In the new academic year, the educational process in Russian schools has changed; 10-11. Financial literacy education has become mandatory for students in grades. Separate elements of the course were included in topics such as algebra, the beginnings of mathematical analysis, computer science and social studies.
A year ago, the basics of financial literacy were included in educational programs for students from first through ninth grades. They are studied within the framework of the surrounding world, geography and the same natural sciences. It turns out that the responsibility for raising a financially literate population is officially assigned to schools and teachers. However, this does not mean that the family and parents should not be involved in this process.
Until recently, people acquired systemic knowledge about financial markets, family budgets, and saving and spending processes mostly on their own, through trial and error, or as part of private courses at university. But financial literacy is the key to future prosperity. The sooner the child begins to understand what money is, what tools there are, what loans and mortgages are, what sources of income there are, the more successful he will be in this regard.
As a recent survey showed, only 47% of adult residents of Russian cities consider themselves financially literate, and 39% want to improve their level of knowledge in this area in general. Two-thirds of Russians do not understand investment, insurance and retirement products, cannot read financial documents, 58% cannot detect a fraudster and manage their budget wisely, and almost half cannot save a large amount. Children have a chance to surpass their parents in this regard.
The child begins to understand what money is from the age of 3-4. And from this age you need to talk to him about this topic – tell him where the money in the family comes from, who earns it and how, what are the sources of passive income, what are they spent on or where are they invested?
Gradually, you can trust your child to choose products in the store, but strictly for a certain amount. This way he will learn to stay within budget. Over time, the child may be entrusted with planning expenses, for example, payment of housing and communal services, purchase of clothes or car repair. Show by example that you can not only spend, but also save. This was something that, until recently, was not taught in school and was not taught in practice.
Your child already has his or her own money when school starts and you can give him or her a child debit card. Including small expenses, school lunches, public transportation, etc. It is convenient to use it to pay.
Another tool is the piggy bank. This is good. But the main thing here is to instill in the child the idea that it is not at all necessary to spend everything at once. You can postpone it so that you can buy something big and sturdy later. Closer to high school, you can already understand how banks work, how this system works in general.
If you have a smartphone, it would be beneficial to install the banking application. As a rule, it offers functions for opening a savings account; You can try different options, such as transferring balance from purchases. Thus it will become clear that small amounts can add up to a very significant amount over time, which is even enough for a good thing.
Adverbs have a great method. When a young financier opens several such piggy banks at once – in one he has money for daily expenses, in the other he has monthly expenses, and in the third he has money for a dream. If parents implement periodic renewal of the card, the child must decide for himself what is more important for him.
High school is a period where children can earn money on their own, open their own cards and try themselves in the investment market. Making money on your own will teach you to respect money.
Good practical money handling skills can be learned through play. Classic “Monopoly” can not only occupy family evenings, but also introduce the basics of financial literacy. If you remember, you need to count funds, buy assets, invest in their development and get even more.
There is a Russian alternative to the game – “Road to Success”. Players receive an education and then start working and earning money for household items and utilities. Other options: “Millionaire”, “Cash Flow”, “Ekonomicus” etc.
You can and should talk to your kids about money. The world of finance can be very interesting and exciting even for parents. It is important that the immersion is gradual, but at the same time constant. Thus, school lessons are complemented by personal examples of loved ones and experiences gained in the family. Only then will it be possible to raise a competent and successful person.