Children learn personal financial management as soon as possible using smart money, the future will not be confused because of a lack of money.
Children learn personal financial management as soon as possible using smart money, the future will not be confused because of lack of money.
Today, the ability to manage personal finances is increasingly effective in life. Studies have shown that the concept of money, managing one’s finances is formed from an early age. Therefore, parents should cultivate their children to form good money concepts and financial management methods from an early age.
Take a look at how Japanese families educate their children about financial management.
Know the coin’s denomination
Teaching children how to recognize money is the first and most important step in teaching children how to manage their finances. To teach their children to recognize coin denominations, Japanese mothers prepare banknotes and coins of various denominations, tell about the origin of money and teach them to distinguish denominations by sizes and colors. different colors. In addition, they also prepared some fun games to help children memorize the denominations of money.
Let the child learn how to pay when shopping
After recognizing the denominations of money, Japanese mothers teach their children how to spend money. When the family needs to buy daily necessities like salt and soy sauce, the mother can give money to the children and ask them to pay. Give children many opportunities to pay for themselves in life, so that children can deeply understand and remember the use of money in practice.
Learn how to accumulate and save
According to the Japanese, you should regularly give your child an allowance for a certain period of time. In addition, parents can also prepare a piggy bank for children and encourage them to put some pocket money in the piggy bank. After a while, children will form a habit of accumulating and saving money for a certain goal, even if it is just childish goals such as buying toys, clothes, etc.
Teach your children how to record expenses
According to the Japanese, keeping a record of spending is useful for developing financial habits and it also allows parents to understand their children’s spending. Parents can prepare children a financial notebook to record income and expenditure, so that children form good financial management habits from an early age, while learning how to calculate and manage money themselves. .
After children learn to record books proficiently, parents can also let children participate in financial management and daily consumption plans of the family, together with parents record the family’s income and expenditure and regularly evaluate the results. financial plan performance.
Set up your own savings account at an early age
With the first foundation in saving is the piggy bank, children will easily understand the meaning of banking. At this point, you can teach your child about banking to enlighten investing.
Japanese parents teach their children what to do with the money in the bank, so that the child has a preliminary understanding of the bank. They also set up a separate account for the child, allowing the child to transfer money from the piggy bank to a bank card. Teach children about the role of different savings, insurance and wealth management products, to raise children’s awareness of investing and managing wealth.
The Japanese way of educating children about financial management is very simple but extremely effective. We can apply it in conjunction with the actual situation of our own family, so that children can be exposed to money and learn to spend money from an early age. Cultivating the right financial management concepts and values will enrich children’s knowledge and skills!