Discussions have been taking place for years so that the subject of Financial Education is mandatory in basic education, with the aim of goal to create citizens aware of spending and the value of money in the market, in order to reduce the alarming levels of default in Brazil in the coming decades.
Read more: New project is approved to be applied in schools: Financial Education
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In the meantime, while the subject is not yet being applied in Brazilian schools, parents and guardians can and should teach their children to be responsible with money. Is it in your interest? So now here are some tips on how you can start talking about finances with your children.
Financial education and its importance
According to a survey carried out by the National Confederation of Store Managers (CNDL) and by the Credit Protection Service (SPC Brasil), out of every ten Brazilians, four of them are in default. At least that's what the data collected in June 2022 point out.
This year, the country reached the highest debtor record since 2016. This fact is worrying and, due to it, efforts must be made so that the next generations do not suffer with the same rate. Find out how you can teach your children not to become insolvent and irresponsible adults with finances.
- Explain how you got that money
Showing the child that getting that amount was not easy teaches them to value it. Explain how money is earned, whether it's taking your child to a day's work or showing videos of your routine, talking about the difficulties of the job or offering money so that he can do manual and tiring work, but compatible with his age from him. In this way, the child will be able to value what is conquered with effort.
- Give the power of choice and lessons
People with no financial education tend to have difficulty giving up their pleasures and unnecessary costs, as they don't want to give up their lifestyle, even if they have other priorities. That's why you need to teach the child that first you have to meet your basic needs or buy what's a priority, then what's left can be used for fun.
Thus, she will choose to fulfill her obligations and shape her leisure according to compatible parameters, becoming a responsible adult who does not incur unnecessary debts.
- Periodically give the child the power to control finances
Many card issuers offer the option of low-limit credit cards for children or savings accounts under parental control. It is possible, after a few months of teaching children to control their own resources, to grant some freedoms as a way of testing them.
How about allowing them to get pocket money or get the card for a day to go out with friends? Maybe they even buy their own lunch at school. These can be good ideas to check how they relate to money.