In recent years, from Finances for Mortals, we seek to improve and increase interest in personal finances, trying to instill in our followers an optimal financial culture, since we consider it very important for the education of children and young people who, from childhood.
They must be clear about the role that money plays in our society and in our lives and there are many ways to know that like free quiz questions and many more, in this article, we will tell you complete details.
What is the financial culture?
We believe that financial culture is the ability to understand how our money works in general terms, how we obtain and generate it, how we manage and administer it, how we can save it or make it more profitable. ?
In general, financial culture refers to the set of skills and knowledge that allow an individual to make decisions about their financial resources.
On the finance for everyone website they tell us this; Financial culture is the domain of daily skills, knowledge, and practices necessary to make informed financial decisions in a sensible way throughout life.
It is closely linked to financial education, which refers to the teaching of these skills, practices and knowledge with which to better face basic financial challenges.
When is it important to acquire a good financial culture?
The financial literacy is important regardless of whether the segment of age, education or income level, every citizen needs to know how to manage your personal finances.
Throughout life we will have to make numerous decisions related to the economy, such as buying a car, a home, paying for a child’s education or allocating part of the savings for retirement, it is therefore very important knowing how to prioritize different needs, establishing basic objectives and having clear means to achieve them.
7 Keys to teaching financial culture to the little ones
The 7 tips that will help parents to promote a financial culture in their children in a simple way.
- Don’t treat money as a taboo subject. It is important that from the beginning children know the value of money, that is, the hard work that parents do to earn money and meet their daily needs.
- Give them your weekly pay. Assigning their pay will make the little ones quickly know the value of money and how to manage it. In this way, they will begin to differentiate between needs and wants as well as prioritize them.
- Instill savings. Through managing their payments, the little ones must manage their savings in order to buy what they want so much. For example, the purchase of a new video game that will be released in July. Parents need to be the ones to help them plan their savings the first few times so they can learn the mechanics of saving and planning.
- Motivate and reward effort. It would be advisable for children to be rewarded for getting good grades in school or for helping with certain household chores. In this simple way, they will discover that money is only obtained if you work hard to get it.
- Hold them accountable for their decisions. If we let the children spend all their savings and give them more money, they will never learn the value of it, neither from savings nor from planning.
- Set an example. Children copy everything and not always the habits we would like. In order for our children to use their pay correctly, it is necessary for parents to do the same with their income and plan their fortnight appropriately.
- Be on time with your weekly pay. It is important that the child receives the income the same day so that he learns to administer himself correctly. Use that time of day to ask him what he is going to use that money for, whether he is saving for something or if he needs help planning or is curious about a financial issue.