How to teach a child to handle money
A Life / / December 19, 2019
What qualities determine the success of the child in the future
That the child has learned to efficiently manage money and achieve success in adult life, it is necessary from a very early age instill in him two valuable qualities: the ability to overcome the immediate desire for greater rewards in the future and the ability to act independently. Let us examine these qualities in more detail.
delayed gratification
Delayed gratification - is the ability to deal with short-term pleasures and wait for the delayed reward.
In a Stanford marshmallow experimentCognitive and attentional mechanisms in delay of gratification. children given the choice to receive a small reward now or award more after a short time.
The researchers followed the children until adolescence, and found that children who were able to wait longer in experimentThey were more successful later in life. This showed that the ability to wait for rewards play an important role in maintaining health, achieving success and prosperity.
Independence
This quality provides a sense of self control and the ability to build a judgment irrespective of other people. Over time, any child starts to show independence, trying to separate themselves from their parents, and to act independently.
It is important not to suppress the desire for independence of the child, and to support and guide it along the way. Children who learn to be free, passing through certain stages, grow into successful and productive people.
Below we give several ways to gradually instill a child these two qualities - independence and the ability to renounce immediate gratification - first through games and stories, and then with the appropriate regulations and tips.
How to teach money management at different ages
Since the development of children occurs gradually, and at each age stage requires different measures and ways of learning, consider several periods:
- preschool age (3-7 years);
- primary school (7-11 years);
- adolescence (11-14 years);
- early adolescence (14-18 years).
Next, tell how to teach children:
- to distinguish their needs from desires;
- wisely manage your money;
- not only take but give.
Preschool age (3-7 years)
While pre-school children are not well controlled by their spontaneous behavior, nevertheless it is possible to teach them to exercise willpower. Games, described below, will help them to learn to wait for a delayed reward.
At this stage, children begin to check the development of their independence, parents often hear demanding "I myself!" When trying to perform for them habitual actions. Let them test the limits of their capabilities, at the same time supporting and guiding. Shown below strategies will help give children a choice.
To distinguish needs from wants
1. Play a game of "I want to and have to." The essence of the game is to distinguish between what you want, what you need to do. Ask questions in the spirit of "dinner - a want or need?" You can play this game every time a child asks about something: to include cartoon go for a walk.
2. Play a game of "Who then is less than or more." When your child asks for something in the store, try to offer him the choice right now to buy a small toy or candy, or wait until tomorrow or the weekend and get something more desirable and valuable. If the child agrees, always keep Promise.
3. Tell your child a story in which the trouble occurred due to the fact that hastened the hero. For example, when Prince Ivan burned skin Frog Princess, rather than wait for the magic to be held and it will be a princess forever. You can think of a fairy tale, in which a boy or a girl rushed to receive the award, so received far less than they could.
Spending money wisely
1. Show your child that you can save up for some fun. For example, you can give him a few days for a few rubles, and when accumulated the necessary amount to go to the store together and buy what he wants.
2. When you pay by card, including credit, be sure to tell your child what you spend your money. He must know that the money you pay for everything that you buy, and do not use some sort of a magical substance that is taken out of nowhere, so it has no value.
3. Play the store. Make cash improvised things, deliver goods and price tags on pieces of paper. Give the child a certain amount of money. Suppose he goes to your store and buy some things. At any time you can switch roles, but follow the rules: you can only buy at the price that was originally installed.
Not only take but also give
1. Make the family piggy bank. Teach your child saveBut not fast fun and to some major purchases: clothing, bicycle, telephone.
2. Show that you, too, make their money in a piggy bank. Set the number of coins that the child will be thrown into the piggy bank every day, and then with it, add to the treasury of 50% of its investments. He will learn from your example, and see how the incremental investments to increase the total amount.
3. Teach donate toys. Ask your child to choose two or three of the relatively new and to give, to give in the garden or thrown into the container for the needy.
Primary school age (7-11 years)
At this stage, children are often fascinated by money. This is a great opportunity to explain to the child that this bank account, and to continue his acquaintance with the world of money.
At this time, children develop a sense of pride in their accomplishments and abilities. This is a good time for the introduction of fees for work on the house. It is not necessary to pay for the child that is part of his daily duties: cleaning toys, restoring order in his room, cleaning dishes after meals. However, you can give money for some extra work: washing windows, cleaning the sofa, or carpet, washing dishes after a holiday.
To distinguish needs from wants
1. Give the child a choice. For example, offer to buy ice cream for three days a week or one big toy at the end of the week. Show him this toy, explain that it will be able to get it only if you give up the daily pleasure in the form of ice cream.
2. Let your child take part in the decision on a large purchase. Call him when you discuss major family purchase. Explain why you agree to such a solution, from which the refuse to buy an expensive thing, why it is needed.
3. Teach contribute to the projects. If your child wants to do a project - selling pens in school, start a blog, sell hendmeyd - discuss its contribution to this cause. At least part of the money needed for the project, it should pay out of their pocket or donated funds.
Spending money wisely
1. Compare prices of the same products in the store before you buy them. Talk with your child about why you buy it is this, rather than another product.
2. Create rules to savings. Encourage your child save a certain percentage of each cash receipt, such as pocket money or gifts for the holidays.
3. Create a child account or card. Now some banks provide an opportunity to open a card for children from six years. This is an additional card linked to the account of parents, which you can transfer money. In the banking application, you will see all the child operations.
Not only take but also give
1. Teach your child to help others. For example, it may give some of their money or toys to needy children. Explain that there are families in which the income is too small to buy toys for children, it can help someone become happier.
2. Learn how to help a person. You can select a person who needs help, and show your child how to help him. This may be an older man in whose house you will get out with your child, or a sick kid, he sent some of his money. If you help a specific person, the benefits for him and the contribution your child is perceived much easier and clearer.
3. Establish rules for the charity. Agree with the child, that for one new toy (clothing, means of transportation), it will give an old (but not very tattered) to charity.
Adolescence (11-14 years)
At this age children seek independence. They test the boundaries of their freedom and move from childhood to adolescence. At this time, well awaken in children entrepreneurship spirit: Listen to their ideas and let them come true.
Kids better understand the math - they can talk about percentages and explain the workings of the banking system. In addition, they are becoming more sensitive and understanding, realizing that all families are different material possibilities, so that in your conversations about the charity can be addressed more complex matter.
To distinguish needs from wants
1. Before you buy something, you teach the child to look for information about the product on the web. Read reviews, compare the coveted purchase with other brand name products. Discuss whether or not to buy a product now, or wait for sales, order cheap with a longer delivery.
2. Agree on deferred payments. We all sometimes make impulsive purchases. Agree with your child whether he will pay for his impulsive purchase now or give you the money later.
3. Talk about savings for a rainy day. Explain to your child that in life there are times when they can urgently need money. This is the case should be postponed reserve. Encourage your child to think up a few of these situations, which can happen in his life.
Spending money wisely
1. Explain the difference between advertising and reviews. You can play with the child in the game "The difference between advertising article from non-advertising survey, based on personal experience."
2. Teach your child to use cash. People spend twice as much if they use a credit card instead of cash.
3. Explain to your child the difference between buying at the money and buying on credit. Tell us how much interest he will have to pay the bank and how many eventually will cost the same thing. Explain the risk of bad loans.
Not only take but also give
1. Tell your child about the inequality of incomes, the homeless and low-income people.
2. Encourage your child to think about what others need. Discuss with them what the problem is in our and other countries, Brainstorm how you can solve these problems.
3. Together, decide how many hours a week or month a child can spend on helping others.
Early adolescence (14-18 years)
This is the age when a person can not be called an adult, but he understands the adult world is much better and already considers himself a part of it.
Many of the children after school or even high school, try to work and get their first money. Maybe you should talk to your child about how to save money for education.
It is important to give the child the freedom to plan long-term solutions. He will make mistakes, let him that. - Your task is not to protect it from errors, and explain how to learn them.
To distinguish needs from wants
1. Tell us about the rule of 24 hours. Teach your child before making a decision about a major purchase to wait 24 hours. This will protect it from spontaneous spending.
2. Discuss the reasons for which he wants to buy something expensive. Ask why he wants to buy it, if it considers that an expensive purchase will make him happy.
3. Teach your child to prioritize. Explain why you need to devote time to their studies, sports, extracurricular activities, even if you have to sacrifice entertainment. Ability to prioritize help to manage money in the future.
Spending money wisely
1. Teach your child budget planning. Together, make a budget for the month, and at the end of the period check whether the plans coincide with reality.
2. Introduce your child to the investment instruments. Tell us where and why it is worth investing.
3. Tell us about the loans. Your child may first encounter with the desire to borrow money or lend to friends. Tell us how debt can destroy a friendship, when necessary to lend and how to refuse to maintain a good relationship.
Not only take but also give
1. Find out what area inspires your child to think together about what it can do for development and assistance in this area.
2. If the child does not know what to do, help them find a passion and continue to seek employment in this field.
3. Help me find a balance. Your child can get carried away by strong solution of any problem. Help him to find a balance that something he can do now, but something will have to be postponed for the future.
People gradually learn the value of money, no one is born with this feeling. Applying these methods, you can help your child grow into a responsible and successful adult who understands the value of money, so spend them wisely and carefully.
You may be difficult to start, especially if you did not have the appropriate education of a child, but eventually you get used to and may themselves begin to refer to money more wisely.
see also
- 5 important rules of how to give your child pocket money →
- How to grow a successful children, and do not overdo it with the education →
- What to teach the child that he has achieved success in the future →