How to talk to children about money

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

This should be taught at school, but for some reason they are not taught. Let's figure out how to explain to children what kind of animal this is - money.

Not so long ago I found myself in a completely new situation for myself. A five-year-old girl, in whose upbringing I am involved, approached and very seriously asked:

Tamara, where does the money come from?

I began to happily explain (money is given for work, and so on), and after just a couple of days, instead of "Dad, buy ice cream," she said: "Dad, you go to work, make money and buy me ice cream." That is, the girl has not yet understood the value of someone else's labor, but what I told her, absorbed instantly … Personally, it amazed me.

Money is one of those fundamental things that we learn most of the time “in between,” but if this approach worked, no one would be reading the financial planning articles on our website, right? And many smart uncles and aunts every month would not ask: "Where did my salary go?" The ability to handle money is one of the few skills that will be useful to absolutely everyone, so it is up to you to fill this gap in the existing education system.

Two rules

1. Everything has its time. First, children of different ages need to be told different things. A three-year-old doesn't need to know anything about taxes. A teenager knows without you that money is received at work. Secondly, the information from you should be dosed, with sufficient interruptions for the child to fully absorb it. Otherwise, he will have the feeling of another school obligation. Hence the second rule.
2. The best learning format is play. Or semi-game. This works for all ages, but especially for children. Play is their natural state, so there is no need to take the child away from an interesting activity and sit in front of him to talk about money. The more spontaneous and relaxed your lessons are, the better.

From 3 to 5 years old

Lesson number 1. People buy things for money

How to teach it:

• Ask your child to help you count the coins. Explain the denominations. When you figure out the coins, go to paper money.
• In the store, when buying something for the child (ice cream, juice, something small), invite him to collect the required amount on his own.
• Play in the store: lay out beautiful things, toys, hairpins, cars (depending on the gender of the child), print out toy money and invite him to be a seller first, and then a buyer.
• When something good happens (for example, a friend comes to visit your daughter), point out that it is a joy that you do not have to pay for. In other words, show that not everything pleasant is for sale.

Lesson number 2. Money is earned at work

How to teach it:

• When the child once again asks: "Daddy, Daddy, what are you doing?" While you are working at the computer, tell him about your work: what are your responsibilities, what you are paid for, why you are appreciated and respected.
• On the street, passing people in uniform (waiters of street cafes, police officers), point at them and ask who they are. “What do you think they do? Why do you need their work? " Tell your daughter, stuck to a beautiful window, that all these dolls are the property of the owner of the store and that she is an entrepreneur.
• On the way, offer to play “I want to work (name of profession)”. The winner is the one who comes up with more.

Lesson number 3. Sometimes you can't buy what you want right away

How to teach it:

• When the child is expecting something pleasant (a holiday, a free swing), remind you that sometimes you have to wait before getting what you want.
• Start a cute piggy bank and give your child coins every time he does something well or when he helps you in something. Open the piggy bank every month or two. Say: “See how much you have accumulated! I also have a piggy bank for big purchases. "And then let him buy what he wants with his own money.

Lesson number 4. There is a difference between what you want and what you need

How to teach it:

• Make cards with pictures of different purchases and invite your child to divide them into two piles: "I want" and "I must".
• At the store, ask what is more important to buy: food (meat, cheese, fruit, etc.) or a chocolate bar. When the child (of course) chooses a chocolate bar, remind that you asked about the important, and not just about the pleasant. Tell them that the chocolates are for fun, but you can't eat them alone.
• Draw together a chart that you divide into sections by type of purchase. Food, household goods, entertainment and so on. Demonstrate that money is not endless and that it is important to properly distribute it.

6 to 10 years old

Lesson number 1. Sometimes you need to think before you buy

How to teach it:

• If you have already decided to buy a toy for your child, put him next to him (“I want to choose where to buy, together with you”) and together browse online stores in search of the best price.
• At the store, tell them that this is “our budget for fruits” and offer to choose which ones to buy.
• Show on the discounted price tag and explain what it is.
• If the child wants something very expensive, show him on the diagram that you made, which piece of your budget this purchase will "eat".

Lesson number 2. It's not worth buying something on the Internet yet

How to teach it:

• When a child comes across (and he will surely come across) blocked content in some game on the tablet, explain that they are asking for money for him and that this money is completely real, even if it is not visible.
• Make an agreement that, without your permission, the child will not enter any personal information on the Internet ("Shh, do not tell the Internet your secrets").
• Know which sites your child is visiting.

Lesson number 3. Electronic money is stored in the bank, and it can be multiplied

How to teach it:

• Take your child with you to the bank on a less crowded day. Answer all questions.
• Show your plastic card and tell us why you got it.
• Tell us about savings accounts. Create a free savings account for your child.

11 to 13 years old

Lesson number 1. Set aside 10 kopecks for each ruble, and the sooner the better

How to teach it:

• Invite your child to save (in the same piggy bank or in an open account) 10% of his pocket money. And praise if he does.
• Make a mood board with photos and price tags for inexpensive items that your child wants to buy. Offer to pick a new goal from the mood board once a month and save for it.
• Support the child's investments: relatively speaking, for every ruble in the piggy bank or on the account from him, report 25 kopecks from yourself.
• Show account statements or balance the piggy bank so that the child can see how the amount grows.
• Sit down together and count (math practice, by the way) how much your son or daughter will save by age 50 if he saves a certain amount every year.

Lesson number 2. Getting a credit card is like borrowing

How to teach it:

• Show by example how a credit card works and how it differs from ordinary "plastic" ("You take 50 from me, return 10, but in the end you pay not 50, but …").
• Give examples of when you used a credit card (or took out a loan) and explain why it was justified.

Lesson number 3. Be careful with online purchases and personal data

How to teach it:

• Play a free-to-play online game with your child and explain at the right time how in-app purchases work, why they are so tempting, and why they should be avoided.
• If your child already has an email address, tell them about spam and teach them not to open emails from an unknown person.
• Tell us about SMS scammers who urgently ask to send money to the phone and so on.
• Explain the concept of personal information (from daddy's credit card number to email or physical address) and tell them that they are not intended for strangers.

From 14 to 18 years old

Lesson number 1. We detail expenses

How to teach it:

• Show with specific numbers (with visual charts or infographics) how much you earn and where the money goes. How much does it cost to live in your city, how much does it spend on food per day and per month, how much does clothing, transport, entertainment, school supplies cost.
• Advise your child to write down (at least in a notebook, at least in an application) where his pocket money goes. You can offer an additional reward for this, but non-monetary is better. For example, the right to go out with friends until late once a week. Keep in mind that even with a reward, the chances of your child actually recording expenses are minimal if you don't do it yourself.

Lesson number 2. First work

How to teach it:

• Offer your child to receive a "salary" for housework, help with purchases, paying bills (let them taste the beauty of queues at Sberbank), or caring for pets. Moreover, it is a salary once a month, and not a quick pocket for every day.
• Look for a summer job together. If you find something interesting, discuss how the child will get a job: rehearse the interview, write a motivation letter each and compare your options.
• Tell us about remote work, its pros and cons.

Lesson number 3. The first "plastic"

How to teach it:

• Now everyone needs the card: it simplifies life. There is no need to be afraid of her. The sooner a child has it, the faster he will learn to use it wisely. Get an additional card to your account, set a comfortable limit for it (no more than X rubles per day, for example) and give it to the child. Say that this is only his thing, personal, and the money there is his money, quite real. Everything you said about personal data and the value of paper money applies here too.
• Show by the example of some planned purchase how to use the card on the Internet, at an ATM, in a store. If you pay your child for work or simply give out pocket ones, give a choice of how he can receive them: in cash or on a card. Or split in half. Teach him to replenish the card on his own in a suitable ATM or terminal.
• Keep track of your child's spending so you don't get caught. You give your child money to learn how to use it responsibly. If he senses your mistrust (even justified), the effect will be the opposite. Either you teach responsibility, but you also give reasonable freedom, or you don’t give freedom, but you don’t expect independence either. It doesn't happen otherwise.

What's next

From the age of 18 (for someone earlier), you can talk about such things as taxes (VAT on price tags, personal income tax, deductions from wages) and pensions, about the basic forms of entrepreneurship and their structure. If you yourself have gaps in this area, it's time to fill them.

And remember that the meaning of all these lessons is not only educational. Many adults are afraid of money, feel disgust and distrust of it. They say, “Money is not happiness,” and they like to blame society for the pressure it allegedly puts on them to “be rich”. On the other hand, there are those who make a cult out of money. They say: “Happiness is not in money, but in their quantity,” and they go to buy … I don’t know. The tenth yacht.

You can show your son or daughter through lessons, games and, most importantly, by personal example that money is a tool for a good life. That they give you the opportunity to choose (Turkey or the Carpathians, taxi or metro, cook or order) and please yourself, give protection and stability. Money must be respected and multiplied. Even to love, but without fanaticism. As a friend, not as a deity.

And no, you cannot build happiness on money alone, but it will be much easier to do this if there are no problems with money. Do you want this for your child? Get started today.