(1st part) 10 Things about money and finance I would have liked to hear my father

Why some parents do not want to talk to their children the value of money and the advantages of knowing their finances? Why have to learn these things on the street, when other parents that if they talk to their children? Why create consciously, that disadvantaged children, when money is omnipresent in almost all our actions?

There are a number of companies focused specifically, to take any form, the money they have children, each of their ages. On television consumption abounds incitement aimed at younger children, they have to withstand enormous pressure to introduce them spending and irrational consumerism. For when they come to learn in school, which is money, and should have a basic foundation of what is, how it is achieved, what it does, and so on. Money, as many things, is too important an element in the lives of all who are forming, even those who believe we already formed, so that children do not have a solid foundation that will help them understand most of its intricacies.

It is a very important task for parents to explain to children that "there is richer the more money you have, if not the least in need" and "Money does not bring happiness." Money is a tool that facilitates the exchange of goods and services. Often it is the tool that rewards or punishes behavior.

The value of money explained to the children.

The children must be given a solid financial footing so that it can function in this field as necessary, because it will also be a competitive advantage over others. Must have financial knowledge to understand today and tomorrow using the mechanisms of finance, money and investments.
The first contact of children with money, are the gifts they receive from their parents or older relatives. Usually unaware of their value, not know what to do with it and only serves to play. Ends in a drawer with other papers, or a bank. They have not learned the numbers and therefore to count. They usually know that those bills or coins that give them their parents in the Church, to cash them educated, are delivered in the collection basket and the best, know it is for the "poor" or to help the Church , although the concept that have not yet developed.
After seven or eight years, children should begin to know what money is and what it's for. What are the finance, investment and their most common terms. What is the thrift, its advantages and how it should be encouraged. At these ages, and learn in school to add and subtract, so that they are able to manage money, though unfamiliar with the concepts of expensive and cheap.
To promote the concept of savings in the bank, piggy bank or pig in mud, should not be an objective way to extinction. This is the first teaching tool for children to begin to know the value of money and the significance of the word saving. Educating children about the value and use of money, adults can result in better qualified to manage and monetize their finances. Children need to understand that it is easy to make money, which is very good to save and when it ends, you have to work hard to get more.
Make do with clear examples of things you can do with the money saved, depending on what they can understand, in each of the ages. When you are young, they can not be talking about compound interest, but from the accumulation to achieve goals that otherwise could not reach. One strategy that works well is to do with the children a list of all your needs and money involved in each one. This way they know their total expenditure and they realize the value of things, therefore, often are not aware of it. From this information, specify what expenses the boys attend with their pay and what the parents continue to bear, ensuring that decisions are agreed by both parties.
The weekly pay, in each country is called differently, is the amount fixed in amount and periodic payment, which give parents, grandparents, uncles or other relatives, so that children begin to cover their own expenses or whims. The pay is not an obligation of parents, the pay does not deserve, it is not a right of children, is a voluntary surrender of the parents and usually marks the beginning of some financial independence. Never make the parents at ATMs of the children, for use when they want to make money. In every country and in every family, according to customs and possibilities, the concept and the amount of pay varies significantly. Parents should talk with relatives and friends to know what the appropriate level of pay, depending on age and family economic situation. Not always the richest get extra pay. Often, they want through the pay, promote the values ​​and virtues of the children and that is one of the best tools.
The children even after receiving the payment from an early age, do not begin to have the concept of spending up to thirteen years or so and usually one of the first educational tools. It should not be made regarding the merits, such as good behavior or for doing tasks that come from a normal family obligations, such as the garbage, setting the table, making the bed, having arranged the room, etc.. Rather, the pedagogical tool should be applied in the elimination or reduction, as a punishment in case you have not met the basic standards of behavior or living together. It may be a way of learning to live within a family.
Depending on the volume of weekly pay received, may be the time the child starts in the form of opening a bank account or the deposit will in any financial instrument that will prove to be saving for their future studies or to assist in buying important things like stereos, the first car, etc.. In many countries, two of every three children under 14 are holders of a bank product such as credit card, savings account, account for prepayment of studies, stock, etc.. With a few dollars a month savings may form the mentality of the bankers of the future. You can start with children, in the future, apprentice sorcerers are finance, as the weekly pay can be a perfect mechanism for children to learn and plan for your money. From its spending discipline your credit future will depend, for good or for evil. Parents should be fully explained to their children their advantages and disadvantages and should be very aware of the way in using these credit cards.
In pay, should not be included the concept of costs, that they must make to parents, such as buying clothes, school supplies, essential food, etc.. It is advisable for children to collaborate with their pay (in whole or in part) to buy what is not necessary or essential. The pay must be used to exercise the will, regarding the value of things, consumption and savings.
Although it pays to spend an act of freely available for children, parents must be very vigilant, to know at all times, what are the trends that are developing, for example if you spend on unhealthy foods, if whims of clothing do not need, reading music or inadequate, excessive phone cards, etc..

I know some parents when their children were serving 18 years and entered college, I was suspending the weekly pay and given to each of them a credit card, to spend what they needed. The conditions were very simple: Every month we review together the accounts, if there was abuse or waste, is canceling the credit card. Expenditure is the wisdom of the rationale for their children. Due to the good upbringing, among other things related to the value of money, finance and austerity, there was not a single problem. Credit Card held the parents until they became independent economically, after finishing college.

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