It is said that an adult's education is represented by the foundation of the 7 years at home. The same goes for financial education, whose early foundations help later adults learn and apply practical and fairways of managing money. In this sense, a parent's explanation of money and its workings is essential to a child's later financial independence.
And how to talk to your child about money, from the first years of life, explains Ana Niculăeș, psychologist of the "Respiro" project in the maib edu project.
How do you talk about money with a preschooler?
When talking about money with a preschooler, it is important to use simple examples and concrete experiences that they can understand. Learning about finances and managing them can be a fun and educational adventure for little ones. Here's what we can relate to:
Money is for shopping: Tell your child that money is used to buy things we want or need.
Saving: Tell her that people put money aside to buy more expensive things in the future, like new toys or other things they want.
Work and money: Explain that adults go to work to earn money. This money is then used to buy things and live.
The difference between needs and wishes: Show them that there are things we need to live, like food and clothes, and things we want, like toys. Help them understand that we must choose carefully how we spend our money.
Paying for things: Using toys or pictures, show them how paying for things works. It can be as simple as giving them toy money and letting them buy something with it.
Toy shop: Play "toy shop" at home, where your child can buy or sell toys using toy money or tokens.
Counting games: Use simple counting games with tokens or coins to help your child understand the basic concepts of numbers and their value.
Using savings: If your child is saving money for toys or other things, help them understand that they must wait and save enough money before buying.
Share: Teach them to share money or toys with other children. This can help them understand the concept of sharing and the value of generosity.
Lessons in responsible consumption: Teach them about the importance of keeping toys and clothes in good condition so they can use them longer.
Simple stories: Create simple stories where characters learn about spending, saving and giving.
On how to talk to a 7-18-year-old about money, we'll come back in the next maib blog post.
