Parenting Tips: Importance of teaching Financial Literacy to Kids

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Do you think you should teach your kids about the financial literacy and it’s important? Is it okay to make them aware about money and finances? Do you consider financial literacy as an important thing to be taught in kids? Do you think it has an impact to their future? Does teaching about financial literacy can help them to become successful in their financial life and future? Do you agree in teaching kids about financial literacy? Are you willing to join your kids on different program that will help them to understand financial literacy? If you can’t still decide about it, you can read this article to further understand what is financial literacy and its importance especially to your lovely kids.

Did you also experienced the hardship in managing your money? Being unaware on financial terms? And can’t even understand the basics of budgeting? I know you also experienced those things and struggling with your finances and financial life. That is the reason why we should consider teaching financial literacy to kids. It don’t need to be deeper and expanded because we can teach them the basics of finances that will help them to become aware about money. Money is one of the big thing we must be aware at the young age since we can have the first day we are born. Being aware on finances and even money can help us to be knowledgeable in managing our money in the future. Also, to avoid negative or bad things that might happen to us in our financial life in the future. Just like how the world changing every time, kids should be allowed to be taught about financial literacy. Financial Literacy will expand their knowledge about the simple but deeper thinking and ideas about finances and money. This program is promoted and advisable from different experts and professionals because they think this will be helpful for every kids and will surely contribute to the society and even country’s economic growth. Financial Literacy will taught the kids to become financially literate and be able to have financial skills that will help them to manage their money, make a better decision no matter how big or small it is, and to secure their financial life and financial success in the future. If they are able to become financially literate, it can benefit them to have a privilege in self-sufficiency and to achieve financial stability. There is nothing wrong in telling or teaching kids about financial literacy at the young age since they can use it to prepare for the financial problems or challenges that they can use to secure their financial success in the future. We can consider it as an aspect in life that kids should know and be aware of it. I know it will be hard to teach our kids about financial literacy even we tell them that it is essential for their life. When they become teenagers, they will have an eagerness to earn money to provide for themselves. And that will be hard for them if they are not aware on the finances and money terms. Well, financial literacy does not mean that we only teach them about money issues or problems because we will also guide them on how to budget, save money, spending wisely, and invest. But since it is not easy for us to teach and guide our kids, we can follow different techniques or points on how to teach financial literacy on our kids.

According to the site of bright champs, there are 5 steps to teach our kids at home. Step 1, Earning. This is the first step we should teach our kids, how to earn money or how people earn money. We can do it by giving those tasks that will show them on how to earn money. An example of this is giving them task with the exchange of money. With that, they will think that they need to work first before they can earn money and this will not be easy. Step 2, budgeting. Maybe you think that you need to teach your kids on how to spend money but that is not important because they can learn that even you don’t teach them. The thing about spending that will surely give them a problem is how to budget the money wisely and avoid being in debt. Teaching them about budgeting will surely help them to discipline and manage their money properly. Step 3, saving. In budgeting, we should teach our kids about saving the portions of our money. It is to make sure that we can still provide for ourselves in the future. Step 4, investing. This will be the hardest topic that we will teach to our kids. Because they only have a simple or basic understanding about money and finances. But it does not mean that we will just skip this lesson, we just need to expand our knowledge about financial literacy. An example of this is giving them tasks that they can use to earn money, then after they earn money, teach them how to invest it. So that, they will be knowledgeable in managing their money. Step 5, spending. This will be the last lesson that you are going to teach your kids. Well, it is the easiest lesson to them since obviously they will have a common understanding about spending but this is the most important thing to learn, they must learn how to spend money wisely, it is to avoid being in debt and having financial problems.

According to the site of Financial Express, there are 4 points that will help our kids to understand money management. First, talk about money directly. You should tell them how hard it is to earn money. The reason why they should know to manage their money and expenses. Make them know the importance of money in their life. It is to make them think about being better in managing their money. Second, help them understand bills and purchase receipts. You can teach your kids on how to determine their needs and wants. You can also teach them how money works by showing them how to use credit/debit cards and cash when buying. Third, make them understand the importance of saving money. Help your kids to understand the importance of saving money by making them aware on the basics management of money. Fourth, help them understand that money is earned. It is important to make them aware on the hardship in earning money. That they need to work hard just to earn money. There is none easy way of earning money, you must work for it. It is to make them know that earning money is not easy especially when you need to provide not just for yourself but also for your family. Being financially literate will be a big help for everyone especially when starting at the young age.

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