Financial upbringing of children

Goncharov Andrey

Form 3 «V»

Gymnasium № 1

Financial upbringing of children

   It is necessary to teach a child right attitude towards money at an early age. If the child does not learn how to handle money, then in future it can lead to the wrong managing of money they have already earned. A child has to grow up a man who is able to create sources of income and control their spendings and be competent enough to use banking services and manage personal finances.

Financial Literacy - this is the science, which is not taught in school. Thats why, financial education fully lies on the shoulders of our parents.

     The child should begin receiving financial education at the age of 4. Most children to the question "where does the money come" answer simply - from an ATM. It is necessary to explain to the child why Mom and Dad go to work, and the money appears from an ATM.

     Many parents dont want to take kids with them to the store, because they will start to act up and demand to buy something. But the kid should be taken along and taught how to buy. It is necessary to compile a list with a child beforehand, to discuss the amount of money to be spent on the purchase and agree that if you have money left, kid can buy what he wants.

     You can not buy everything the child asks. From such a child can grow up a man, badly abusing credit, because he needs all he wants. Such a person is not long chance to get into the financial hole.

    Since school-age, child can be given pocket money. If you do not give your child pocket money, he will feel disadvantaged in comparison with other children, and will develop an inferiority complex

     If  child has spent all the money ahead of time, in no case do not give more. As a child then learns how to plan the spending.

     No need to pay for performing household chores and doing well at school. In a normal family, each member tends to contribute to family well-being, and does this not for money but out of love and a desire to help his family. A good performance - a contribution to the future of the child. Its a must to study better now to earn more money later - now that should be a motivation.

     You can not forbid the child to earn money on their own. Starting to earn, the child will understand where the money comes from, and learn to appreciate it.

Financial literacy of children - is a necessary quality that will be a key to financial success in adult life.