Russian psychologist Natalya Iskra recommends that parents start forming the correct financial behavior in their children as early as 3-4 years old.
Educating financial literacy is just as important as developing other essential life skills, and must start in childhood. The modern world dictates its own conditions, and the correct attitude to money will help a child to become successful and prosperous in the future. Already in childhood, the child comes to understand that money is a well-deserved reward for honest work, and a lack of it, due to improper treatment, leads to poverty.
Children must learn to save money for the desired purchase and be able to avoid dangerous financial schemes. At the same time, financial education, as the child and family psychologist Natalya Iskra advises, should begin at 3-4 years old. It consists of three main components:
the example of parents, the family model of financial behavior, is easily perceived and automatically copied by children, so it will not be superfluous for parents to shopaholics to explain the consequences of such a hobby; pocket money is an important aspect that teaches children to properly distribute the available amount. Parents should regularly allocate feasible funds, just like that, no way, and the child will decide for himself where to spend it. If he does not have enough money for the desired purchase, he should not add the missing money – the child will add the next pocket money to the existing ones and buy the thing he likes on his own; discussing the family budget with your child will help him learn to plan expenses, dividing them into important ones and those from which you can refrain from. An important rule: never reproach children for spending a certain amount on them. Even if they spoiled something by negligence.
If a child understands the correct financial model, what is income and compulsory expenditure, then by the time he grows up, he will have a healthy financial awareness.