GĐXH - Learning how to manage money and plan financially for the future helps children ensure financial security and overall happiness later in life.
Many people think that talking about money with children is unnecessary, even difficult.
However, experts confirm that children from the age of 6 can grasp the concepts of money and the formation of money management habits will begin from the age of 7.
Learning how to manage money and plan for the future helps children ensure financial security and overall happiness later in life.
"That's why parents need to teach their children about finance early," Alexa von Tobel, founder and managing partner of investment fund Inspired Capital, who studied at Harvard University, emphasized.
Alexa von Tobel
In 2008, while still at Harvard, Alex von Tobel founded online financial advisory company LearnVest and sold it for $375 million to Northwestern Mutual.
She recently partnered with children's media brand Rebel Girls to write a book called "Growing Up Strong: Money Matters."
The book includes personal finance lessons for kids and advice for parents on how to talk to their kids about money.
A lack of basic financial knowledge can cost children dearly as adults, ranging from hundreds to thousands of dollars each year, a survey has found.
That's why Alex von Tobel gives the three most important tips for parents on how to teach their children about money:
1. Teach about money in a positive way
Budgeting can be a pretty dry subject. No child wants to save money for the future when they can buy candy and toys now.
To get kids excited about saving and budgeting, Alex von Tobel advises parents to talk about it in a positive and empowering way.
In her book, she suggests parents ask their children what they want to spend their money on, then discuss ways they can earn and save to buy those things themselves.
In addition, parents can use methods such as quizzes, games, and money-related exercises such as decorating piggy banks according to size (small, medium, large), to help children save for short, medium, and long-term goals.
"Adults often associate money with stress because they only think about what they don't have. But if you guide children to positive, empowering experiences around money early on, their lives can change," says Alex von Tobel.
To get kids excited about saving and budgeting, Alex von Tobel advises parents to talk about it in a positive and empowering way. Illustration photo
2. Teaching children about money is related to daily life.
Talk to your kids about money in ways that make sense to them, advises Alex von Tobel.
That could mean talking about the prices of everyday items, such as noting that a bottle of water that costs 5,000 VND at the grocery store costs tens of thousands in the airport.
"When you're walking through a store and your child wants something, pick it up and show them the price. This one costs $29. I don't have $29 to buy this today, but we can think about saving it for your birthday," says Alex von Tobel.
She says this approach teaches your child that not everything they want is easy to get if it's expensive.
So, always pay attention to the price and the amount you can spend.
3. Don't idolize money
Expert Alexa von Tobel emphasizes that parents need to talk about money with their children in a realistic way so that children develop a healthy relationship with money.
Teach your child that money is a topic worth discussing, but not the most important factor in life.
"Money is simply a tool to help you live the life you dream of. Working hard will help you earn money. Manage it wisely, you will always have enough money to buy what you need and even what you want. Credit cards are not a magic item that can buy everything," von Tobel emphasized that money is not to be worshiped, but that does not mean it should be ignored.
Source: https://giadinh.suckhoedoisong.vn/3-ways-to-give-your-child-money-back-to-your-child-a-harvard-chuyen-gia-de-dam-bao-cho-con-mot-cuoc-doi-sung-tuc-172250317161817261.htm
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