Financial literacy starts in childhood. Majority of the poor people are poor because of lack of financial literacy. And parents are primarily responsible for it. Oh yes, I said that and that’s true. Managing money for children is a serious responsibility for parents.
Let’s see if you’ll blame or reward your parents after reading this article.
So, when does financial education starts? If you are reading this article, it is probably because you know that financial literacy is very important to start as early as possible. But how early? What are the things that a little child should know about money?
As parents, we are mainly responsible for our own personal finances. But believe it or not, as soon as children are born, their personal finance begins as well. And as a parent, you’re in charge with it until your child reaches the legal age, more or less. And honestly, your finances will seem to become a little bit more complicated, when you get children.
Managing Money for Children – Should You Blame or Reward Your Parents?
- 1 What Are The Things We Generally Consider After Child’s Birth?
- 2 What Are The Investments You Need to Consider For Your Child?
- 3 Finances According to Ages:
- 4 When to Teach Your Children With Money?
What Are The Things We Generally Consider After Child’s Birth?
- Money/allowances from the government: if you are living in the 1st class countries like in the US, Europe, Australia etc., then you know that children get money from the government until they reach the legal age of 18.
- And there are a lot of other monetary benefits according to individual situations, i.e. child’s support, extra government monetary support for widows with minor children, etc.
- And you can name many types of expenses as soon as you get children, i.e. diaper, baby food, baby clothes, child’s care and institution, schooling, extracurricular activities, and the list goes on and on as the child gets older and older.
Why it is important to think about child’s finances so early is because it’ll ruin your own personal finances if you delay it.
In addition, your child will definitely learn how to manage money from you and you’ll pass your own financial legacy or literacy to your child. Obviously, this