10 Tips You Must Teach Your Kids About Finances

Financial solvency is no accident, it is the product of work and family effort.

In several Latin American countries, unfortunately, it is very common to hear the words “devaluation” or “crisis” and live from day to day thinking about what the job can be lost, that there will not be enough income to meet the economic commitments or that the famine can reach us at some point, but the worst thing is that there is hardly any talk about “saving,” “working,” “stopping shopping,” or learning about personal finance.

Many of our economic problems are intimately related to our indiscipline and the lack of learning about financial management, in short: No one taught us from an early age to properly manage our money.

The problem is such that several governments are looking for a way that the new generations can receive these teachings in the classrooms, but you know? no school or course will be able to properly teach what parents are entitled to.

High level published very interesting information on this topic presenting the results of the PISA test, a test that is done at an international level to know the levels of learning and performance of young people in different countries, on financial competencies, showing what many of us already know:

Students with good reading comprehension and mathematics performed well in financial education, this is that they know, understand and apply financial principles in their lives, but above all, that their parents are involved in teaching them these principles.

As which?

Cultivate the habit of reading

If they clearly understand what they read, it will be much easier to know and learn about financial topics.

Teach them financial math

Perhaps that of “financial mathematics” sounds very complicated but it is nothing more than learning how to use it on a day-to-day basis, to get percentages to recognize discounts or charges, talk about credit cards and their correct use, for example.

Dedicate time and effort to work and study

Good things do not come for free nor are they the product of chance, they are the result of effort and perseverance, an extra effort can make a big difference in your academic and therefore financial achievement.

Opening a bank account as a teenager

The PISA results confirm that those students who began to use banking services as a savings card from a young age will be able to better understand various financial principles apart from acquiring good habits such as saving.

Make financial decisions as a family

If the children learn by watching their parents how they solve the household expenses, how they manage it and come to terms with its administration and care, they will be people who will take care of their property. They will not be wasteful and their financial future will be much more stable.

Set goals that include challenges

For example, saving electricity, saving water, raising money for a family activity, to make a purchase or help someone, all this will do nothing more than educate and warm the little ones for their future life.

readBarefoot children are happier and healthier

Make budgets

And sticking to them will give them a lot of security and strengthen their character. Remember. Who can control his body and his wallet, will succeed in life.

Talk to them about debt, credit, and interest

Not trying to scare but teaching children about these issues so that they are familiar terms and easily understood and applied.

Good financial habits

Teach your children to work, earn money, manage it wisely, save and be generous, if you grasp this, your children will never be poor or have needs.

Don’t put too much emotional weight on money

There is a funny phrase that says: “Money is not happiness, but it does help a lot!” Money is important, but it is not everything. There will be times that you cannot buy or have everything you want and that should not make us feel bad or less important.

Doing this with your children will make the difference in their future.

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