Children about financial literacy. The ABC of Finance program (teaching the basics of financial literacy to preschool children)

The transitional stage between carefree childhood and adulthood, called adolescence, is one of the most dynamic and vibrant periods in the life of any person. Bubbling energy pushes teenagers to conquer their first peaks and learn their first life lessons. School, friends and hobbies undoubtedly occupy an important place in the life of every teenager, but this is not a reason to forget that additional education is one of the most important aspects of life.

Due to their age, children at this time do not always correctly manage available finances and do not fully understand how difficult it is to get money. It is very important during this period to pay special attention to teaching financial literacy, and then the teenager will enter adulthood with a base of useful knowledge that will be useful to him throughout his development.

In this article we will look at the best literary publications that will help a teenager navigate the difficult financial world.

The book, written by George Samuel Clason, has long been offered for reading only to adults, however, today it is highly recommended for younger readers.

The work will allow a teenager to plunge headlong into the financial world and tell about the problems that can be encountered there, and also tell how to achieve real success.

A story that will draw any teenager into the wonderful world of adventures of the dog Mani and his friend Kira. Bodo Schaefer, the author of this book, is extremely popular in the financial world, so he knows exactly what needs to be conveyed to the young reader, as well as how to surprise him.

The book will not only tell about the author’s ideas, but will also teach the reader how to apply them in their life, and talk about the basics of financial literacy and its importance. A huge plus is that all this is told in the form of an exciting adventure, so teenagers note the ease of reading a very serious work.

Perhaps this is the most significant book on financial literacy, which is actively discussed by parents of teenagers on all forums. Perhaps because its original version was aimed specifically at the adult part of the population and created an incredible sensation in the world of financial literature.

Robert Kiyosaki and Lecturer Sharon L. are convinced that in American schools children are little aware of money issues, let alone in Russia, whose residents have recently come to the realization that children need to be instilled with the concept of financial literacy from childhood.

The advantage of the publication was the accessibility of writing, the content of exercises to perform, many useful tips, visual examples, the presence of diagrams and much more. This book is simply a treasure for a teenager who is determined to actively study financial literacy.

The book explains such important concepts in the modern world as inflation, loans, taxes, real income, budget, insurance and currencies in a language understandable to a teenager.

If you don’t know where to start teaching financial literacy to a teenager, then this book is perfect for starting into the world of learning about money and everything connected with it.

The encyclopedia of the Rosman publishing house will allow the reader to plunge into the history of the creation of money, tell why they appeared, what role they played in the ancient world and how this is connected with modernity.

A teenager will not find specific principles for handling money, investment tips and other subtleties of financial literacy here, however, experts consider a teenager’s historical awareness of this issue to be a big plus.

“Financial stories for teenagers” – Sergey Bidenko and Irina Zolotarevich

The title of this book speaks for itself, and it is suitable for young readers who want to immerse themselves in real events taking place in the world of finance.

Sergey Bidenko and Irina Zolotarevich accurately point out the relationship between the warm relationships of teenagers with parents, who are always ready to help their children, especially in such a difficult matter as planning a budget and expenses.

Equally important in this publication is that the authors touch upon larger issues in the financial world, such as insurance and stock markets.

Bailey Jerry and Lo Felicia have written a series of books for teens about financial literacy. Of course, they are all unique and deserve attention; we will tell you about three publications by these authors, which are the most popular among teenagers.

From the title of this book, the main theme that is being developed here becomes clear, but we hasten to convey to you that in addition to stories about wise spending of money, you will find fascinating stories about aspects of the economy and its components.

The next book in the series “Money? Money...Money!”, also written by Bailey Jerry and Lo Felicia, is sure to grab a teenager's attention with its content.

In this publication, the authors tell the reader in detail about ways to earn money on their own, where and what kind of part-time jobs a high school student can find, how not to fall for scammers, as well as about compliance with the labor code.

The advantage of this book is that the authors warn teenagers about such dangerous ways of making money as gambling and teach them to avoid them.

The third and final book in the Money? Money... Money!”, which we will focus on, will tell the young reader about the art of investing, tell in detail about the work of the entire banking system and the problems of inflation, and introduce stock and commodity exchanges existing on the world market.

This series of books is freely available on Internet resources and you can familiarize yourself in more detail with the other publications, which are no less informative than those we have mentioned.

Alexey Goryaev and Valery Chumachenko, like the previous authors mentioned in this article, teach teenagers how to earn and spend money wisely.

The emphasis in this book is on financial instruments such as bank cards, deposits and loans.

Hello friends! Financial education and ability to handle money is not an idle question. And I think the more we ignore good financial habits, the worse our financial situation will become.

And if we, adult aunties and uncles, are just now beginning to understand the importance of financial education, then our children can still have time to develop in themselves from childhood the right attitude towards money and learn to manage it competently.

We have already talked about this on the blog and published it. And today the opportunity has arisen to continue this topic thanks to the book by Evgenia Bliskavka, which is interesting and extremely useful, in my opinion, for both children and parents "Children and Money" , which by luck caught my eye.

In essence, this is a free tutorial for children and parents, in which Evgenia Bliskavka (author of the book and director of the Financial Planning Institute) explains in an accessible and simple form the meaning of complex financial concepts and teaches children the basics of financial literacy in a playful way.

This is a clear example of how to talk to a child about money correctly, so as not to permanently discourage his interest in this topic, how to simply explain complex financial terms to a child, and how to teach a child to use his knowledge about money in life.

The book contains a lot of useful information, which the author of the book, on behalf of its main characters (mom, dad and their children Masha and Pasha), generously shares with readers.

You will learn about how money appeared, what money is, why it is needed at all, how to manage and dispose of it, how to save and increase it, and much more you need from this book.

Secret No. 5. How to “tame” money?

Very useful information: we will find out what a budget is for and how it will help the child fulfill his deepest desires.

Having studied this chapter and understood where money comes from and how it is spent (income and expenditure), the child will be able to draw up his own personal budget on his own or with your help.

The book contains examples and calculations.

Secret No. 7. How to “grow” money?

Another discovery for children. And is it only for children? Many adults do not think about how to increase their money, citing the eternal absence of it.

Having understood what inflation is and having compared the methods of saving money, I think it is not difficult to conclude: what is the most profitable way to accumulate money so as not to end up in the red?

But Secret No. 8 on how to teach money to “run,” I think, will be very useful for many adults.

A story about modern and convenient methods of paying for goods or services with a detailed description of some of their types (bank card, Internet banking, payment terminals), with instructions on where you can pay for them and how to use them correctly - a real mini-guide for children.

Secret #9 is simply amazing. It talks about investing.

Thanks to the author of this book. My opinion: the sooner children begin to understand the meaning of this word, the sooner and faster they will take control of their personal finances, which will be very useful to them in the future. To be honest, I myself only recently became interested in this topic and methods of investing.

Secret No. 10. How to buy protection from troubles?

Another pressing issue that we do not pay due attention to is insurance against all kinds of troubles for ourselves and our property.

And secret No. 11 – about how to take care of your future and what you need to do so as not to end up without money in old age – is no less important.

Although it seems that our young heroes are still very far from it.

And these are not all the secrets and knowledge that can be learned from this tutorial. Moreover, the main idea that runs through all the chapters of this book, in my opinion, is this: how financially prosperous a person is depends, first of all, not on the amount of money, but on his ability to properly manage his money.

We adults often forget this, simple at first glance, idea. And this book clearly, with practical examples, with the help of mathematics and logic, not only teaches children the basics of financial literacy, but also reminds us parents that we cannot do without cultivating the right attitude towards money, without teaching children the basics of economic knowledge in modern life.

The book “Children and Money” was published by Mann, Ivanov and Ferber. And, as always, impeccably decorated. Even without reading it, it’s just a pleasure to hold it in your hands. I'm a fan of this publishing house. And I have already been convinced more than once that everything published in it is interesting, useful and informative.

And it is not at all necessary, when reading this book, to pursue great goals and strive to develop in your child the qualities of a great financier. Believe me, the time spent studying this book with your child is one hundred percent time spent fun and usefully.

Homework, puzzles, riddles, tasks and surprises on the pages of the book logically complement the main content and turn reading into an exciting game, a fun and useful journey into the not at all boring world of money.

Publications on the topic:

\ The purpose of this manual is to consolidate and expand children’s knowledge about the animal and plant world, living and inanimate nature, and rules of behavior.

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Teaching the basics of reading to children in the preparatory group Teacher Malanina M.V. MADO "Child Development Center - Kindergarten No. 30" Kungur.

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Program for teaching children with multiple developmental disabilities computer literacy “Step Forward”. Explanatory note. One of the promising areas for the development of correctional education is the use of new information.

Entertainment on the basics of life safety (life safety) for children of senior preschool age. Goal: formation of the foundations of safety.

The science of competent handling of money in the country is not taught at the state level. The government is interested in growing consumers who fiercely raise GDP. Business raises obedient slaves who are ready to work their whole lives for a salary. Bankers are interested in creating demand for credit funds.
Therefore, the difficult task of educating financial literacy in children lies on the shoulders of parents.
Why lessons are needed, as well as what methods of early financial management exist, we will analyze in detail.

How the financial world will be formed in the eyes of children depends on the level of literacy of parents and teachers. And the level of this literacy is in a deplorable state. It's good if dad is a businessman. Knows what and how it works. True, often such a dad does not have time to teach, even to his own child.
The parable “How children sorted the financial system into pieces” perfectly reflects the level of literacy of the people in financial matters.

Differences between needs and wants

Parents mistakenly believe that understanding the difference between needs and desires will come on its own at a certain age. However, even at the age of forty, many have not yet learned to draw the line between these concepts. If you don’t want your offspring to be among this number, start having explanatory conversations from an early age, taking into account child psychology. Fairy tales, games, and visual aids will help.

Plan your family budget together

We attract the little ones. The younger the child, the more enlarged the budget model. The main thing is assets and liabilities. The goal is to teach children to distinguish one from the other. Let's start with the most visible. The older you are, the more details. It’s worth considering your personal children’s budget separately.

How to teach your child financial literacy

The kind of financial literacy that leads to wealth is taught at school. Children will be taught how to pay taxes, how to take out loans, what money is, who Karl Marx is. This is important. But it will not teach a person to become a financially independent citizen.

What and how to teach?

Principles of financial literacy:

1. Financial planning, which includes setting financial goals. Breakdown into long-term as well as short-term goals.
2. Budget concept. The income and expenditure part of the budget can easily fit into the head of a small person if it is presented in the form of an interesting drawing. The children's income portion can include gifts and incentive income for achievements.
3. Principles of saving. Tell your child how to save.
4. Ways to earn money. The child must learn to understand that dad’s wallet is not a cornucopia. To do this, it is worth having explanatory conversations with the offspring about how they earn money.
5. Ways to create passive income. There are investment options for children of any age.
6. What are banks based on? What are credit and debit cards? How does this system work?
7. Mercy. Teach your offspring to take care not only of his personal budget, but also to provide all possible assistance to those in need. Tell us about ways to provide financial assistance to children in need. Help is not necessarily monetary. Recently, the volunteer movement has been developing in our country. Finding volunteer groups working in an area that is interesting and suitable for a child is not difficult.

Age groups and teaching levels

Preschoolers

For now, it’s enough for kids to understand that money is not endless. There is no need to talk in detail about how difficult it is for a family to get money. The important principle is that you work hard and get paid. Understanding that there is no such thing as too much money will not come immediately.
It is better to teach the basics of financial literacy to preschoolers at home in a calm environment. The option of a detailed explanation in the store why mom can’t buy a helicopter now is not successful.
There are no selection criteria for preschool children yet. Therefore, you should not take them to the store to choose a toy. The right decision is to discuss the house and buy without the presence of the baby.

Junior classes

Elementary school is the time to create a solid approach to teaching financial literacy. In the eyes of children of this age, the financial world is still illusory. Kids are just beginning to understand that they need to work to earn money. It’s good if younger schoolchildren already have the skills to independently spend money in a store. If you haven't yet started teaching your children about their own money, it's time to give it out. Let the guys make financial mistakes on small amounts. This will build your ability to handle money.

Teenagers

Schoolchildren are gradually beginning to understand the need to spend money wisely. Switch from weekly payments to monthly ones. The amount of money given out should increase.
The principles of financial literacy should be thoroughly explained to adolescents and young people. At this age, introduce your children to the graph of income sources described by Robert Kiyosaki in the book “Rich Dad Poor Dad.” There are four sources: to earn money as an employee, working for yourself, creating a business and investment income.

The next point is mandatory for children to study: achieving financial security.
Teenagers are already thinking about how to make money.

Forming the right attitude towards loans
Understanding what borrowing is is an important financial skill. Many went through this school on their own skin without knowing the rules of the game. By teaching your student financial literacy, you will help them avoid making stupid mistakes.
According to statistics, every fifth Russian is a credit card holder, every seventh simultaneously pays off 2 or more loans. Most credit goals are not needs, but wants that you can do without.
You need to show the work of loans clearly using pictures and tables. It is important not to intimidate a child with loans, but to teach them how to use borrowed funds wisely.

Terms you can't do without

Money
Finance
Credit
Bank
Minister of Finance
Ministry of Finance

Useful economic games, activities

The only sure way to teach kids about money is through play. Financial games can be found in stores and on the Internet. And the variety of economic computer games will allow you to choose a useful activity for any age.

Monopoly is known to the older generation. Today there are many types. The goal remains unchanged - to become a wealthy landowner. Here are taxes and fines, rent and other delights of real life.
7 miracles. Buy, sell resources and build wonders of the world.
Also: Artificium, Colonizers, Jaipur

Computer games

The game Wild West is suitable even for preschoolers. To benefit from the game, mom will first have to figure it out on her own. You will be surprised how deeply and in detail the game can teach planning.
Similar - Big Farm.
Virtonomics. The game is suitable for teenagers. Here virtual companies are created with a detailed study of all business processes.
Rising Cities - urban planning strategy. It also touches on financial issues. Requires detailed budget planning.

Robert Kiyosaki's world bestseller on finance "Rich Dad Poor Dad" can now be read by children. A book adapted for adolescence called "Rich Dad Poor Dad for Teens". With the help of exercises, diagrams, and visual examples, this book is able to form a correct understanding of the financial world order.
Book "Finance for Teens" Popova Natalia will reveal important concepts: taxes, banks, loans.
Book "A Dog Named Mani" Bodo Schaefer will reveal the important topic of financial literacy to children in the form of an interesting adventure.

Children are growing up. Sooner or later they will become adults. What knowledge and lessons they now receive from you is exactly what they will become in the future as students, employees, husbands and wives, parents, grandparents. Some knowledge is especially important. Moreover, the earlier your children receive the most important knowledge, the more mistakes they will be able to avoid in adulthood.

Some of these lessons learned in childhood relate to love, work, life values. Parents tend to teach their children what is important to them. Your job is to give your children lessons that will help them learn to be successful, happy, and productive.

Unfortunately, one of the sciences that is very often neglected is the science of money. Many children grow up without the skills to handle money. Either their parents don't feel comfortable talking about money, or they don't think it's important.

Money is not a science that should be studied as an adult. The consequences may be too significant. An example is financial stress, which can cause other diseases and disorders. Or it could be living paycheck to paycheck and having no savings at all. In any case, for such people life is always more difficult than it should be. It is your responsibility as a parent to teach your child to be financially literate.

What does it mean for a child to be financially literate?

Financial literacy has several components. They include the concept of saving, setting goals, and the concept of making money work for you. Financial literacy helps you know that the instant gratification of a quick purchase is nothing compared to the emotions of completing a big goal.

Teaching a child to be financially literate means teaching him:

• How to save money.
• How important it is to set financial goals, both long-term and short-term.
• How to invest your money and make it work for you.
• How to create a budget and distribute your money so that there is enough for all the necessary needs.
• How to maintain control over your money using modern technologies and systems.
• That he is the only person in the world who can make decisions about his money.
• About the practice of donating to help others in need.
• How to decide whether to spend money now or save it for later needs and purchases.
• How banks work.
• How to make money and achieve your financial goals.

This is only the most necessary part of science that you should teach your children. Some of this knowledge is quite difficult and requires a long period of study and acquisition of the necessary skills. However, if you dedicate your time and energy to teaching your child to be financially literate, they will grow in confidence about their financial health. You can be sure that they will be able to go out into the world and stay out of financial trouble.

Why is it so important to teach your child financial literacy?

How often do you yourself experience money-related stress? When you're trying to pay off a mortgage, or thinking about your retirement, "money stress" is a fairly common problem for many people. You probably already know what steps you should have taken and didn't take, and what mistakes you should have avoided. And now there is a good chance to gain hope that everything will be much easier for your child.

There are several reasons why teaching your child how to manage their money is so important.

• So that he will be less stressed about money when he becomes an adult.
• So that he has the opportunity to live in comfort.
• So that he does not live with you when he becomes an adult, just because he cannot afford to live on his own.
• So that he can have a better life than you.

Debts and loans

Knowledge about money can help your child avoid some of the biggest financial mistakes people make. Maybe you yourself have gone through some of these mistakes?

I'm talking about debts and loans, or more precisely about deep debt and bankruptcy. Here are some statistics to consider:

Every year more than two million people become insolvent in Russia.

On average, every family has at least one credit card or loan. The average amount of debt per family is 400,000 rubles.

Teach your child how to manage money from childhood and they will be able to avoid these unfortunate situations. Believe me, he doesn’t want to know what the stress of having a huge debt behind him is.

Such situations most often happen due to lack of financial planning, overspending and lack of knowledge on how to save money for the future. You can teach all this to your child right now. It doesn't matter if he's six or sixteen, it's never too early or late to start learning about finance.

We come to the next topic I wanted to touch on. When can you start teaching your child financial literacy and how to do it?

When should you start teaching your child financial literacy?

You will be surprised, but you can start teaching your child money knowledge from the age of two. Whereas, if your child is already older, it is very important to start teaching him about money as soon as possible. And remember - it's never too late to start.

I will give you as an example several concepts that can be taught to a child at different ages.

Before school.

In preschool, you can teach your child the very concept of money - in other words, what money is and how to borrow it. You can talk to them about the meaning of different coins and paper money. You can also teach them that money is used to buy things. The store game is a simple way to teach the concept of money to young children.

In elementary school.

This age is the perfect time to start learning the difference between want and need. Children can help with grocery shopping and participate in financial decisions. This is also a great age to show your child how to use a piggy bank to introduce the concept of pocket money and working for money. By the end of primary school they should understand that in order to buy the things they want they need to save money.

In high school.

At this age, children are more than ready to start earning money. You can tie pocket money into some chores or give them opportunities to earn money around the house. This is also a good time to teach them how to save money for the future and for things they want to buy in the near future. At this age, a child can also begin to explore investing and use their savings to do so.

Graduate School.

By this time, your child should already know some financial independence. Hopefully they have already had the opportunity to work for money and are aware of saving for short and long term goals. They can already have their own investment account and are already seriously building their capital.

Once your child has enrolled in college or university, it's time to set him on the path to financial independence. Of course, you can pay tuition and help him manage his finances. However, he should also be able to handle most of his financial decisions on his own.

It's never too late to start teaching your child about money, saving and investing. Below I would like to touch upon the topic of the opportunities that everyday life gives us to teach children financial literacy. The right moments happen all the time, you need to learn to recognize them.

When should you talk to your child about money?

Teaching a child about money is much more than one conversation. Using real life situations and examples will help him understand everything in practice. They will learn not only from your words, but also through their actions. Here are some ideas and opportunities for talking with your child about money.

When he receives a gift.

When your child receives a gift for a birthday or other holiday, it's a great time to talk to him about saving money. Indeed, having received a gift, a child can refuse other planned purchases and save some money. And if it is a gift of money, then God himself ordered it. You can help your child plan how they will save and why they will save.

When you use an ATM.

An ATM is a magic box that dispenses money when you enter a secret code. No matter how it is! But children think this way! And you need to definitely talk to them about what an ATM is and how it works. This is a great opportunity to talk about earning money, saving and making spending decisions.

In the store.

Take your child with you on shopping trips. This is the perfect opportunity to explain budgeting to him. Talk about how different things cost different amounts. You can even ask your child to help you compare prices and find the cheapest option.

Payment of bills and receipts.

Paying bills is probably not something you usually do with your child. However, this is a good opportunity to talk to him about financial things that he takes for granted. You can talk about work and responsibilities, and how you pay these expenses each month.

This is also a good opportunity to talk with your child about different ways to save money, why it is important and why it is worth doing. For example, you can talk about turning off the lights when he leaves his room, this will save energy, and the money saved can be spent on family vacations.

Start teaching your children about money and financial literacy as early as possible, no matter what age they are now. The sooner they learn this science, the easier it will be for them to accept this knowledge in their head and use it in their future life.

How do you talk to your children about money? Share your experience of teaching children financial literacy in the comments to the article.