It is a reality that I see more and more, a great interest for the little ones to access the world of savings and investment; For example, there are my nephews, who surprised me a lot when they asked me what their best options are and see how their parents have instilled in them the habit of saving. Even my students are increasingly curious to access the financial system.
This led me to reflect, the system still does not consider children and young people under 18 as potential clients, although there are some instruments on the market, the offer is very limited and does not offer a competitive advantage for them. Products and services generally remain in a transactional account, access to online services and debit card, however, fundamental elements such as savings or investment account alternatives are left out.
In what happens, let’s help the youngest to manage their finances, let’s take them by the hand so they can understand that the relationship with their money is like any other, they must see that there are moments in which they must save, invest and enjoy .
For children, let’s start with a piggy bank so that they can see the fruit of their savings, gradually accumulate their resources to achieve certain goals. Let’s teach them that work pays off and the harder they do it, the better results they will get. Set goals together and if necessary help them achieve them, for example, if they want to buy a video game they can agree to put certain percentages, that is, they put 60% and the parents the rest; I know that the temptation to buy it can be great, but I guarantee you, it is worth training them in responsibility and in fulfilling commitments.
Teach young people the importance of using credit in their favor, you can give them an additional credit card on the condition that they are responsible in its use and that it is only in emergencies, share the proper use of the months without interest to buy things that really make sense to use this mode of financing.
All of the above is possible if you go step by step with your children, explaining to them the importance of having a budget, it is the key to success in the world of finance, the more detailed you do it, it will be very easy for them. Talk to them about the income, about the different ways in which they can obtain it, demonstrate with your example the responsible use of it.