How to talk about personal finances with your children? Here we explain it to you

Do you think talking to children about money is difficult? Childhood is a great time to instill financial knowledge that will empower children in the future to be more productive, independent and aware adults savings values.

Don’t be afraid to start involving them in the household budget, in spending planning or in family projects because At their age, they have a great capacity to learn and should be used so that they do not make mistakes while growing.

Now, the activities they participate in may vary according to their maturity. Below are some examples shared by Forbes Mexico:

  • Between 5 and 7 years: Ask him to share with you what toys he wants, what he would like to do on the weekend, or where he would like to travel. Then share your wishes with him and tell him how you will save to make them come true.
  • Between 7 and 9 years: Give him a piggy bank and explain that by filling it he can buy whatever he wants.
  • Between 9 and 12 years: Encourage your child to keep track of their spending at school and give small rewards for simple savings goals.

Three tips to get kids involved in finances

The family is the main guide for the little ones, so we share some of them Mastercard referral involve them in the economic dynamics of the house:

  • Give an example: If you have to make a significant expense, plan it and show your child how to do it.
  • Provide a monthly or weekly payment: Allocating an amount of money will help them understand the value of things and differentiate needs from wants.
  • Set your goals: Help them set short- and medium-term savings goals and specify how much money they will save each week until they reach it.

How to teach them to manage debt?

Debts are present in the daily life of all adults, however, it is important to know that there are some that contribute to growth and others that are harmful. What children should learn is just that: their differences.

According to Dominican Popular BankMeasuring and controlling their impulses at an early age will help them understand that taking out a loan to satisfy a desire has long-term consequences, whether positive or negative.

For example, if you want to attend an academic course that contributes to your education, but if the requested money is to pay for a trip to the cinema, you should analyze whether you will need the same amount for something more in the future. Important.

In addition, they should learn that before taking on any debt, they must have a plan for how it will be paid off.

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