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In each age group, which children and young people should know about money?

07/24/2012

The language and content of the conversation must be adapted to the child's universe, says expert

For Viviam Klanfer Nunes

SAO PAULO - Educating the children financially is not always an easy task for parents, for various reasons, either for lack of time or simply not knowing even how to start talking about it. And the first mistake is not knowing what to teach in every moment of childhood and youth.
This means that the language and content of the conversation must be adapted to the child's universe. You will not have much success to want to talk to your child 5 years of age on retirement, savings, credit cards and things that simply are not part of his reality.
From three to five years they are prepared to hear some ideas about money. When they grow a little more, are also ready to listen and absorb a little more about it. Thinking about it, the writer of books on personal finance, Liz Weston, decided to help parents.
She suggested that the concepts must be worked with children throughout their growth. Note:
From three to five years
- You need money to buy things;
- The money is earned through work;
- Sometimes you have to wait a while before you can buy what you want;
- There is a difference between what you want and what you need.
From six to ten years
- You must learn to make choices about how you will spend your money;
- It's good to find prices in different shops and compare them before you buy;
- You can have serious damages to share information on the Internet;
- Put your money in the savings can really protect you, and still earn interest.
Of the eleven to thirteen years
- For every dollar you spend, save 10 cents;
- The passwords and financial information such as credit card number or bank account, are always under threat of theft;
- The sooner you begin saving, the faster your money will grow - on account of interest;
- The credit card can be seen as a type of loan. If you do not pay the bill on time, will have to pay interest and end up owing more than they originally spent.
Of the fourteen to eighteen years
- When choosing and thinking in college, pay attention to the cost of each;
- Avoid the credit card to buy what you do not have money to pay cash;
- Your first paycheck will be smaller than expected, since part of it is for the payment of taxes;
- It's time to start thinking about individual investments aimed at retirement.
18 on the
- You must use a credit card only if you are able to pay off what you spend each month;
- You need health insurance;
- You must have financial reserves as at least three full wages for emergencies;
- When choosing a product to invest your money, remember to consider the risks and the annual costs, with fees and administration costs.


Source: InfoMoney

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