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# Understand financial early, It's really basic financial lessons

**Understand financial early, It's really basic financial lessons** - Received for change in the form of candy from a grocery store is common here, though strange. The reason the store does not have stock of money in small denominations.

If in the United States coins are still even have a nickname cents = $ 0.01, $ 0.05 = nickel, dime = $ 0.10, quarter = $ 0.25. If here was almost impossible to find coins 5, 10, 25, even lazy people use coins of 50 and 100.

Time when coins have nicknames like gotun = Rp5, jigo = Rp25, gocap = Rp50, cepe '= Rp100, - extinct, like the dinosaurs. Do not underestimate coins, because it would be Rp1 billion, if less than R1, only.

It's really basic financial lessons. Its definitely playing with coins is an easy way to teach the fundamentals of financial planning for your toddler, and will determine the financial success in adult life.

Come play coins

Brain toddlers like sponge. They are very easily absorbed the idea that parents will buy whatever they want, as easy to recognize color and sound.

However, a toddler will probably choose a can full of coins Rp100, rather than a piece of 50,000. She thinks the coin is heavier with a loud clang certainly more valuable than a boring piece of blue paper.

So for toddlers, you can begin to teach them about the value of money. The easiest way is to let the children touch and play with coins, then tell us that there is a difference between coins Rp100, 200, $ 500, 1,000.

Provide a variety of small denominations in your purse, let him pay for a packet of biscuits he likes 500. "Well .. boy, the price of a packet of biscuits was 500."

Arrange 5 or 10 of each fractional coins from Rp100, 200, 500 and 1,000. Then compare how many coins Rp100, needed to form 500 coins, how many coins or 200, which are required to form the 1,000 coins.

The more frequent practice with coins, the greater the additional benefit of teaching children about the value of money. Parents can show how to count and started to introduce them to the basics of mathematics such as addition and subtraction.

It's my money!

Children love to pretend as an adult and they are animating role. Because no matter how hard it is received, toddlers really like snacks, just most adults.

However, it is not necessarily bad, just steer it. Children age 5 years had begun to learn how to make a budget if you give them money and let them spend it.

You must lead them, but let them learn to make their own decisions. At best a parent can say, "Son, you can be poor if the allowance continues. Nah, you want to be rich or poor?" Let your child choose. Your job is to ask the right questions.

In providing money, parents can use the standard amount of money that ordinary parents to spend on snacks children, but not the major needs, such as snacks or toys.

But do not forget it, parents should explain that if they had given money to the children, parents will not buy anymore for children. So the child can decide whether she really wants to spend the money or not.

Parents can also start giving children pocket money on a regular basis when they enter primary school. The right amount of pocket money must be estimated carefully.

As a suggestion, you can use a benchmark that is 1/2 of his age multiplied by 1,000 per day (average price school snacks). For example, if the age of 6 years, then you can give half of his age multiplied by 1,000, or 6 x 1/2 x 1,000 = Rp3.000.

Some people think it's too cheap, while others argue that amount is too much. I think it can be adjusted with the assumption that the average price of school snacks.

Creating a budget is about to consider options and make decisions. This is a valuable lesson that the kids would get only if they spend their money themselves and they may be difficult to understand if the parents continue to spend money.

3 jars of treasures

Creating a budget for children is not the same as writing statements of cash flows as practiced parents. That would be very boring and soon they will lose interest.

You can use three or canned fruit sstoples each reading: 1) pocket, 2) savings; 3) charity. The three jars will teach about the concept of financial objectives, which shows the child that the money can be used for short-term goals, long term and good deeds.

Children must fill jars to get what they want. When your toddler asks bought something, he would count if he has enough money in a jar "snack" her.

Children also can take the money in a jar and took it to charity mosques, churches, temples, and put it into a charity box, or give it to the needy.

Well, money in a savings jar allowed to grow until it reaches a minimum amount of 100,000, or an amount sufficient to be deposited into the bank. This is where parents can introduce children to the bank, open a savings account for them and help fill out their savings. With a savings bank, children can recognize the concept of long-term financial goals.

Judul: Understand financial early, It's really basic financial lessons

Ditulis oleh Ira Yuniarti

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