Parents: how to talk to your children about money?

Give your kids a leg up on life by teaching them financial skills at an early age. Start talking to them early. Birdee helps you turn them into a financial whiz!

WHY FINANCIAL EDUCATION IS ESSENTIAL

Defined by the OECD as "a combination of financial awareness, knowledge, skills, attitudes and behaviours necessary to make the right financial decisions and ultimately achieve individual financial well-being valued by the individual", financial literacy is everyone's business!

It provides:

- A better understanding of how finance, banking institutions and the economy work
- An optimized and efficient management of one's budget and finances
- A solid knowledge of savings and investment products 
- Not to be left out when your friends talk about the usury rate 😬

A good financial education is useful all the time: compare loan offers when buying a property, choose a savings medium adapted to your profile, manage to live without working...

AT WHAT AGE SHOULD YOU START TEACHING YOUR CHILDREN FINANCIAL SKILLS?

Don't swap the evening rhymes for a reading of Karl Marx's Capital. Go gradually, the idea is not to disgust your children. If there is no age to teach your toddlers the joys of capitalism, start teaching them financial and budgeting skills at age 6. That's the age when they start learning to write, read and calculate.

Before that, explain to your children the difference between coins, the value of money and things - an abstract concept for little ones! -and that your budget is not Elon Musk's. Then explain to them who Elon Musk is.

TIPS FOR PARENTS ON HOW TO SUCCESSFULLY EDUCATE THEIR CHILDREN FINANCIALLY

Encourage their financial independence and ability to save

When your children are old enough to have some spending money, teach them to manage their wallets and save their money for something that really matters. Encourage them to think before they buy. Do they need it? Is this purchase necessary, or does it just make them happy? You'll help them understand the value of money and make smart financial decisions.

"You Can't Always Get What You Want"

As the famous Stones song says, you can't always get everything. You have to learn to manage your financial frustration! So we don't live beyond our means and pocket money. 

Then, the dematerialization of money also gives the impression of not spending anything! The shower can be quite cold when you look at the bank statement at the end of the month... Children - like adults for that matter - can be tempted to spend money they don't have, so teach them to use a credit card responsibly and avoid debt. You can also start with a blocked blue card.

Open a savings account for your children

Make an appointment at the bank and go with your child. The savings account is a rather solemn first step that marks the spirit. Take the opportunity to explain the purpose of the passbook and how it works. If you tell them "you put money in and you earn it without doing anything thanks to the interest", you may well quickly convince them to add to their passbook 😉

Play as a family and participate in educational events with your children

La Bonne Paye, Monopoly, turn financial education into a fun time with board games. You can also participate in a thematic workshop. In France, attend a conference with your children or participate in the activities organized during the Global Money Week. The event is organized in March.

Explain your daily management to your child and involve him/her

To help them understand, there's no better way to put their theoretical knowledge into practice. Involve your children in the financial decisions of any family so they understand how the family budget works, and how financial decisions impact their lives. Choosing vacations, budgeting for activities and leisure time, everything is a teaching opportunity!

Dear parents, you can also read them the articles on Birdee's blog 😉