Jenius' Strategy To Raise Children To Smartly Manage Money, Can Start At The Age Of 4

Talking about money is not easy. Especially if you talk about it with your children, it can certainly be more challenging. Starting from distributing daily pocket money to paying tuition fees, all topics related to money require serious discussions.

But remember. Whatever the child's age, either 4 or 24 years, there is no term too early or too late in helping build trust and encouraging children to be responsible in terms of finance. With the right teaching, you as a parent can certainly raise children who are smart in managing money.

The habit of managing money has been formed since children aged 5 years, according to research from the University of Michigan, driven by Real Simple, Friday, July 28. But Mother's Father should not panic. Teaching children financial skills is the same as teaching him to learn to tie a rope or hold a spoon. The key is training.

Get rid of taboo thinking about talking about money in early childhood. Share the excitement about the bargaining process or the fact that you have enough savings for the holidays. Use words like storing and sharing when introducing money to children 4-7 years old.

You can also involve your child when going shopping. Introduce the price of goods, show value, and teach him to make a buying decision. Ask the child to take one item, give him cash, then ask him to pay for it. From here, you are teaching children the responsibility to pay.

Next, open a savings account. Choosing a special bank can build the spirit of saving. Saving is fun for children and parents to do must encourage it. If the amount of savings is large, invite the child to the bank to save money.

Children of this age can start making money. They will start developing their personalities related to money and even at this age. You will recognize wasteful children who like to save.

Give children an understanding of expenses. Discuss whether spending all the money on chocolate, for example, is a good thing? You can also start teaching the concept of desire versus need.

In addition, at this age you can also introduce the meaning of'share'. Let him choose a charity organization and the amount to be donated to the organization every month or every year.

At this stage, it is time to start involving children in a family financial situation, especially if they are getting closer to college. There are several budget applications, savings, and investments that allow children to clearly see where their money is spent.

Alternatively, ask your child to budget for money by recording every rupiah spent during a certain period of time. Then evaluate together so that he knows his expenses.

Then, invite the child to discuss the complicated financial situation and how to handle it. Although there is no right answer, sharing your thoughts is much better to prepare your child for difficult situations.

Also introduce children to invest. Consider a site like Yahoo Finance, which allows you to create a fake investment portfolio. Help your child choose multiple stocks and pay attention to tickers up and down. He will see how stocks perform over time and begin to understand the basics and volatility of the market. Encourage him to think about investing as part of the savings.