We all remember Pinocchio, who thoughtlessly sold the alphabet for four soldo in order to buy a ticket to the theater. In fact, the book cost much more, and Carlo's dad had to sacrifice his interests to buy it.
Teaching children to be financially literate is not easy. Toddlers know from an early age that toys cost money. At what age should boys and girls be introduced to the world of money? What should be done so that the child understands their value well? How to teach how to properly manage funds?
“Every evening my son greets me with a question:“Mom, did you buy me a toy?”, Says Olga Ponomareva. - It's hard for me to answer his question every time, to explain that daily spending on cars is superfluous. He does not yet understand that the family budget is not so easy. Isn't it too early to explain to a five-year-old boy that it is impossible to buy whatever he wants?"
Experts believe that you need to know the world of money from an early age.
“In different countries, studies have been conducted that have shown that the foundations of financial behavior are laid in a child under six years old. He draws conclusions, paying attention to what is happening around. What knowledge he has time to acquire, how people close to him behave, by this moment, will determine whether he will be a curmudgeon in the future or, conversely, money will not linger in his hands. Further, this behavior can only be corrected, - says the financier, author of children's books about money Eduard Matveyev."
Here, as in everything else, the child first of all learns from the example of the parents. It is naive to think that it is enough to say “learn to spend money correctly” and continue to waste your last funds yourself. In this case, no matter how many times the parents say the magic words, the miracle will not happen. The child remembers what he sees every day, and it depends on this how he will manage his money.
“In order for a child to draw the right conclusions, it is necessary to involve him in the family team from the age of five or six. He must be present when discussing spending. This gives an understanding of the costs of the family budget, - says Eduard Matveev. - Children should know what kind of income the family has, what are the compulsory expenses. It is necessary to put into their heads the understanding that everything that is outside the plan can be bought only with the funds remaining from the mandatory payments or earn extra money on them. If there is no money left, you can invite the child to think together what can be saved in favor of other expenses."
According to the expert, if parents manage to involve their children in financial matters, then at ten they already stop asking them to buy something extra. On the contrary, a turning point occurs, and the children have a desire to earn money on their own.
“In such cases, it is necessary to help the child to gain new experience. For example, to instruct to sell unnecessary things through the site of free ads, advises Eduard Matveev. - Agree on what percentage of the proceeds the child will receive in case of success. Have him create an account, take photos of what you want to sell, describe the product, and post an ad. For safety, you can contact customers yourself. The experience of earning raises the child to a higher level of understanding of the role of money."
To give or not to give?
An important question that many people ask is whether it is necessary to give a child money as a gift for a holiday, and to encourage him with a ruble for success? On the one hand, it is very convenient, because a teenager knows better what he needs. On the other hand, there is a risk that a valuable gift will slip through your fingers, and even worse, will be spent on unwanted manifestations of "adulthood" like alcohol and cigarettes. Experts say there is no taboo here.
“I believe that there is nothing wrong with donating money,” says Alina Selishcheva, a psychologist at ANO DPO at the Vector regional center. “It happens that a child dreams of something very much, but there is no way to get it right away. My friends had a case when their son really wanted to buy a guitar, and saved up for it. In this case, a gift in money is a perfectly acceptable contribution to the realization of a dream. If your son or daughter does not have such a goal, then before making a monetary gift or denying it, you need to discuss what he would like to spend it on? It may turn out that the teenager wants to invite friends for a birthday party at a bowling alley or in a cafe. It makes sense for parents to meet halfway. It happens that a teenager wants to get money because he plans to buy a gift for his girlfriend. This is also a goal worthy of the understanding of parents, because their child grows up, he has a need for more freedom and non-childish actions."
There will be no time later
Experts do not name universal recipes for teaching a child to manage money, because children are always unique. It is advised to observe the child and involve him in the discussion of the topic of money as soon as he begins to show interest. And the first exam for financial education of the child will take place when he goes to school. If the money allocated for food, he will spend strictly according to the intended purpose, that is good. If he will save on food in favor of entertainment and shopping, then something is going wrong, and it may be worth consulting with a psychologist.
In any case, you cannot wait for the child to grow up and understand everything himself. Already in high school there will be no time for that: preparations for the OGE and the Unified State Exam, classes with tutors, and the choice of a profession will begin. Well, after school, another, adult life begins. It is important that by this age the child has already had practical experience with money. Then there will be no need to worry that he is not ready for independence.
How to save up for study?
Experts believe that the most practical way to introduce children to the world of money is to give out pocket money every week, which the child can use at his own discretion. The task of adults is to help figure out which is better: to spend the money received on sweets today, or, for example, to save up for a desired toy or something else.
This tool can be used from the age of 5-6, approximately when the baby asks for money, so that he himself can pay for a ticket in transport or for a purchase in a store.
The determination of the amount must be approached wisely. The pocket amount should be adequate for age and needs, for babies it will be 30-50 rubles. in Week. It is necessary to explain to the child how best to spend. For example, help to determine the financial goal for which he can save in 1–1.5 months. With pocket money of 50 rubles. he is unlikely to save up for an expensive gadget a week, and then the pocket money trick will not work. But saving up for an inexpensive but coveted toy is quite possible.
If you give a preschool child 1-2 thousand rubles. a week, he has enough money for everything he wants, and he doesn't even have to make choices and make difficult decisions. However, experts believe that in some cases, if the family budget allows, parents can give more significant pocket money. It is definitely not worth giving 10 thousand a week if the child wants to buy a car. But it is quite possible to support the idea of accumulating a decent amount in order to form an investment portfolio, open an individual investment account and thereby provide yourself with a paid education in the future.
An important rule: in no case should you be deprived of pocket money for poor studies, for offense or an unfulfilled assignment. The income to the personal budget of the child must be stable and regular, otherwise he will not be able to plan expenses and will perceive the amounts as one-off. That way he won't learn anything.
Game Refusal Award
Mother of five children Natalia Abasheva:
“My husband and I believe that children need knowledge about money. They must have an understanding of where they come from, how best to dispose of them, so that they know that there is nothing to get for free, that they need to be treated with care.
Our children, even at preschool age, began to receive money from us and to buy something on them on their own. They realize that there will be no such thing that you can constantly eat candy, and they appear by themselves. To always have sweets, you need to make money on them.
We give money to children for doing housework. But it is important to agree correctly so that it does not work out that the child does not lift a finger for free. Ours have household chores that they do just because they have to. And sometimes we announce: "Today, the award will be given to the one who helps to put things in order in the garage." A child who takes up this business will have to give up walking or playing. But he will receive monetary encouragement and understand that it is worth sacrificing entertainment for this. But he will spend the cash bonus as he sees fit. Sometimes they buy, let's say, unhealthy food, which in everyday life we basically refuse them."
Capital is multiplied at the age of 14
Stanislav Kuznetsov, specialist of the analytics group of the investment company "Vitus":
“Money must not only be used competently, but also capital must be increased. In our economically turbulent time, there are parents who are preparing a financial "safety cushion" for their children, which can be a good help for their future, but for this it needs to be properly managed. Now you will not surprise anyone with a savings account, the funds of which a child can use when they reach a certain age. Quite another is a share in a business or shares of an enterprise, which require a more qualified approach to capital management.
We have very few young clients. The youngest applied at the age of 14. But practice shows that they are quite successful in coping, strive to competently approach financial management. True, the knowledge of the intricacies of the stock market is a laborious process that requires knowledge in various professional fields. No matter how smart and sensible young clients are, they simply did not have time to acquire the necessary knowledge for asset management. Therefore, they resort to the help of professional investment consultants who help to choose the right product, suggest which companies' shares will bring profit, etc. In practice, parents or other legal representatives always act as legal representatives of a child in managing capital."
Electronic instead of paper
Director of school 108 in Perm Elena Zvegintseva:
“Not all schoolchildren know how to spend money correctly. When parents give money for meals, children are often tempted to spend it on their small purchases and unhealthy goodies. It happens that teachers notice a student's discomfort, and then the doctor finds out that the child has not eaten anything all day. At the same time, the amount given by the parents for lunch has already been spent on unimportant and unnecessary things.
If parents have not yet been able to explain to the child that health is more important than sweets, chips or a pretty pen, they should think about monitoring the child's nutrition at school. Such opportunities are provided by the student's electronic card. With its help, the problem of malnutrition can be completely solved. According to the school card, you can dine not only according to the general menu with the class. You can additionally purchase other dishes and pastries.
So, an electronic card helps to remove several problems at once. Parents can give children any amount, taking into account their child's appetite, setting a limit of 100-200 rubles. per day (there will be enough of them). The school will get rid of the problem of collecting cash. Well, the children themselves will eat right, and not waste "targeted" funds on unhealthy food."
Liana Shaikh, head of the Big Charity Festival project:
“Children should be taught from childhood to share with those in need, to prepare for charitable activities. But the question is: how to do it? The most important thing here is to set the direction for the child's actions, but exclude extremes. If a child deprives himself and his parents by taking the last out of the house for people in need, then this is definitely an undesirable extreme. With such an attitude to charity, if he gets used to depriving himself, it will be difficult for him in adulthood.
Charity is a feeling of compassion. It is important for a child to tell, to show that life is different, and if you can help, then do not pass by. And of course, he should not help someone with money, because he himself does not earn money yet. He can help others as a volunteer.
I have always involved my children in volunteering. I see that they are pleased, they invite friends and are very happy when they were able to help. When they see the result, they understand that their work is also invested in a big common cause.
Today my eldest son is already an adult. I know that he periodically transfers funds himself to those who need help. He earns, and this is his decision. As a mother, I did the main thing, put the right grain into it. As the great Chaplin said, every third franc belongs to someone who can be saved by it.
Children sometimes hold charity events, do something with their own hands from inexpensive materials to sell, and donate money to charity. I am very careful about the sale of something by children, even made by their own hands. When an exhibition stand is arranged, where everyone who comes can conditionally buy a souvenir, the buyer does not give the money to the volunteer, but he himself puts it into a cube for contributions. The role of a child volunteer should only be to inform, tell about the event, about the purpose of the collection. It's enough .
Master classes and online courses
Nadezhda Bosenko, consultant of the General Education Department of the Ministry of Education and Science of the Perm Territory:
“Every year in the schools, classes are held for children to improve financial literacy every fall. Events take place in different forms. These are not only lessons, but also lectures, trainings and master classes. Children are taught about financial security, budget allocation, income, expenses and other wisdom. Classes are conducted by finance experts, bank employees, teachers of Perm State National Research University. In addition, financial literacy lessons are conducted by teachers themselves, who undergo additional training in this area.
For those guys who have already decided to associate their profession with finance, there is an opportunity to gain deeper knowledge through online courses. From September 18 to December 15, the autumn session of this project takes place, where teachers of Russian universities tell about finance to children in grades 6-11.
In addition, every year our schoolchildren participate in the All-Russian Olympiad in the financial market and the basics of consumer knowledge for high school students. In March 2017, in Moscow, 10 out of 28 awards were won by our guys."