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How to teach your children personal finances

February 23, 2020

Teaching a child finances is not as difficult as one might think, the trick is to put situations that they can size.

The opinions expressed by employees are personal.

, leader in online loans from person to person in Mexico, write down how to teach your children Personal Finance, which also means a way of life for them to live peacefully thanks to economic stability.

“Teaching children habits is essential because they will be very useful throughout their lives, while other types of values ​​and routines are instilled. Teaching children saving habits and small financial strategies will be more advantageous to learn the value of things and take care of what they get with their effort. Remember that children are like sponges, so learning this type of habits at an early age will be very simple for them ”, Gerardo Obregón, Founder and General Director of Prestadero.com.

How to teach your children personal financesHow to teach your children personal finances

The National Commission for the Protection and Defense of Users of Financial Services (Condusef) states that speaking to children of Financial Education does not refer to learning complicated numbers and terms – although they have contact with this issue at home, in the school, in the media– but to teach children the importance of money and what it costs to earn it, showing how to plan purchases and avoid unnecessary expenses.

Obregón comments: Teaching a child finances is not as difficult as one might think, the trick is to put situations that they can size. “If you give them income exercises, household expenses, etc., logically they will not understand what you are talking about, you have to go step by step with simpler situations.”

  • Financial vocabulary

The first thing that is suggested is that they begin to familiarize themselves with the words of income, expenses, savings, and understand what they mean.

  • With the example

Children learn from what they see, are observers and tend to adopt the attitudes of those around them like their parents and siblings. The way in which family members handle money and make decisions together, affects the little ones.

  • With real exercises

At home you surely give your child a certain amount of money called “Sunday” or “allowance” to spend it on candy, something for school and if you want a more expensive toy, you will surely save to buy it.

In this way, children will know about the value of money, learn to make a savings plan, not to spend too much, prevent and have a guard, make a budget plan, and succeed financially. In order to better understand, compare and use the financial services available in the market, proactive guidance from parents and siblings is required.

In addition, parents should promote that schools establish in the educational plan a compulsory subject of Financial Education at a secondary level, so that the following generations have the necessary knowledge to not suffer their entire lives due to bad money management, avoid voluntary financial exclusion, and forming a strengthened financial market, Obregón concluded.

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