the role of parents in children's financial education

8 Roles of Parents in Children's Financial Education

The Role of Parents in Children's Financial Education - Financial education for children is very important. The family, especially parents, is a significant place of learning for the development of children's character. 

When is the right age to teach financial education to children? According to My Financial Planning, Rita Zwestika Reni, in, understanding about money can be accepted by children at the age of 6-7 years.

At that age, children begin to communicate fluently and a little begin to understand money and its uses. Children can also count the amount of money. Then, what is the role of parents in children's financial education? Read this article to the end, OK!

Also Read: Household Financial Problems, What Are the Reasons?

8 Roles of Parents in Children's Financial Education

Teaching financial education to children needs to be done in a disciplined and sustainable manner. Here are some ways.

Giving Real Examples

Before teaching financial education. Parents must set a real example with everyday behavior. Giving real examples will trigger children to get an idea of how to manage money the right way.

The role of parents is very important as a model for managing money for children. That way, the child will grow into a person who is responsible for finances.

Teaching Top Priorities

When the child asks for something, ask the child which item is important and needed at this time. Teach how to sort the priority scale so that children learn and understand which items need to be prioritized.

Parents can also provide an understanding of the benefits of goods when shopping. So that children can sort the priority scale based on the usefulness of the item.

Giving Lessons How to Manage Money

When children grow up, they usually try to find self-existence. At that time, the role of parents is needed in terms of finances. Teenagers tend to follow the trends and lifestyles of their friends. As a result, children will buy a lot of things and be consumptive.

Teach children to manage finances by giving pocket money as needed. Give direction and understanding so that they are willing to manage their expenses so they don't exceed the allowance they have.

Prepare Budget Plan

Teach children to make a simple budget plan. This is very useful in managing finances in the future. Invite them to make a budget plan of income and expenses for the next month and see if they are disciplined to do it.

Saving for the Future

Teaching children to save is an important role for parents in financial education. Teaching children to save can be done as early as possible. 

Parents can start by introducing the concept of saving to buy something they want. That way, children will appreciate money more and not waste money.

Introducing Financial Products

The Role of Parents in Children's Financial Education

If the child already understands the concept of money and savings, introduce other financial products. Take the child to the bank and introduce the activities there. In addition, parents can begin to explain other financial products, such as investments and insurance.

Investing is not an activity that is only done by adults, in fact children must learn to invest as early as possible. Parents can explain the concept of investment, the types of investments, and the risks. That way, they will learn to make decisions about the money they have.

Let Manage Your Own Finances

Children must be able to manage their own finances and decide their daily expenses. For this reason, parents must introduce the concept of salary and income to their children. 

Give the child an allowance periodically, either a week or a month, let them manage the money. Parents can also give salary by asking children to complete their tasks.

Giving Praise or Gifts

The Role of Parents in Children's Financial Education

If children begin to understand and can manage their finances, parents can give rewarding or gifts to children. This can increase enthusiasm for children.

In addition, parents can also give gifts in the form of money, if the child has completed the tasks. The money can be considered as a "salary" for the work they complete.

Also Read: Your balance is starting to run low? This is the End of Month Savings Way!

Use the Whiz Keuangan Finance App

In addition, parents can teach their children to manage their finances through the Whiz Finance App. Many features that will make it easier for children to manage their finances.

In addition, there are features chores and rewards which can help parents teach the concept of salary and duties to their children. Let not Curious, let's go straight to the application!