Saving explained to children – How to teach it in the family


Saving

 

It’s never too early to teach your children about saving.

Families often prefer not to talk about money in front of their children, thinking that it is an exclusively “adult” topic.

In fact, money is frequently attributed a “moral” value that it does not have. Money is neither good nor bad, it only represents a useful means for achieving certain objectives.

Making sure that children and young people understand this is very important, because it allows them to become adults capable of calmly managing their own expenses and needs.

Furthermore, correct financial education allows young and very young people to learn to defer gratification over time, acquiring the basic principles of self-control and starting to think from a long-term perspective.

 

A right way for all ages

 The economic difficulties that many families have found themselves facing in recent years have led to the need to become familiar with conscious money management.

This also applies to children, who can learn to manage small amounts independently. There are studies that show that starting from a young age develops a skill that remains even when you become an adult. Learning when you are young is therefore fundamental, but how? It depends on age.

 

Preschool age and the discovery of money

Kindergarten children do not handle money directly, but they are able to familiarize themselves with the concepts of “little” and “a lot”.

They discover, perhaps while shopping with their parents, that it is possible to exchange money for various types of objects.

They also manage to be aware of some limits: if you explain to a child that each ride on the carousel costs a coin, he will realize that the rides will end when there are no more coins.

In this age group, the objective of financial education is to understand the meaning of sums of money, the economic value of objects and the basic principles of saving.

A parent can convey these messages through very simple games, for example by giving their children a transparent piggy bank, in order to show them the money that increases if it is not spent.

When children express a wish, adults also have the very important task of explaining how much what they have requested costs and that the money needed for the purchase is the result of the parents’ work.

 

From elementary schools to middle schools: the first approach to money

It’s time to start dealing with your pocket money!

Starting school is the ideal time to take your first steps in the world of money.

At this age children develop a sense of quantity and size and are able to calculate small sums.

With pocket money they begin to become familiar with the use of cash and manage their needs.

They learn to prioritize their desires, divide, order, give up and make conscious decisions.

It is essential that the child is free to make mistakes because preventing errors prevents them from gaining experience.

 

High School and Monthly Allowance: Long-Term Money Management

Teenagers are often conditioned by their peers to follow current trends. High school represents a test to verify whether or not they are able to make correct spending and saving choices on their own.

In fact, they are starting to spend a lot of free time outside the home and have the opportunity to manage their money independently.

In order for children to acquire a good relationship with the financial resources at their disposal, parents must become role models regarding economic decisions.

In this age group, the educational objective is to teach how to create and manage expenses in a long-term perspective and in complete autonomy.

The right tool to help them achieve their goal is monthly pocket money.

Getting teenagers to plan is a big challenge and kids need practice.

They will have to be encouraged to create their own budget, anticipating needs and checking at the end of the month whether what they spent actually corresponds to real needs.

They can be supported in defining priorities, but it is preferable to let them act freely, intervening only in the event of major errors in evaluation: mistakes, in fact, are part of the learning process.

The high school years are also those dedicated to the first summer or free time jobs.

For those youngsters who choose the world of work, out of a desire for autonomy or to have some extra income available, it will be even more important to familiarize themselves with the concept of saving.

It will probably also be more natural for them to realize, spontaneously, the value of money.

Having your own money makes you more independent, helps you grow and take on your responsibilities. In this way you learn how advantageous it is to save.

Over time you learn that putting aside a little money allows you, in the long term, to make purchases that would not have been possible immediately.

 

The Museum of Saving, in addition to regularly organizing financial education events for children and teenagers, makes the Pocket Money and Advice guide available to families and educators, with detailed suggestions for each age group.

To involve the little ones in a fun and playful way, the travel stories of Arco and Iris are available on the Museum website, a series of tales designed to educate children about economic independence, teaching them that a harmonious relationship with money is the right way to make dreams come true.

 

 

October 18, 2023