Exploring Different Ways to Teach Kids Financial Literacy from a Young Age

    Teaching children about money is not an easy task for parents, especially since children can not stay interested for long. Therefore, it is necessary to find different methods and ways to make finances and money more interesting.

     

    Experts advise that it is very important to teach children about finances, saving, investing for kids, and rational use of money as early as possible.

    Kids debit cards for kids offer the creation of a savings plan, they enable children to invest in shares, donate money to the needy, have the option of earning and receiving money via card, and rationally manage money.

     

     

    1. Explain to children the origin of money

     

    Children take money for granted because they know that they need to pull their parents’ sleeves and they will get it. However, this can create certain problems for you later. 

     

    You have to explain to children from a young age that money does not grow on trees, does not come from magical machines (ATMs), but is earned through hard work. And that money must be treated with respect and not taken for granted.

     

    1. Issuing a credit card for children

     

    This method is teaching them financial literacy, responsibility, and fulfilling obligations. 

     

    Children have many options, from creating a savings plan, investing in shares, donating, spending, earning money, and fulfilling the responsibilities tables within the household and community.

     

    There are various options, some more affordable, some more expensive, it is up to the parents to decide which option is best for their children based on their income. 

     

    One of the more innovative ones is BusyKid because it offers the BusyPay option, which enables payment by a third party with a corresponding QR code.

     

    Parents have full control over their children’s transactions, they can also block unwanted content they deem inappropriate for children.

     

    Tables of activities and obligations can be adapted to each child regardless of age. 

     

    The tables contain household chores, curricular and extracurricular activities as well as sports activities.

     

    1. The importance of a savings plan

     

    Together with the children, parents decide what percentage of the allowance and salary they must set aside for savings. 

     

    It is very important to teach them to save for a higher goal, whether it is a new game, bicycle, technology, or something else. 

     

    Sometimes it is better to wait and save than to spend money on unnecessary things.

     

    1. Let them take part in procuring food

     

    Children learn best from you, so when you make a list of groceries for the grocery store, let them be a part of it. 

     

    In this way, they will be more aware of how it works and how much each item costs. 

     

    It is desirable to include them in the shopping trip and what they want you to buy for them they have to pay for themselves out of their pocket.

     

    1. Teach them social sensitivity

     

    Teach them that not everyone is as fortunate as they are to have a roof over their head, food and drink, toys, and various types of technology. 

     

    Some children do not even have basic needs, let alone toys and sweets. 

     

    Therefore, you should be an example to them, and teach them how to donate to those who need help the most. 

     

    Within the credit cards, you have various charities that children can donate their money to. If they are a little older, you can also enroll them to volunteer in public kitchens and other places that need help.

     

    1. Explain what money is to younger children through a game

     

    Research has shown that children from the age of 3 know what money is. The best way to explain to them what money is is through a game. 

     

    Younger children lose interest quickly, so it is very important to be creative in this matter. 

     

    We suggest that you play with them as seller and buyer and that they be at the cash register. 

     

    On this occasion, it is preferable to use real money to better understand what money is.

     

    Conclusion

     

    It is commendable that you, as parents, decide to teach your children about money from an early age. 

     

    For most parents, this is a taboo topic and they think that it is unnecessary to bother children with finances. 

     

    However, experts would not agree, they even believe that the sooner you introduce them to the world of finance, the easier their future will be. 

     

    Children can have a carefree childhood if you incorporate learning about money. In this way, you prepare them to have a much brighter, safer, and debt-free future.

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