You can prepare your children to be smart with money by following the tips in this article.
This guide is made to help parents develop financial literacy in children. To do this, parents, you need to take the following steps:
- tell me what it is barter(or exchange of goods), and talk about the universality of money
- introduce the child to banknote denominations and coins, enter into account arithmetic
- tell , how do you earn money and what you spend it on
- explain that the child is already can earn money now money (for housework, for example)
- explain the difference between needs and wishes
- when buying a gift, give an opportunity child make your own choice
- explain principle of accumulation money
Introduction
Financial literacy is the ability to use knowledge and skills to make the right decisions related to money and spending. Financial literacy covers a wide range of different financial topics, from everyday personal financial accounting skills to long-term personal financial planning for retirement.
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Unfortunately, financial literacy is not taught in schools: Only in the 2012-2013 academic year did experimental teaching begin for high school students in Ukrainian schools. According to 1kr.ua, “ The pilot course “Financial Literacy” will be taught in 68 educational institutions, including colleges, in 14 regions of Ukraine for 10th grade students during 2012-13 academic year " But despite the government’s attempts to influence the financial literacy of children and adolescents, the main teachers of financial literacy remain parents(or guardians).
An obstacle may arise here in the form of an excuse that, they say, “ I’m not much of a financial spender myself." or " I already have financial problems, so what can I explain to my child?" But these are just excuses that are not reasons. Firstly, you have experience(both positive and negative) that you can pass on to your child. Secondly, you can develop and improve financially with your baby and become a role model for him. And thirdly, you don’t have to be a financial guru to explain the basic principles to your child.
It is important for parents to understand that sooner or later children will still will hear some facts about money, and they will form an impression of finances based on external data. This external data, as you know, is often erroneous. Classmates may say that you can only become rich if you steal. Or at a sports club someone might blurt out that only the lucky ones will become successful. Imagine the impact these statements could have if your child seriously believed their “friends.” That's why your participation is important so that everything falls into place: to you You need to tell your child that money must be earned by honest work. And - I repeat - you don’t need to know the difference between a weighted and an exponential moving average to teach your child basic concepts about money, saving, and financial literacy.
By teaching your children financial literacy, you can help them understand the connections between work, earnings, spending and saving; they used to will understand the value of money and learn how to make financial decisions correctly. So let's get started.
What is money; barter
IN early age children begin to understand that money is needed in order to buy something. But they often misunderstand the real nature of money; and how money ends up in parents’ pockets - too.
Tell your child about how people traded in ancient times: what they exchanged goods. For example, a cow could be exchanged for 30 chickens, or a clay pot for a loaf of bread. And although this method was effective for some time, there were three big problems(let the child come to them himself by analyzing your leading questions):
- Items to be exchanged were difficult to carry: “ What is easier to bring to the market: a bunch of grapes or a donkey?»
- goods for exchange were discrete, i.e. it was difficult to crush them: “ what if you have a goat and need bread? Is it profitable to exchange a goat for a loaf of bread?»
- goods deteriorated and lost value over time: “ How long does an egg stay fresh? Does anyone need rotten meat?»
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And now tell the child what was invented universal goods - money, which solved the three problems mentioned above. The first money (in our understanding of the term) were gold coins: they did not lose value over time, they could be issued in different denominations, and they were easy to carry. Well, gold has always been in price due to its beauty and physical properties.
What is money?
Everything is simple here. Show your child everything (if possible) denominations of banknotes and coins currency of the country in which you live. Tell us that most countries have their own currency, and it mainly consists of similar coins and bills.
Talk about the value of each denomination, and practice simple monetary arithmetic together: “ How many nickels are in hryvnia?" or " How to collect the amount of 64 rubles?" Guiding questions may vary depending on your child's age, knowledge, and other aspects, but here are some universal guidelines:
- place a pile of coins in front of the child: let the child will sort them into groups according to face value(this way he/she will learn to quickly distinguish coins of different denominations)
- tell your child what names coins and banknotes have: “fifty kopecks,” “quarters,” “nickel,” “chervonets”; tell us what you can buy for each denomination (the child will have an idea of the value of each coin and bill)
- ask your child to add up different amounts: “how to collect 6 and a half hryvnia?” or “what coins and bills would you take to pay 131 rubles, 67 kopecks?”
- Finally, to consolidate knowledge, go to the store at an off-peak time and let your child pay for the purchase himself
After playing with coins and bills, be sure to Wash your child's hands thoroughly and teach him to constantly wash his hands after contact with money, because money “passes” thousands of hands and ends up in completely different and unpredictable places.
Alternative types of money
Tell your children about (and, if possible, show them) payment cards, traveler's checks, collection checks, and other types of money. Be sure to explain that the financial resource in cards and checks is not unlimited: all operations with alternative methods are still need to pay real money earned.
Earnings
Children understand that their parents have money from somewhere, but the time has come to explain to them in more detail, where does money come from.
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Tell children what people need work to make money. Tell us about different options jobs: some are paid hourly, some are paid a fixed fee, and some are paid per project. Also tell us that you can look for a short-term job, or you can build a career. Also - that you can become an entrepreneur and start your own business, and about the additional difficulties associated with this activity (unstable income, dependence on yourself, investments, etc.).
Next, tell your child how you earn money. You. For example: " I work as a financial consultant in a large company. Every month I receive a fixed salary. Your mother and I spend money on the needs of the family, and a little on various wishes and entertainment. We set aside a small portion of money for unexpected expenses in the future.»
After the child understands that money is needed earn money, he might be interested, how can he/she earn money now?. And this is an absolutely healthy desire. In response, you can offer to the child earn money by doing some housework. There is also the prospect of receiving additional cash bonuses for holidays (such as birthdays, New Years, etc.). A child, having realized that he can “earn” money himself, usually becomes inspired and excited by the prospect of earning money, opening your own business. But if your child starts throwing around ideas about starting his own business, which by our standards seems like complete (or partial) nonsense, under no circumstances don't dissuade him, but listen, no matter how strange or absurd his idea may be: he (s) is not going to implement it now and you will still have time to discuss all aspects. And if you tell your child something like “ you will never be able to do this" or " this is a bad idea ”, then you can significantly damage his entrepreneurial spirit and self-confidence.
When talking about future profession your child, consider the following:
- What are your favorite (most successful) subjects at school?
- why these particular items and not others?
- what professions can use skills from these subjects and sciences?
- what are your favorite hobbies?
- Are there any options to turn a hobby into employment?
Pocket money
Giving money to children on a regular basis is a normal practice. These small amounts will allow the child to receive material with which to handle when developing financial literacy skills. The only important thing is to get used to regularly paying amounts to your child; for example, every Monday morning (before the start of the school week) or every Friday. And increase the amount every year.
In addition to the simple regular (linear - technically speaking) issuance of money to the child, there is also a method based on the work performed. He implies that the child receives money for performing certain types of work around the house.
No matter which method you choose, be consistent : if you give money without reference to housework, then pay it even if the child did the work poorly or did not do it at all (and at the same time use other methods of influence for educational purposes). If you do pay your child for work done, then encourage overfulfillment of the plan, and fine for underfulfillment.
Needs vs wants
An important component of a child’s financial education is understanding what is a need and what is a desire.
Need- what you need to survive
Wish- what we would like to have
There are a number of needs and desires that are free: air, the opportunity to go for a morning jog or an evening walk, fresh water in a stream, etc. But for most needs and desires it is necessary pay.
Examples needs:
- house (in a broad sense)
- healthcare
- cloth
Examples wishes:
- technological innovations (smartphones, tablets, players)
- jewelry, bijouterie
- cinema, television, computer games
For clear example, trigger the child’s analytical process with a question like “ Would you like to spend our entire salary on toys? What would we eat in this case?» Organize the dialogue so that the child understands that paying utility bills and buying food is where more important than desires yours or his.
At this stage, the child will have a predictable desire to find a solution: just spend more for all articles at once. But your task will be to remind him/her of your salary/income and that it is finite: it is impossible to simply take more money out of nowhere.
Look at a magazine or catalogue, point out your child's needs and wishes so that his understanding is reinforced. When going to the mall, show demonstrative needs and demonstrative wants. And keep asking leading questions: “ Do you think it will be easy for us without a refrigerator?», « Can the marina pay for water?», « What is more important to buy: food or a toy?»
To get a clearer idea of what ratio of costs falls on needs and what on desires, make a simple pie chart, divided into 3-5 sectors, which will show the main items of family expenses. There must be a “wishes” sector there so that the child understands approximately how many resources are provided for this article. Color the diagram together: it will be fun.
Direct link to chart; after the transition, click “print” in the browser to print; You can also customize the diagram to your liking by changing the numbers after “&chd=t:” in the address bar of the image.)
The right choice: where to spend your money
Each person makes decisions about where to spend this or that amount. If you teach children to make conscious assessments of options and choices, you will give them self-confidence, develop their decisiveness skills and leave a rewarding experience.
Depending on the age of your child(ren), the difficulty of the following techniques will vary, but the essence remains the same.
Having completed the steps described above, your child should already understand that money is a limited resource, and that most of the family budget is (usually) spent on needs. Now it's time to explain to the child what he has choice. The choice is whether to buy him markers or pencils, soft toy a lion cub or a cat, get a bicycle or scooter with a ball, an iPhone with an iPad or a mac book pro, etc. So, start providing choice simple: with a list of equivalent products.
After the child makes a few simple choices, start complicating it leveling, and add variable costs to it: “ The ball costs 100 hryvnia, and the robot costs 200. You can buy a ball and something else for 200 hryvnia”, and the child will have to think. Weighing whether he will be more carefully select, what product does he really need; this process of reflection is very important.
After making several decisions based on cost, introduce new variables: reasons for and reasons against. Ask your child to write list what he wants most, and then let him give reasons for and against. For example: reasons for purchasing the latest iPhone model may include:
- my friends will respect me
- it is comfortable, stylish and aesthetically pleasing
- it will help me with my studies and daily tasks
Reasons against purchases:
- it's expensive
- I already have a smartphone that performs most functions
- I will rid myself of fake “friends” who will reach out to me because of the latest iPhone
And when the child has a list of reasons for and against each wish, enter an additional parameter into this table as an indicative one. cost of goods and you will have a great pivot table.
Ask the child narrow the list to 1 product, and at the same time say that the child will have to spend 10 percent of the amount (or another percentage at your discretion) from his own pocket money. When a child evaluates and makes decisions, especially when considering the need to spend his or her money, he or she will approach very carefully in the decision. In the end, it turns out that this new iPhone is not really needed.
If suddenly you do not agree with the child’s choice, under no circumstances no need to talk What " This bad choice ” because you are demotivating him. Instead, point out the advantages and disadvantages of this or that choice and try to give the child as transparent and objective a picture as possible. But final decision let the child take it himself (within reasonable limits, of course).
Principle of accumulation
Sooner or later there will come a time when your child wants to buy some quite an expensive thing, which neither you nor the child can buy right away. This circumstance is a great moment start explaining child about principle of accumulation.
Just like you have to periodically wait in line to buy something, wait for a birthday or other holiday, etc., to buy an expensive thing you have to wait. And this expectation implies saving money. The point is simple: if the purchase is worth it, then you can wait.
Clarify a few things with your child:
- how long does your baby already have?
- how much does the product (toy, or whatever) cost, including delivery and other costs
- how much money can a child save in a week?
- how long will it take to receive the required amount?
It may turn out that the child needs, for example, another 8 weeks to receive the required amount and this is normal. Offer your child extra income for doing housework. But also explain that if he does not follow the accumulation schedule, then the process will drag on for a longer period and the purchase will be postponed.
To add interest to the process, write on the calendar how the accumulated amount will be replenished over time. And on the day when the amount is reached, draw the product itself, or something else, so that you have fun, and so that the child can clearly understand imagined why he does it all.
It is important to overcome the parental desire to help the child with money, especially in the last stages of savings. Such an irresponsible act will not only doom you to a lifetime of forking out money, but will also nullify all the efforts of the child: the lesson will not be learned, the feeling achieved result will dissipate, the value of the product will decrease, and the attitude towards the product will worsen. It’s better to offer your child additional income: let him go plant a tree or wash a car or something else.
An additional benefit of saving is weeding out unnecessary things. Today your child may decide that he needs a new bike. But after a week, when the rush has passed, and the old bike seems to be riding great, it may turn out that a new bike is not really needed to wait so long.
Conclusion
In order for your children to be able to manage money correctly, you - parents - must prepare them and teach financial literacy
Every parent wants his child, when he grows up, to become a successful and independent person who would not need for anything. To make the dream come true, mothers and fathers make sure that the child receives a good education. First, teachers in kindergarten help with this, then teachers in school and higher education. educational institution, as well as grandparents. All family invests in the child both financial and time resources. And, of course, everyone expects the result. The child doesn’t have to wait long: now he’s already counting to one hundred, taking first place at Olympiads, winning competitions, receiving medals, and his parents are proud of their little genius.
These mysterious expenses.
But we all know that education, which increases a child’s capabilities, requires considerable expenses. And the child may hear from his parents that so much money is spent on English classes, so much money is spent on music school, and so on. By the age of six, a child is already familiar with the word “ Expenses“, but at the same time does not know what the parents’ wages are and how the family budget is distributed. Every day a child hears that parents buy food, clothes, pay for various services, pay rent, and so on. And often a seemingly simple request to buy a toy simply remains unrealized. The child does not understand why this happens. There is enough money for other items and things, but not for one toy. Parents have a wallet in which there is always money. The baby begins to think that his parents simply don’t love him. As a result, the conflict grows.
To avoid this conflict, the child must know how and where money comes from, and how to properly distribute it for needs.
Stages of teaching a child financial literacy.
Stage 1. Where does the money come from (baby 4-7 years old).
At this stage it is necessary to tell the child about labor, focusing on the fact that labor is the source of material well-being of any person. From time to time, tell your child that money is a reward for work.
The child should know who you work for, what your profession. At the same time, the baby should feel that you really like the work you are doing. Be sure to share your successes with your child, because kids love to brag about their parents just as much as parents do about their children.
Stage 2. Money for a pie (primary school children).
At this stage, the baby must learn to perform purchases. The school canteen is suitable for training. Introduce your little one to money: what kind of coins there are, what denominations the bills come in, when they give change and how to change money.
Stage 3. A trip to a large store (child 7-9 years old).
Now the child must learn to buy goods in large stores, for example, in supermarkets. IN vocabulary child includes a new concept “Check”. Ask your child to go to the store to buy bread, and give him more money than the product costs. Thanks to this, the child will be able to remember mathematics, and this way you can check his attitude towards passing. If a child brings bread and the right change, you can give it to the baby, saying that this is his reward for his work. This first reward can become the basis of your pocket money.
Stage 4. Pocket money (child 9-17 years old).
Experts assure that the child should have pocket money. Although many parents do not agree with this opinion. Thanks to his personal budget, the child develops a skill such as financial planning. What is this? You need to give pocket money once every two weeks or once a month. The child has the right to decide for himself what he will buy and when. However, parents should remember that if a child has spent his pocket money ahead of time, under no circumstances give a new amount. You have an agreed period when your son or daughter receives a certain amount for personal expenses. Otherwise, training will be meaningless.
Stage 5. Control (during the entire training).
Of course, the financial activities of children should be under control parents. But this control should not be aggressive and intrusive. Prepare for the fact that there will be mistakes and losses. However, you should not react negatively to this. Be patient, discuss everything with your child and don’t forget to help. Just help, and don’t do it instead of the child. Give your child the opportunity to make his own decisions and act as he sees fit. Then learning financial literacy will be beneficial and in the future the child will be able to correctly and rationally distribute his money.
Publications on the topic:
\ The purpose of this manual: to consolidate and expand children’s knowledge about animals and flora oh alive and inanimate nature, rules of conduct.
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Abstract of the educational activity for financial literacy of children of senior preschool age “Young financiers” Summary of GCD on financial literacy of older children preschool age. “Young financiers” Type of GCD: generalization of knowledge. Goal: formation.
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Teaching children the basics of reading preparatory group Teacher Malanina M.V. MADO "Child Development Center - Kindergarten No. 30" Kungur.
Additional education program “Teaching reading” for children of senior preschool age Explanatory note Preparing for literacy is one of the main tasks in preschool institution. Experience working with preschool children.
Program for teaching children with multiple developmental disabilities computer literacy “Step Forward”. Explanatory note. One of the promising areas for the development of correctional education is the use of new information.
Entertainment on the basics of life safety (life safety) for children of senior preschool age. Goal: formation of the foundations of safety.
One of the most desirable skills that most people would like to master is the ability to manage money wisely. Meanwhile, it is better to learn this from childhood. We will talk about this in our article.
1. Involve your child in the family budget
Children have a desire to buy something early, so the first conversations about the family budget can begin at the age of 4, when the child is already able to understand many things. This is a great opportunity to tell people that money comes from hard work.
Introduce him to your family's finances and explain what mandatory expenses you have and what you do with the rest of the money. With young children, this is best done using the example of orange slices or Lego pieces, but with teenagers you can talk more seriously, talking about spending as a percentage. For a child, this is an acquaintance with adulthood, for which you should prepare in advance.
2. Monitor your reaction to your child’s financial requests.
If you react irritably to every child’s request to buy something, constantly saying that you cannot afford such a thing because it is too expensive for you, then he will form the opinion that money is always not enough and that it is the greatest value. And also that having your own desires is bad.
Start with agreement: It is important for children to know that they are understood and their needs are taken into account. Explain that this month’s expenses have already been budgeted and, unfortunately, his wishes were not implemented. Try to help your child find options to make his dream come true: ask for this as a gift for New Year; save; find a similar thing, but cheaper; sell something you don't use. It should be clear to him why the item cannot be purchased now and what the alternative is.
3. Shop mindfully with your child.
Children often accompany us on shopping trips, and it is also useful to use this as an opportunity for financial education. Although the child cannot yet buy goods on his own, he is already able to choose. Explain to your child why you take this or that quantity of goods, tell them why you choose one of several similar goods, discuss the quality and cost, and the feasibility of the purchase.
Try to pay with cash at the checkout - this will make it easier for your child to understand the intricacies of their turnover: money is running out, and you need to earn it again.
4. Allocate weekly pocket money
Pocket money can appear in a child’s life as early as 5-7 years old. Let it be a small amount that you can give him weekly. It is important that he can dispose of this money at his own discretion. You can advise something, but the final decision should be up to the child. Teach your children to treat money carefully: for example, a piggy bank or a small wallet is suitable for this.
When the amount is given irregularly or parents can withdraw it at any time, then children simply will not be able to understand how to manage money and will not learn strategy. It is better to give money either just like that, or for things that are not the child’s immediate responsibilities. For example, housework, schoolwork and all the things that are present in everyday life families, you shouldn’t “pay”: this will only worsen your relationship and reduce your motivation for knowledge.
The first experiments with money may not be entirely successful, but gradually the child will learn to manage funds, count change, save for an important purchase - he will understand that money is disappearing and will treat it more consciously.
5. Play
Play is the main way for children to understand the world. Try introducing your child to money through play.
"Find cheaper"
Ask your child to find a product at a more affordable price or compete to see who can do it faster. These skills are useful at any age. Let him compare which is more expensive - fresh fruit or compote? Why are some goods more expensive and others cheaper? Discuss this.
"Buy it yourself"
Give your child the opportunity to do their own shopping. You can send him shopping with a small list of groceries, while you wait at the checkout. This is also a great way to protect yourself from vagaries in the store.
Planning a budget
With older children, discuss how money is spent. Draw a table on a piece of paper, designate the categories of expenses: food, clothing, transportation, health, housekeeping, gifts, entertainment. Let your child determine which expenses fall into which category. At the end of the week, tally up all your expenses by category and create a bar chart of your expenses. This way you will clearly see what you spent the most money on and what you spent the least on.
Statistics show that modern Russian parents invest a lot of personal funds in their children’s education. The age of up to 3 years and the age of 5-7 years are extremely alarming for parents of preschoolers, and the appeal to specialists, including teachers, is especially high during these years. To paid services kindergarten were successful, you need:
- Studying the demand of parents living in a specific area and creating a list of services based on demand.
- Competent positioning of services, conveying information about them to the target audience.
- Competitive quality of the services themselves.
- Competitive quality of service in the provision of services.
Each of these stages is filled with many nuances. Managerial, legal, social, pedagogical aspects building a success system for a preschool educational organization requires study and coordination with each other. You can thoughtfully study successful experience in this area and build an actual change project at the All-Russian Practical Seminar , which will be held in St. Petersburg on April 24-27, 2017.
Financial literacy of a preschooler: why and how
Modern children participate in shopping in the store; at the age of 4-7 children may be allowed to have pocket money. At the same time, many parents complain that children do not know the value of money, expect expensive gifts, or do not appreciate new toys, and parents seek help from teachers in solving these problems. A modern kindergarten can help with this by having a program for the development of financial literacy for preschoolers.
To begin with, answer the question: what is the main task of educating financial literacy that should be solved before the age of 7? Be sure to write down your option.
Before the age of 7 years, the basics of financial literacy can be instilled through basic moral ideas: about good, evil, beautiful, ugly, good and bad. The main task is to give the concept of a thrifty attitude towards things, natural resources, and then money. The central idea is thrift, “I am a thrifty child.”
Hence the rule: ideas about the norms of financial behavior are formed on the basis of a certain sequence of actions skillfully demonstrated by adults. Endless instructions and edifications resemble rain falling on soil into which grains have not been thrown.
You can also use games, analysis of the actions of fairy tale characters, conversations, and quests with preschoolers.
Problems to be solved:
- Provide simple economic knowledge.
- To form a caring and economical attitude towards money in children.
- Teach how to handle money: save, spend, invest, etc.
- Development of students' cognitive interest in questions
financial literacy and application of this knowledge in practice. - Increasing the validity of financial decisions made when planning family budgets.
- Formation of a positive attitude towards state and municipal finance, budget and tax legislation.
- To teach preschoolers to properly manage their behavior based on primary ideas about the world of finance.
- Determine the difference between “want” and “need”.
Example of a conversation with parents:
- Is your child being frugal?
- What does your child know about money? Does it differentiate between different coins and banknotes?
- Does your child know how to pay in cash in a store?
- Does your child receive pocket money? From whom? Regularly or occasionally? In what size?
- Does your child independently decide what to spend their pocket money on?
- Do you reward your child with money? Why?
- Do you discuss financial issues with your child? Which ones exactly (give examples).
- Do you involve your child in drawing up the family budget? In what situations?
Homework for mom and dad
- Talk to your child:
- What is money?
- Why is money needed?
- Where does the money come from?
- Do you have money?
- How do you spend your money?
- How much money do you need?
- What new have you learned?
Get even more specific methodological recommendations in the direction of “Development of financial literacy of preschoolers from 3 to 5 and from 5 to 7 years old” you can on .
Join our active creative work!
- The adventures of the cat Belobok, or economics for kids. Volgograd, 2015. Financial literacy notebook for preschoolers.
- Brodnikova E. Krasavina E. Children and money. Raising a millionaire. St. Petersburg, Peter, 2013.
- Kiyosaki R. Rich dad, poor dad. M., Potpourri, 2014.
- Hill N. Think and grow rich! M., Potpourri, 2014.
- Bodo Sh. Mani, or the ABC of money. M., Potpourri, 2006.
- Godfrey Joline. How to teach a child to handle money, Good Book, 2006
- Normakova I.V., Protasevich T.A. Beginnings of Economics. M, Vita-press, 2014.
- Sakharovskaya Yu. Where does the money go? How to competently manage your family budget. Alpina Business Books, 2000.
- Rudder A. Saving with pleasure, or how to save for a yacht. IG "Ves", 2013.
- Svetlova M. Money in your life. IG "Ves", 2013.
- Eggert J. Notes from an economist on happiness, success, prosperity. IG "Ves", 2013.
More useful information for the development of your kindergarten you will receive at the International Conference “Interaction between preschool educational institutions and families: best Russian practices and foreign experience” , which will take place on August 6-8. Come to the conference and you will learn how to gain the trust of parents and create a positive image of a preschool educational institution.
