Children and young people are privileged with technology. They were born with great technological advances but still need financial education. Unlike us, despite the fact that we saw how the advances developed, sometimes we even have difficulty adapting.
Although for many things they are already prepared and know how to do them almost automatically, it does not apply to finances. The following are issues that you must understand as soon as possible to ensure good finances.
Apps and electronic banking
Most adults are not familiar with electronic banking or apps that help finance. Children can begin to become familiar with apps, games. In addition, these tools are very useful for when they grow up. They could probably understand more than we do about the functioning of devices.
The savings must come first then the expense. It is probably one of the mistakes that are passed on to children from an early age. Or rather, children learn from parents because of the bad financial habits they see applied.
By means of meals, you can start giving a fixed income to children. Unless it is not for the parents who usually give weekly meals, they could remunerate activities or chores. You can not spend what you do not have; only through earning money you can spend money.
Check This Out: Tips for Getting in Business Savings
Planning what you earn can help you make smarter expenses. Instead of spending your allowance on sweets you can organize an outing to the amusement park or buy a toy or an expensive product.
Finally, they will be able to make use of what is achieved through efforts. This stops, thinks and feels better when buying things; it is not so much waste because it knows what it has cost.
You need to understand how credit works, of course, you cannot go into detail about technical terms, but you can explain the basics. The credit consists of being able to obtain a product with money that is not yet available; they must pay it until they cover the total cost. You can apply it based on examples of financing or only through games.
Having money or buying things you cannot pay has an extra cost that is paid with interest. They should not see it as an easy way out to buy as much as they want without measuring consequences.
It must be learned through experiences and real things. This can be achieved through cards for children. Most banks offer these facilities. That way you can have a clear idea. They must learn that money does not arrive magically; they can be remunerated for actions or tasks that are fulfilled.
Financial education is the only thing that will help them defend themselves and make intelligent financial decisions. It will be of great help to prevent them from acquiring debts, they will know the financial tools in detail and will be able to make use of them. As parents, we have a responsibility not to make the same mistakes and have a better quality of life than us.