How to train the child's financial literacy: 17 tips

Money - it is something without which the modern world can not do and have a small child, tearfully demanding to buy something, you need to teach the correct use of the money. This will allow him to grow up financially literate and successful person. At what age and what you need to tell the children?

3-5 years

• Explain to your child that they need money to them to buy something: food, toys, clothes. That just can not take anything from the store shelves for all you need to pay.
• Money does not appear out of nowhere, they need to make their own mind and work, spend the time and effort.
• You can not always buy what you want, if you buy more, sometimes you have to wait a little longer to collect the necessary sum of money.
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• There are things essentials that are needed: food, clothing, hygiene products, and there are things that you want, for example, a new doll or a car track. So here are the things that you want, this is the second place, and you can buy them when bought everything you need.

6-10 years

• You choose how to spend their money. For example, a gift for his birthday money can eat through and walk to the entertainment center, and you can wait a little longer, and to collect the necessary amount to buy a new video.
• Do not buy anything in the first store, you need to compare prices, look at the cost of this thing on the Internet and then by selecting the lowest bidder, make a purchase, and save the difference.
• Talk on the Internet about the amount of money or about where you're going out to spend a very insecure.

11-13 years

• One should try to set aside at least a tenth of their money, it will easily accumulate a certain amount.
• Never tell anyone you can not disclose your credit card number, PIN code, and CV-code, as this information may be used fraudsters.
• The sooner you start to save money, the faster your savings will grow and bring in more revenue.
• Credit card - this is money borrowed that must be repaid, but the amount will be much greater because of accrued interest, especially if money is not returned on time.

14-18 years

• When choosing a university, to evaluate and compare how many will study in each of the selected options.
• Things that you can not buy for cash does not pay by credit card.
• The first salary that you receive may be less than you expected, due to the fact that it will be deducted from all taxes.

18+

• Do not pay by credit card, if it has outstanding debt for the last month.
• It is always important to have savings that you have enough for about three months, the usual life.
• If you're going to make a major purchase or take out a loan, be sure to consider the risk.

Also you will be interested to know that how to teach a child to handle money