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Why should financial literacy be taught from childhood?
“He's too young to understand what money is,” parents often think, and this is perhaps the biggest mistake in the educational process, because it is in childhood that the foundation of an adult's financial behavior is formed. At the age of 3-5, children begin to realize that products in the store do not appear “just like that” and that toys are bought in exchange for some pieces of paper or a card.
This is the age when a child actively imitates the behavior of adults. Not only in the way you eat or speak, but also in the way you spend, save, or discuss money. It is then that you can gently and naturally begin to introduce the concepts of money, exchange, saving, and even responsibility. Financial literacy is not a dry theory for teenagers that is limited to salaries and taxes. It is a skill that starts with simple things:
- choosing between two toys in a store;
- understanding that money is not infinite;
- a sense of satisfaction when you have managed to save up for something you want.
Starting from an early age, you not only teach your child to count coins, but also build a healthy attitude towards finances that will stay with them for life.
How to talk to children about money
Phrases such as “it's expensive” or “we don't have the money for it” sound like a ban to a child, but they don't carry any explanation. As a result, the child may feel anxious, guilty, or simply misunderstand why he or she cannot get what he or she wants right here and now. Instead, it is better to explain the refusal in one of the following ways:
- “We weren't planning to buy this today”;
- “We're saving money for a vacation, so we're choosing only the most important things”;
- “It's a nice thing, but we need to think about whether we really need it.”
Openness is the key to understanding. So don't be afraid to engage your child in simple conversations about the budget. Explain to him or her how you plan your purchases, why you sometimes choose promotional items, or why you save some money for later. This helps to develop a healthy attitude towards finances without fear or taboo.
Also, don't forget that good theoretical advice should be backed up by practice. For example, even young children can manage their own mini-budget. For example, let your son or daughter choose a snack within 50 hryvnias or decide what to spend their pocket money on. This will turn financial concepts from an abstraction into an understandable game.
Playing and learning: finance in the format of entertainment
For a child, everything new turns into a game. This means that financial literacy can also be taught in a playful way, without long lectures and boring lectures. The main thing is to choose something that will interest your child. Board games, mobile apps, fairy tales — all of these can teach without coercion. Choose games with elements of bargaining, budgeting, or decision-making (Monopoly and its variations for kids, Finance, etc.).
An authoritative example is also a win-win. But we're not talking about a parental role model, we're talking about favorite characters. If your child adores a character, use it! Explain that heroes also have to make choices, save money, and find a balance between “want” and “need.” For example:
- Spiderman saves up for a new suit from Tony Stark;
- Peppa Pig decides whether she should buy ice cream now or save up for a toy;
- Rapunzel learns to minimize her daily expenses so that she has enough money to buy a lot of shampoo for her luxurious hair.
The physical form of savings also matters. A piggy bank is a child's first “bank”. It teaches them to wait, save and see the result. And if it is also unusual (in the form of a favorite animal, with stickers or a counter), the child will perceive savings not as a restriction but as a game. You can even use the example of a piggy bank to explain what a deposit is: after a few months of active savings and storage, reward your child for their patience with additional pocket money.
First card and pocket money online
Did you know that you can give your child their first card as early as 10-12 years old? That's when they become conscious enough to understand how balance, balance and cashback work. To simplify the process of financial adaptation, introduce your child to all services directly in the banking app. The GlobusPlus mobile app is a great tool that you can use to teach your child basic financial habits.
- Open a separate GlobusPlus Light debit card with cashback — you can apply for it in a few clicks directly in the app.
- Order the card to be delivered so that your child can use it independently whenever the need arises.
- Review expenses together in the app and analyze what the pocket money was spent on.
- Offer a reward for saving some of the money. For example, if your child doesn't spend the entire weekly “limit,” you can add a small bonus. And later, when your child manages to save at least 1,000 UAH, you can put this amount on a deposit so that he or she can make his or her first honest profit.
What about cashback? It sounds a bit fantastic, but cashback is also an educational tool. If a child receives a small refund on expenses (for purchases in stores, cafes, or online), they learn that reasonable consumption is rewarded.
The main rule that parents should remember is not to be afraid to trust. The first financial mistakes are also part of the process. But when there are not only adults around, but also convenient tools for control and training, little financial geniuses learn responsibility faster and develop a healthy attitude towards money to always be in the black 🧡
