Financial intelligence is a fundamental part of having a balanced life, because it is no secret to anyone that personal finances are important for living in a calm and worry-free way.
To educate your children about personal finances from an early age is to go 3 steps ahead of others, since by teaching them how to manage their money and ordering their finances you are guaranteeing success in an important part of their adult life: the administration of their economy.
Therefore, we want to teach you how from 5 questions you can prepare the ground to teach your children everything they need to know about financial intelligence, control of their personal finances and assertive decisions. Take careful note of the following questions and start putting them into practice:
1- Where does what I have come from?
Making your children understand that everything around them comes from your hard work is the starting point for them to understand that everything has a reason and that the toys and gifts you give them are not acquired by magic.
Inculcating to them from small the love to work means to turn them into men and women who will fight for what they need, and want, that they will take safe paths and that they will always have you as an example in each of their steps.
2- Do I have to choose?
Don’t leave things easy, teach them to make decisions! In cases as simple as the choice between 2 toys, make him choose only one of these and make him understand that your pocket does not support the payment of two toys and that for the sake of it, you must make the best decision.
This type of exercise will serve two things: the first is that it will give them security, making decisions generates fears and fears, but if you prepare them from children, you will know how to choose between what is a priority and what you can expect. The second, you will understand your situation and will make in the long term understand that making bad decisions will be reflected in your POCKETS.
3- How much can I spend?
Give them money on a weekly or monthly basis, depending on your abilities, and tell them that of that amount they can only spend a percentage – which you will define yourself – and that the rest should be used to save, so you will give them two great lessons.
The first is the importance of controlling your purchases and knowing what to spend money on, and the second, the importance of saving within the control of finances and money management, seeing this as your own reward generated by the good administration of your economy.
4- Saving to be well?
Yes, saving is definitely part of the discipline of money management. When you teach them to save your children (Read: How to teach to save your children?) You teach them the importance of waiting to get something, you sow patience and self-control.
Do you know why it is important to do it while they are small? Simple! because when you are an adult you always have an excuse for saving, however if you teach it as a child, it becomes a habit and not an obligation.
5- How do I learn to buy?
Buying intelligently is one of the challenges to which you will be exposed all your life, so, you must teach your children from a young age that it is a priority and what are cravings or tastes for now. Doing so will help you make rational and non-emotional decisions with money.
Put it in complicated situations where you should choose, imagine games where you should buy and monitor it in order that in the end, you make a feedback saying what aspects could be improved.
As part of this process, it is also important that you teach your child the importance of knowing at what time he needs help and make him understand that credits are not a wolf to be feared, but an aid that can get them out of trouble.