How do you teach your kids to manage their money well?

In Spain, talking about money is still taboo with family, friends and colleagues alike, due to ignorance or insecurity, we avoid conversation topics about our finances. But money is something that is in our daily lives and having a good financial culture will help us face different situations that may arise in our lives. For this, it is essential to start talking about money naturally, starting with our children at home.

Why is it important to educate children about finance?

Sometimes we avoid talking about money in front of our children, but normalizing it will help them lay the foundation for a good financial education. Experts say that from the age of 5 or 6, they can understand some basic concepts and we can help them learn the value of money.

If we were to teach them because they were small, distinguish between necessity and whims, we will lay the foundations for them to be smart and responsible consumers in the future. But how do we get it? Children naturally want something if they want it impulsively, but with rules and limits we can make whims more considerate.

To do this, they must learn to possess. conscious consumption. We can do this with some tricks, such as letting our kids manage small amounts to include them in making their shopping list or encouraging them to save so they know what their priorities are, and knowing they can do it if they want something. they will collect the money they receive. Or we can open a savings account at the bank so they can learn to save money for the future.

Like it or not, money plays a fundamental role in our lives and can cause stress when we don’t have it and peace of mind when we get it. It is therefore important to teach them what money is and what it is used for, as well as to know all the elements that interfere with money’s environment, such as banks or insurance.

payment as a tool

After a certain age, many parents decide to give their children pocket money as a practical way. learn to manage your money. It is important that the payment is not associated with doing basic household chores that are the responsibility of everyone living in the home. But many parents wonder, when and how much?

It depends, we can start giving when we think our kids are ready, and the amount will depend on what we think they can afford and the age of the kids. One piece of advice, give them as much as they can save some money so we can infuse them. savings culture because they are small.

child savings account

Often our children receive money as a gift because they are small and it is not suitable for them to handle large sums. To do this, it is recommended to open a children’s savings account. In this way, we will encourage our children to save for the future.

But is it necessary to have large sums of money sitting in the bank? The answer is no, we can invest and get high returns. Our children’s investments will be long-term, which means they will have less chance of losing money. Inside Fundación MAPFRE blog, Insurance and Pensions for AllYou can discover the best tips for your children’s investments.

Parents, your greatest example

In addition to the physical similarities that can be between a father and son, there are also gestures or ways of expressing themselves that help us recognize the relationship. And so, children learn by imitation, so in the end we are your greatest example. Therefore, having a good financial culture and managing our money efficiently will help our children learn through our behavior. We can’t teach our son not to be capricious if we’re the ones who consume without thinking. It is important that you lead by example from home.

Therefore, it is time we started talking about money at home and involving our children in everyday situations from an early age, such as shopping at the supermarket, organizing vacations or buying a car. money is a means to an end.

Fundación MAPFRE offers information and resources on saving and investing on its website. segurosypensionesparatodos.fundacionmapfre.org.