How to make your child a responsible consumer

In a globalized world where there is an ever-increasing supply of toys, games, clothes and many other things, children quickly learn to say “I want to” and many parents give in to the temptation to give everything they can.

However, sometimes it is also necessary to say no. But how to explain to the little ones what money is and how it should be used? From what age should we give them an allowance or allowance, let them use an ATM card, instill savings habits or even explain more elaborate concepts such as investment? In this article, we give you all the tips to make your children responsible consumers.

In a globalized world where there is an ever-increasing supply of toys, games, clothes and many other things, children quickly learn to say “I want” and many parents give in to the temptation to give everything they can.

“Money doesn’t grow on trees” – this is probably a phrase used by many parents and educators to explain to their children that life is hard to earn. The problem is that, many times, financial education does not go beyond this. According to the 11th Annual Parents, Children and Money Survey cited by Forbes, at least half of parents say they have no opportunity to talk to their children about money, and a quarter say they are reluctant to do so.

In contrast, most children who responded to the same survey say they would like to learn more about the topic. The point is: when kids are curious, they will eventually learn one way or another. The question is whether parents want to have a role to play in their financial education or not. Have you thought about this? If you don’t know where to start, get inspired by these tips from Jayne A. Pearl, author of “Kids and Money: Giving Them the Savvy to Succeed Financially” ), in an interview with parents.com.

From 2 to 3 years old

If you show a young child several coins, he will probably choose the shiniest, smallest – and easiest to hold in his little hands – or, in some way, the one that catches his attention the most. In other words, the choice will not be based on the value of the coin, because, at this age, they may not understand this concept yet. However, you can create different games with your children that will help them to distinguish each of the coins and to know their names.

For example, make a game where the child, from a drawing or photograph, has to find the corresponding coin. It will identify it by color, shape, etc. Then name it (5 cents, 10 cents, 1 euro…). Another game that children of this age usually enjoy is to simulate that they are in a store serving customers. Even if they still don’t understand the pecuniary value, they begin to become familiar with the concept of trade. You can create your store with packets of cereal, cookies, toilet paper – goods you usually have at home – so that your children will start to value it instead of taking it for granted. With children of this age, it is best not to let them play with coins without adult supervision, for safety reasons, they will not want to put them in their mouths and run the risk of swallowing or choking.

From 4 to 5 years old

If you use discount coupons when you go to the supermarket, give your kids some to help them identify the products that are on sale. In this way, they will feel that they are helping.

Another possible game is to simulate a trip to the restaurant. In addition to being able to learn basic rules of social behavior, they also come to understand that, in the end, it is necessary to pay the bill.

From 6 to 8 years old

Visit the bank with your child and, if possible, open a savings account for them. Encourage him to make regular deposits and, as the balance grows, try to explain the concept of the interest rate: that is, how the bank pays a percentage or “reward” people for the savings achieved.

It might also be a good age to start collecting coins, going to a money museum, or playing games with toy notes.

From 9 to 12 years old

Compare prices together with your children. When going to the supermarket, check the price, quantity and, of course, quality. One week, try, for example, buying a branded product and the following week, a white label. Afterwards, discuss the differences with the children: what is the difference in price, cost vs quality, if it compensated, etc.

At this stage, you can also choose to give an allowance or allowance, even if symbolic, to learn how to manage. If they spend the money before the agreed deadline, don’t give it more. Let him see for himself that this is a finite good. It can also encourage you to earn your own money from small household or neighborhood chores. For example, walking the neighbor’s dog, running an errand, etc.

If you have that possibility, do a garage sale. Let your children select what they no longer use, but which is still in good condition and may have commercial value. This way, it not only “disrupts” the house, but also teaches the youngest ones to practice detachment and to understand concepts such as price, quality, second hand, etc.

From 13 to 15 years old

Teach your kids to create and manage a budget. The first step is to learn to distinguish “want” from “need”. Between money for lunch, school supplies and other small necessities, it is very easy, especially for a teenager, to get carried away by brands, fashions and other temptations. Preferably, include them in the discussion of the family budget, explain how much essential expenses (water, electricity, gas, supermarket, fuel, etc.), ask them if they think it’s expensive or cheap and make them participate in the decisions – this is also a way to hold them accountable and encourage behavior such as savings.

From 16 years old

From this age onwards, it is natural for your children’s consumption needs to increase, so it is important to start explaining more complex financial concepts to them. For example, the relationship between work and money, the various forms of work and income that exist (contracts, green receipts, part-time, full-time, etc.) or the concept of credit. If you have a mortgage or car loan, share the monthly cost and the weight on the family budget with it. You can also encourage your child to have a more “serious” job during the school holidays or at the weekend, for example, to buy designer sneakers, a DVD or to go to the café with friends. This is also a good time to share with your children concepts such as investing in real estate – if there is this practice in the family – or in stocks and bonds.

One thing is certain: betting on your children’s financial education from an early age and maintaining it throughout their lives will definitely make them more informed and responsible adults.