5 ways to develop your child's financial intelligence

Method 1: Help children establish a correct view of money

To teach children how to manage their finances, we need to help them establish a correct view of money and let them realize that money is indispensable and irreplaceable in life. However, we also need to let them realize that money is not omnipotent. This will prevent them from developing incorrect views of money such as materialism and profiteering. Parents should seize every opportunity in life to help their children understand how to manage finances and the benefits of financial management.

Mom took Chenchen to visit her friend's house. My friend has a child named Youyou who is about the same age as Chenchen. The two children started playing together. Youyou took out a pair of beautiful glasses and showed them to Chenchen. Chenchen took it, looked at it and said, "It's nothing. It's not as nice as mine." After that, he threw the glasses to Youyou, but Youyou didn't catch it, and the glasses fell to the ground and broke.

Youyou started crying, and his mother asked Chenchen to apologize quickly, but unexpectedly, Chenchen said, "Isn't it just a broken pair of glasses? Can't I just buy him another one? It doesn't cost much." His mother taught Chenchen, "That was a gift from Youyou's grandfather. It contains his grandfather's feelings, which can't be bought with money."

Under his mother's education, Chenchen understood that some things cannot be bought with money. He apologized to Youyou and used his pocket money to buy him a new pair.

When parents make their children aware of the importance of money, they should also let their children know that money is only a tool for us to realize our wishes and ideals, but having money does not mean we have all the good things. Therefore, we must view money correctly.

Parents should convey to their children the truth that "labor creates wealth" and let their children know that every penny is earned by their parents' hard work. If there is an opportunity, parents can take their children to visit their workplace. This will not only help children understand how money is made, but also enhance parent-child relationships. In addition, parents should correct their children's bad psychology and behavior, such as getting something for nothing, extravagance, not returning things they found, or even stealing, in order to cultivate their children's correct attitude towards wealth.

Perhaps there is a substantial connection between success and money, but having money does not mean that everything is successful. Parents should let their children know that money is not the only measure of success, to prevent their children from developing the wrong tendency of profiteering. Parents should tell their children that there is no end to money in this world, but family, friendship, and love are irreplaceable by money. At any time, do not give up feelings for money. At the same time, let children establish the concept of sharing with others.

Method 2: Teach your children to use their pocket money properly

It is important for children's lives to have appropriate pocket money given by parents. It can not only meet their reasonable consumption needs, but also provide the premise and possibility for them to learn to manage money. In the process of managing their pocket money, children will enhance their financial management concepts, develop independent abilities, and establish correct values.

Many parents complain that their children spend money recklessly and do not know how to save. In fact, this situation of children has a lot to do with whether parents give their children pocket money recklessly. Parents should give their children appropriate pocket money according to their age characteristics and receptive abilities, and control the amount. After giving their children pocket money, parents should trust their children and allow them the right to distribute it freely.

American oil tycoon Rockefeller was the first billionaire in the world to own a fortune of $1 billion, but he had strict management over the use of children's pocket money. He used the method of "pocket money income and expenditure record" to regulate the use of children's pocket money.

He had an account book with the rules for children's pocket money recorded on the title page: 30 cents per week for 7-8 years old; 1 dollar per week for 11-12 years old; and 3 dollars per week for those over 12 years old. He required each child to record the purpose of each expenditure in a notebook. After a month, he would check the child's accounts. If the accounts were clear and the purposes were proper, he would increase the amount of money for the child as a reward. Otherwise, he would deduct part of the child's pocket money.

He also encouraged his children to earn money by working to meet their needs.

Giving children pocket money regularly is extremely helpful in teaching them how to use money. When children have a certain amount of money, they will understand that once they spend it, they will never have it back. Therefore, they will think carefully before shopping, which invisibly trains children's sense of independence.

Parents should teach their children some financial management concepts. No matter how much pocket money they have, saving is the first principle. Parents should teach their children not to spend money that should not be spent, and prevent their children from developing a competitive mentality and bad consumption behavior. Parents should instill in their children the awareness of thrift and diligence, and promptly discover and correct any wasteful behavior that their children may exhibit.

In the early stages of children using pocket money, it is best for parents to prepare a notebook for their children to record their daily spending so that they can use money more effectively and develop good habits of prudent financial management.

Method 3: Let your children learn to save

Savings are an important aspect of financial management, and everyone in life cannot do without savings. Children do not initially understand the meaning of saving. Teaching them to save can effectively prevent them from spending money indiscriminately, thereby cultivating their thrifty qualities and correct views on money and values.

Parents should let their children know the importance of saving. The most important role of savings is to prepare for emergencies and to resist various potential economic risks in the future. When you encounter large expenses or various unexpected accidents, you can use your usual savings to deal with them.

Teaching children to save means letting them understand money and try to learn the concept of financial management in a happy and life-like way. At the same time, saving is also a virtue. Children will learn to accumulate and understand thrift in the process of saving.

Parents should first set a savings goal for their children, develop a simple savings plan, and then buy a piggy bank for their children. For younger children, holding a beautiful piggy bank in their hands will greatly increase their desire to save.

Parents can also apply for a bank card for their children and establish their children’s “small bank”. After applying for a bank card for your child, you can patiently guide your child to deposit his or her pocket money, New Year's money, etc. into the card, and not to touch the money in the card unless it is urgent.

Parents should teach their children basic knowledge of savings, such as savings principles, reporting lost items, interest calculation, etc. They should also explain to their children the types of savings, including current savings, fixed-term and flexible savings, lump-sum deposits and withdrawals, and zero-deposit and lump-sum withdrawals, etc. Then, based on the children's actual situation, choose a savings method that suits the children.

If a child develops the habit of saving, when one day he finds that he has saved a lot of money, he will be surprised and will continue the habit of saving.

Method 4: Let children learn to consume rationally

In the family, parents can provide children with opportunities to consume according to their age and ability, and let them gradually learn some simple consumption activities. This can not only satisfy children's consumption desires, but also allow children to master appropriate shopping skills and avoid children developing bad habits of spending money indiscriminately.

Before taking children shopping, it is best for parents to make a shopping list and let the children buy things by themselves. When your child is a little older, you should try to let him or her shop alone. When parents are guiding their children in consumption, they should tell them some shopping common sense, let them know what is good quality and low price, understand what is a discount, learn to "shop around" and bargain, learn how to distinguish the authenticity of goods, warn them not to "follow advertisements" and pay attention to the quality of the goods themselves, so that children can spend their money more reasonably.

Children often have unreasonable shopping requests, so parents should not satisfy them at will. You can divert the child's attention according to the situation, such as explaining the reason to the child or taking the child to the front to see if there are more suitable products. When children threaten their parents by crying, parents can give the cold shoulder. When teaching children to consume rationally, parents should consciously guide their children's excessive shopping complex to promote their financial management ability and healthy physical and mental development.

Method 5: Let your children enter the world of investment early

In today's society, investing has become a lifestyle and a way of survival for many people. It is a skill that should be mastered from childhood. Early investment education can preserve children's style of doing things, which is manifested in strong observation and judgment abilities.

Investing is an intellectual activity. Before truly teaching children how to invest, parents should let their children understand the basic characteristics of investment and simple investment principles and methods. Investment refers to an activity of giving up current available value to obtain greater value in the future. Common investment methods include: savings, bonds, stocks, funds, insurance, etc. However, investment is risky, and parents should guide their children to choose an investment method that suits them within their abilities and based on their interests.

During the process of children's investment, parents should correct their children's bad investment psychology, such as blindly following the trend and only caring about immediate interests. In addition, the investment world is ever-changing, and parents should let their children continuously learn investment knowledge. Only in this way can children better manage their own economic life.