currencies are only pieces of paper. I thought we were talking about cryptocurrencies, but it wasn’t like that, we were talking about “real” currencies. Really! I wanted to tell him something about the coverage of money in gold, in goods, but he did not want to listen. He must have thought I was biting my nose.
Financial education topics and issues
But, by the way, we deviated from the course. It had to be about children and money. Your role as a parent or relative to teach children about money. It would be good if the children were taught finances and economics at school, but surely they wouldn’t. But to the point. The main elements that I will describe in the series of posts about “children and money”are:
- pocket money
- awareness of money and consumption
- occupation and salaries
- how to show children knowledge about money
- how to teach children earnings
- knowledge about the functioning of financial and non-financial institutions
- financial behaviors
Children should be teach to live “among” money from very early age. This knowledge must, on the one hand, give them the opportunity to correct managing their money and avoid financial traps at all.