How to teach children to save? Here are some expert tips

In today’s society, characterized by its tendency to consumerismit is a challenge for children to recognize the authentic value things and learn them worry about money

That’s why it’s important to teach financial practices and introduce economic concepts and habits that can influence the decisions children make in later stages of their lives.

According to the website one hundred squares in conjunction with the bank Daviviendait is necessary for the little ones to learn good use of money and how to save it. In the financial institution’s program called “Monetarium”, in which children learn different forms of savings, it is recommended that advice for adequate use of resources is adapted to age, emphasizing that money should be an important topic to discuss at home.

However, it can be complicated to recognize and educate yourself because, according to Santiago Rodríguez, a professor at the Faculty of Administration at the Universidad de los Andes and an expert in personal finance, in an interview with the media Forbes Colombiamoney is usually a taboo in households due to economic problems.

Which makes it difficult for adults responsible for finances to manage them in the future. In fact, according to a survey conducted by Nu Bank, 52% of people do not use any financial instruments plan or control your spending.

Saving is a basic financial habit when buying a home; It is a vehicle that allows you to build capital to cover the down payment

According to information published on the blog about one hundred squaresSaving is the first step to children being able to achieve their expectations in the future, whether travel, starting a business or buying a house.

“Savings is a fundamental financial habit when buying a home; it’s a means of building equity to cover the down payment,” he explained. Davivienda in the article.

Teaching methods on this topic differed among the shared advice. For example, if there are minors in preschool ageinstruction on proper use is recommended natural resources As water or light either by turning off the taps, turning off the power and checking its use.

However, in the case of older children, between 6 and 10 years, It is appropriate to start commenting on the monetary value of objects that surround the minor, such as theirs toys, supplies, clothes, among others for invite him to take care of them.

Experts advise that when children are already receiving a daily money for your snacks or entertainmentit’s time to “begin the habit of saving of this money to achieve goals such as buying an item they want, going out to eat with friends, doing some outdoor activity

Tips to teach your kids to save

Encourage children to save some of their money with a goal in mind, such as buying an item, a toy, or going for a walk.

According to media cited social enterprise management experts Natalie Cano and Fabián Orozco Forbesthe reason for teaching finance to minors is to get them to learn 5 topics for example: the purpose of money, how to set goals, ways to encourage savings, a culture of prosperity and learning that not everything can be achieved with material things.

It should be noted that the Bank of the Republic of Colombia has various free brochures aimed at children that teach them how to use money in an interactive and creative way. In these published formats, they explain concepts such as the definition of money, how inflation works, and the function of banks.

Some practical tips for teaching your children to save are:

  1. Give children the opportunity to manage their own money: Give them a fixed amount regularly to help them make financial decisions.
  2. Encourage minors to save part of your money with a goal in mind, such as buying an item, a toy, or going for a walk.
  3. Learn about different financial instruments: You can teach them about savings accounts, debit and credit cards, and how interest and investing work.
  4. Teach children to plan: Creating an income and expense statement with them to see when and how much you need to reach your goal will make budgeting easier in the future.
  5. Innovate and be creative: Children learn while they play, so using tools like Monopoly can be a good choice for teaching about money management, the importance of saving and the consequences of financial decisions.

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