Teaching your child financial discipline is just like any other discipline. that should be cultivated from a young age. Many people may wonder if money is difficult to understand. Will the child know about it or not? Introducing 6 basic finance lessons suitable for young children that parents can teach them.

1) differentiate between need and want

Teaching children the difference between the concepts of “needs” and “want” It is an important skill that will lay the foundation for good financial discipline. “Necessary” means having to have it for life. "Wanting" is good, but if you don't have it, you can live. Teaching children to prioritize the values ​​of things Starting from what he sees in everyday life such as food, drinking water, house, chocolate, ice cream, skateboarding, etc. It is the first step that children will learn to prioritize spending money on what is needed.

2)  Money doesn't just come out of the machine. And there is no magic card that can conjure things

Seeing money flowing out of an ATM or using a card for a parent to buy something. Children may not realize that money is limited. Parents must explain to their children that money that comes from work which we keep in the bank will be withdrawn when required. And the use of credit cards for purchases had to pay back at the end of the month.

3)  Learn about budgeting

The best way for children to learn is to give them the opportunity to manage their own money. If he gets the money and buys all the little snacks, he doesn't share it for savings. He wouldn't have the money to buy the big toys he wanted. These experiences will teach him the consequences of spending money without planning.

4) Slowly gaining more valuable things

Training children to wait patiently (delayed gratification) will help build immunity against "buy first, pay later" promotions. That is the cause of credit card debt. And what is equally important is to stop buying impulse at the point of sale. Before going out to buy let the family set up a budget to pay. Make a shopping list, estimate the price of each item. Compare prices online and use of discount coupons. This will instill in your child the knowledge of worthwhile shopping and getting used to planning before going shopping.

5) Look at the ad and think accordingly

Advertising media influence people's thoughts. Especially in this era where products are advertised in all media channels with a variety of styles. Parents should also explain how advertisements motivate people to buy things for their children. which tries to encourage children to ask questions about what the media advertises It will help build immunity to the attractiveness of the product in the advertisement. This includes ignorantly believing the persuasive message of the advertisement.

6)  Sharing

Training children to share a portion of the money. Teach children that their money can be used to improve the lives of others instead of just shopping. sharing to help others doesn't have to be a lot. Just a little money from many people can make a change.

Interested in saving money to earn more returns. Saving with SCB Long Term Deposit Account. Maximize your savings and by using automatic debits from your payroll to force yourself to save consistently to keep your savings growing. Open an online account through the SCB EASY app.

References

https://www.asb.co.nz/blog/2015/06/teaching-kids-the-difference-between-needs-and-wants.html
https://www.parents.com/kids/responsibility/money-management/lessons-teach-kids-about-money/