Financial literacy for a child – 7 tips to get started

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The first pocket money is an important stage in a child’s life. This is a sign of maturity, growing freedom and trust on the part of parents.

Psychologists recommend starting to allocate money to children at the age of 6-7, when the concept of the value of things develops. But how much, how and for what to give, so as not to spoil the novice businessman, but, on the contrary, to lay the first skills of financial literacy?

Life hack 1. Give an amount that will be adequate to the financial condition of the family

Let it not be purely symbolic. The money given should be enough to buy something pleasant: an inexpensive toy, a movie ticket, or a favorite treat.

Life hack 2. Do not impose your choice on your child

There is a funny story circulating on the net about how a mother gave her daughter pocket money for a week’s excursion with the class, and she bought a giant box of chips for a seven-day supply. Reading morality to a child in this case is useless. But it is possible and necessary to sympathize with him that because of some chips he has deprived himself of the opportunity to purchase something much more pleasant.

Life hack 3. Learn to save

A convenient option is a virtual piggy bank in a mobile application. Moreover, modern developers already offer special solutions for children. Application “Your circle START” from the Japanese SBI Bank, for example, it is equipped with functionality that is understandable for a child: a built-in piggy bank, an account, a history of transactions. The piggy bank can be replenished by both parents from their account and children, using the remaining limits or receiving a reward for completed tasks. The piggy bank can be “broken” at any time and used the money. As soon as this happens, parents will be notified immediately.

Life hack 4. Let’s have interesting tasks

Not only solving problems, but also getting a reward for them is a serious incentive for a novice financier. The question is what tasks to propose. It is a bad idea to ask to wash the floor for money. It will be much more useful for the child to solve some interesting arithmetic or financial problem. The result of the work can be immediately put into a virtual piggy bank in the application “Your circle START”.

Life hack 5. Separate the concepts of pocket and target money

Pocket money is the amount that a child can dispose of at his own discretion, target money is those that he spends on specific goals set by his parents: breakfasts, excursions, circles, and so on.

Life hack 6. Protect your child’s finances

The easiest way to do this is with a payment keyring. Financial fraud is not uncommon now, and the keychain is equipped with special protection against fraudsters, is limited in payments and, moreover, does not break (the accessory will not be damaged even if immersed in water). The keychain is convenient to use when going to school, paying for meals and travel in Moscow transport. By the way, if desired, adults can also use it, for example, your elderly parents. Having issued a keychain on them, you will be calm about the safety of their nerves and finances. It is a convenient and safe alternative to the card, which is easy to use both on vacation and in everyday life.

Life hack 7. Manage the income and expenses of the whole family competently

Finally, the most effective way to make your child financially literate is to set a good personal example. It is convenient to track family income and expenses using an adult application “Your circle”… The application allows you to create a common family account, as well as set individual spending limits for each family member: for a day, a week or a month. And track spending. And with its help, it is convenient to make transfers, pay for utilities and mobile communications. You can also open additional accounts and deposits quickly and easily using the application. You can withdraw cash without commission at any SBI Bank ATM.

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