5 Simple Ways To Teach Children Financial Literacy.

What can you do as a parent to help solve the financial literacy crisis?Gone are the days when having a piggy bank or jar to save spare change in. With the recession the whole world is facing and in particular the soaring inflation in Zimbabwe, it’s time children learn a bit more about money. This is good foundational learning that they can build on later in life. 

Earn: It’s a good lesson for children to learn the value of work. You can give them jobs around the house or a neighbour’s house to earn some money. For example, they can help a relative clean out their house before moving or cutting grass for trusted neighbours. Put the money in the piggy bank or jar. Have the child check the contents every few days to determine what the amount of money in there.

Spend: Each time money is spent, have the child subtract the amount from the total. This also teaches children about mathematics as well, which is an added bonus. You could take a child shopping and explain how you set aside a certain amount for food and have the child subtract each item from the total amount. This will also teach them about budgeting.

Save: When kids see a new toy, they want it and the urge is strong. You can give the child a choice though, either they can have immediate satisfaction by using the money they saved or they can set aside money each week or month in a separate jar for the expense. Have a countdown each time the child comes closer to the goal they have set and make sure they realize the strides they have made in their quest.

Borrow: If a kid needs to borrow money for a special treat or are short on their goal, give conditions to borrowing. If the child doesn’t pay back the amount when they say they will, add on a penalty fine such as 10c for each day late or however much will help the point across without feeling like they are being punished. Have the child subtract the amount each day to show if they don’t pay on time, there are consequences.

Invest: Investing can be cool even for youngsters. Ask your child what products they like to buy and why? Research has stated Millennials and teens invest in products with positive corporate social responsibility. Have a child research where their favorite products come from and how the company gives back to the world. This will also teach them about the environmental impact of their desired gadgets/things.

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