It is possible that negative effects of poor financial management have affected us throughout our adult lives, and examples of this are not lacking. But even if we don't, the sooner we give our children a financial education—also known as financial literacy—the more likely they are to avoid financial mistakes in the future.
Today, money therapy is no longer considered an adult-only issue. This is an important life skill, and children should be encouraged to develop it. The world has changed dramatically in recent years, and even children in this day and age must be more aware of how money affects and works more broadly than buying sweets from pocket money.
What is financial literacy for children? It is an understanding and proficiency in the use of various financial skills such as investments, budget management, personal financial management, and more. It's basically having appropriate knowledge about money, having financial skills, understanding and applying to make the right financial decisions, big and small. Those with financial literacy should have financial skills. This is the key thing to self-satisfaction that makes it possible to achieve economic stability. Similarly, financial literacy for children means teaching them early and at an age-appropriate level the key concepts, principles, and skills in the field.
So how and what do children teach about money? For each age group in general, and for each child in particular, a different level of instruction is appropriate. Examples of topics that can be taught to preschoolers: Children need to understand that money has to be earned. This understanding can be developed by distinguishing between tasks in the family home that are mandatory and divided among family members by virtue of their being such, and additional tasks that are explained, defined and planned in advance, and whose performance will generate income for the children if they are performed. This income can be added to the usual pocket money;
Another issue is what money is. The names and values of coins and banknotes should be known and familiar to children, as well as their value in terms of purchasing power.
How do you bring these and other issues to the attention of children? Parents can use various courses and websites dedicated to the subject, but most importantly get started.
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