Many adults don't know how to talk to young people about money. The subject, so crucial to creating responsibility in children and adolescents, needs to be approached carefully so that the guidelines have the expected effect.
Financial education must start from the cradle and it is part of the small everyday activities. For the conscius use of money, it is necessary to address the subject in lighty terms with young people, giving a piggy bank, paying an allowance or even through a game or family conversation. It's never too early to discuss this issue with children.
We have selected some tips that can be useful for children and young people to learn to manage money successfully.
Download our Fun Guide to Child Financial Education by clicking here. (Portuguese)
Income education should start in kindergarten and literacy, for children aged 3 to 6 years, when they begin to wake up to the value of things and the need for exchange around them.
At this stage, experts indicate that there should be visual stimulation for the little ones so that they can see the money increasing. Instead of giving them an allowance, bet on a clear bottle and encourage them to fill the piggy bank with the coins they've earned over the week. Always talk to them about the conscious and collective use of money. Also exercise the kids by means of everyday examples, from explaining why a candy is worth "x" to why such a toy doesn't fit into the family budget.
After 7 years of age, your children begin to develop a better understanding of the relationship with money. If, before, allowance was not the best bet to start their financial life, it should be a good choice at this stage. Arrange with your spouse a monthly or weekly amount to pass on to you kid. If you want the grant the right amount of allowance, think about your children's regular spending and set possible goals for them – like engaging in school and getting good grades.
With the money in hand, ask them to responsibly manage the amount. At all times, don't make financial education a heavy subject. Children can be encouraged through playful games, such as Game of Life and Monopoly.
At the age of 14, in addition to receiving an allowance, children must be able to handle their own bank account. Open a simple savings or checking account with them so they know the importance of education in achieving financial freedom. Upon leaving high school and beginning graduation, introduce them to a credit card. The benefit is a great way to demand from them even more maturity in order not to exceed the limit when making purchases.
A survey coordinated by the Association of Financial Education of Brazil (AEF-Brasil) showed that, in five years, financial education initiatives increased around 72% in the country. The main responsible for this evolution are the educational institutions, which are including the topic in their curricula, a subject that has been discussed since 2010, when it gained official space with the National Strategy Program for Financial Education (ENEF).
However, only in 2017 that topic was included nationwide, with the approval of the Common National Curriculum Base (BNCC), a federal government document that gpverns the guidelines in the country. ENEF was also important to prove the efficiency of financial education in schools. Through a pilot project, it resulted in an improvement in the financial behavior of students, according to an assessment made by the World Bank.
It's not just children and adolescents who can start to learn about financial education. This is an issue that for a long time has been neglected by the media, schools, and a large part of society. Therefore, many adults are not aware of it. This is directly reflected in the increase in indebtedness and in misuse of credit products, problems that are part of the country's reality and affect mainly the most vulnerable classes of the population.
Several institutions offer Financial Education courses in Brazil. Here are some: