According to research, many financial habits are formed by the age of seven. If good habits are not introduced to them or established early, it will be more challenging to guide our children in the proper direction. Based on my own experience growing up, it was difficult for me to adjust to 'adulting,' simply because I had poor money management back then. I used to see myself shopping online too often and would use such kind of life because I used to reason that it was a form of stress therapy. It took a while for me to set the records straight and learn how to save for the 'rainy days.'
But as parents, we need to start educating our children about money matters in order for them to avoid the same mistakes we've had. I don't want my nephew and nieces to find themselves one-day missing rent payments or running up too much credit card debt because they were too careless. So, here I've made some tips to help guide the kids about financial literacy the fun and easy way:
Make them work for their money.
Children will learn to utilize money more responsibly if they have to work for it. Many parents give their kids an allowance each week to pay for chores. Giving a child an allowance can also aid with budgeting lessons.
Allow part-time gigs
I allow my nephew Kyle to attend his band's gigs. He is currently the lead guitarist for the upcoming artist, Mizael. Provided that he will not neglect his studies. His studies should always be a priority. No ifs and buts about it. Aside from that being his passion, sometimes he would get singing gigs and he'd be paid for it. So it could be as simple as mowing the lawn of a neighbor or walking someone's dogs to the park--as long as they'd be able to earn money out of their own hard work, it's a good start.
Contribute to Purchases
If my nephew Kyle wanted to get something, I always see that he pays a portion of it. Every parent has probably experienced the pressure of constantly fielding requests for different video games or gadgets. Particularly younger children need to understand that you can only spend a certain amount on discretionary items purchased each month. Children will gain a better understanding of what goods cost if they are encouraged to pay half the price for a brand-new Lego set or a Barbie Doll accessory.
Encourage them to play online games that teach them the value of money
There are lots of free online money games for children that somehow give them at least a gist or understanding of how to be responsible with money. One website I've tried with Kyle is called mortgagecalculator.org/money-games. The site itself has a plethora of game choices and for sure, there'll be something you'd be interested in or at least catch your fancy. From simulation games to role-playing, adventure games among many others. Each game has its own characteristics or underlying objectives. And with different game categories and genres, they can also be classified according to the players' age.
Do you like to solve puzzles or micro-manage resources? Real-time strategy or role-playing games might be better suited for you. But no matter what your interest is, there is definitely a game genre that will appeal to your taste from the said website.
Play Pizza Maker
In the restaurant simulation game Pizza Cafe, you have to rapidly deliver the precise pizza that each customer ordered. To find out what kind of pizza each client wants, you have to look at the thought bubble over them. Place the cheese, sauce, and any other ingredients required to finish the pizza on the crust. Once all the ingredients are on the pizza, pick it up to cook it once more before putting it on the conveyor belt.
Before the clientele loses patience, serve them. Beginning at the conveyor belt's left end, the pizza travels right. The first person to match it exactly will get it. If you wish to serve a customer further to the right without going behind them, you can grab the plate the pizza is on.
Very young children, they can play Treze Coins. In the easy money addition game Treze Coins, kids add up their coins to put them in a gumball machine.
Based on the national flags of the various countries, which are commonly linked to well-known languages, choose the language you want to play in. English, Spanish, Italian, Portuguese, and French are available options. Choose the coin denominations you want to use. You have two choices: 1 and 1 and 10 or 1 and 5 and 10. Click on coins from the bottom area to insert coins that total the amount displayed in the top center of the screen. Click on the gumball machine to insert the coins once you have calculated the precise number of coins. You can click if you make a mistake. If you need to make a change, there's a coin converter too and you can keep buying gumballs until you run out of money.
Using this kind of game, it's a lot easier to teach young kids addition. It's as simple as buying gumballs and inserting the coins required to buy a gumball from a machine. If a child makes a mistake, it will tell you that you are paying too many coins or you lack coins.
Play LEGO City
In LEGO City Adventures Build and Protect, players work with Mayor Solomon Fleck to erect a variety of structures that generate tax revenue that can be used to finish the rest of the city. Construct the systems required to turn your city into a bustling metropolis.
Look for buried mini-pieces that can be combined to create the various building kinds that are available in each zone. Taxes should be collected from each building to pay for construction and new homes.
You must have enough LEGO studs saved up for each structure in order to purchase it and the necessary mini pieces. By placing 25 buildings in each of the city's six zones, you can unlock each one.
Each zone has its own construction kinds and LEGO components, as well as its own earning schedules. Ensure each zone has at least one police officer and fire department so you can protect the citizens. Put out fires and stop burglaries to earn extra rewards.
My nephew likes Lego a lot. It gives him a sense of creativity and imagination. So this one's a good exercise for his brain and his creative juices as well. Similar to SimCity or Roblox, this is probably the most popular construction and management simulation of all time. The game simulates the building and management of a city, including street planning, zoning, and taxing city residents.
With all these genres, your video gaming options are plentiful. They all make teaching kids about financial literacy and open their eyes to how it is in the real world.
Open a bank account
For younger children, the piggy bank serves as a means of saving money; however, once they enter primary school, you might want to open a kids' account with a bank. It serves as both an introduction to the financial sector and a means of instilling the value of progressively increasing their balance.
Knowing how to invest properly in stocks and bonds and picking up some of those skills before beginning their first full-time work are two factors that contribute to long-term financial health. You can read Raising Filipino Boys by Rose Fausto who taught her own kids early in life how to invest their money properly. As kids, her kids are stockholders of the Filipino food chain giant, Jollibee. You can also read up and try Bo Sanchez's books, Truly Rich Club.
Have Honest Conversations About Money
About your family's finances, be forthright and honest. In particular, when facing a job loss or other family issues, parents frequently feel that being too open will simply cause stress. If your kids know how to react, they will be better able to deal with their problems. Discuss about sticking to your spending plan and reducing non-essentials when circumstances are tough.
Kids can develop the independence they'll need later in life by earning their allowance through domestic duties.
Establishing a savings account or kid-friendly debit card introduces children to the banking system and the importance of saving.
Having your children listen in on financial discussions helps teach them how to make responsible purchases.
I honestly think that introducing your kids to financial literacy will certainly help your kids to perfectly grasp the concept of saving, the difference between needs and wants, how to budget their own allowance, how to validate real money from fake ones as well as other educational trivia about money. And I can assure you that the kids will be having lots of fun while learning all these things.
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