The "Christmas envelope" from relatives is a classic gift for young people, too big for toys, too much by now with clear ideas about clothing and desires with the risk of making the wrong brand, size, taste.
Here then, typically in the Italian tradition, comes the money.
But how to make children understand that they must know how to manage them, that money has a value because it is the result of work and sacrifices?
In a period like the one we are experiencing, it is even more important to help them understand how to manage small sums, in order to give them all the necessary tools to understand their meaning and perhaps learn to save.
A recent survey by Kruk reveals, in fact, that young people of generation Z (18/24 year olds) have little financial knowledge: they still use the piggy bank for their savings (59%), they do not know what a TFR is (83%). , some have never been to the bank (9%).
“Young people are optimistic, they do not think about the most negative scenarios, and often this is what leads them to get into debt for their purchases, without the possibility of repaying the installments”, says Simona Scarpa, District Manager Italy Field Structure Kruk.
Here are some tips:
1) Set yourself a goal: from an early age it is important to understand that often, in the course of life, it is necessary to make choices and even some small sacrifices in order to later reach a greater goal and a greater reward;
2) Plan the times: once you have given yourself a goal, think about the time frame in which you can reach it, without giving up everything!
3) Strategically divide your expenses: learning to divide your money into small "nest egg" will help you understand how much you can spend right away and how much better to set aside to buy something you really want in the future but is currently unreachable economically.
An effective method is that of the 50/30/20 which plans to allocate 50% of your budget to essential and fixed expenses (such as the subscription to public transport), 30% to discretionary ones (such as a dinner out) and 20% to savings.
4) Patience is the virtue of the strong: whether it's the latest phone model, a new video game or the new accessory from the Spring-Summer collection… over time it will be possible to find it at a discount!
5) Keep track of all expenses: does the money disappear?
It is a common problem!
An app or notebook can help you keep your expenses under control and understand right away what the "flaw" is in the management of savings.
It is suggested initially to try to take into account also the small economic outings such as the snack machine, until you become familiar with this type of tools, and then divide the expenses into broader categories.