Things to Avoid When Teaching Financial Literacy – Financial literacy is a person's knowledge and ability to be able to apply the right decisions related to finance. The goal is to improve individual and collective well-being so that they can contribute to society.
Knowledge about finance should be taught to children since they are still in school. The goal is for them to get used to a healthy financial pattern and grow up with good financial behavior.
However, parents must be careful when teaching financial problems to their children. There are several things that should be avoided so that children can learn optimally. Here are 5 things to avoid when teaching financial literacy, let's see together!
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5 Things to Avoid When Teaching Financial Literacy
Here are 5 things you must parents pay attention when teaching financial literacy, yes!
1. Avoid Using a Definite Nominal
When teaching children about financial literacy, avoid using definite names as examples or in practice. For example, if you want to teach your child about saving, don't say that your child has to save IDR 10,000 per month. Instead, you can tell your child to save 1% or of his pocket money.
The reason is because the money that children have is not fixed and by giving a definite nominal, it is feared that children will only focus on the nominal without seeing the dynamics of the money they have.
2. Avoid Imposing a Savings Target
If you want to get your child used to saving, you should avoid imposing a savings target on your child. Let the child set his own target and what method of saving he wants to use. This method will train children to think critically and be wiser in making decisions regarding their finances in the future.
3. Doesn't Teach Taxes and Debts
When teaching about financial literacy, don't forget to teach tax and debt issues too! Children need to know the function of taxes and debts from an early age. The goal is for children to understand their obligations to pay taxes when they grow up and avoid debt.
4. Avoid Making Financial Decisions for Children
After learning about finance, children must of course practice it in everyday life. When children are learning to develop their financial strategies, parents as much as possible avoid making financial decisions for their children. Children must have the freedom to make their financial choices, parents are only tasked with guiding and supervising.
If parents always make financial decisions for their children, they are afraid that children will depend on their parents and cannot make the right choices for themselves.
5. Doesn't Teach The Importance Of Sharing
Saving and investing money is important, but children must also be taught the importance of sharing. Teach children to set aside money to give to people in need. This habit will shape the child into a person who cares about others and is not selfish.
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Those are 5 things you should avoid when teaching financial literacy to children. Children are a reflection of parents, so make sure you also set an example of good financial behavior.
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