Should parents tell their children about their financial and economic situation? Most parents make mistakes

When a child asks with curious eyes, 'Do we have money in our family?' Do you choose to be vague or reveal everything? The latest child psychology research reveals that the golden age for family financial education is between 6-12 years old, and 90% of parents miss the best opportunity. Why do children need to know about their family's financial situation?

1. Establish a correct view of money

Children form preliminary cognition by observing their parents' consumption behavior. Deliberately avoiding discussion can breed extreme beliefs such as' money is dirty 'or' money is omnipotent '.

2. Cultivate the habit of living within one's means.

Children who know the real economic situation of their families will naturally consider feasibility when making demands. The survey shows that impulsive consumption behavior among these children has decreased by 63%.

3. Preventing excessive anxiety

Children who know nothing about their family's finances are more likely to feel insecure. Moderate transparency can eliminate speculative concerns such as whether the family will go bankrupt.

2. What information should be disclosed for different age groups?

1. 5-7 years old: Understand the basic functions of currency

Demonstrate the shopping process with physical objects and explain that "money needs to be earned through work". The focus of this stage is to establish the relationship between labor and compensation.

2. 8-10 years old: Understand the household consumption structure

Use a pie chart to show income distribution: how much does mortgage, food, and education each account for. Children can intuitively understand why they cannot buy toys casually.

3. 11-13 years old: Participate in simple financial decision-making [SEP], such as comparing the cost-effectiveness of two backpacks for children or calculating the family travel budget. The learning effect in practice far exceeds theoretical preaching.

3 Misunderstandings to Avoid

1. Crying poverty education

Frequent emphasis on "we are poor" can lead children to feel a sense of scarcity, and they are prone to retaliatory consumption behavior in adulthood.

2. Overprotection

Children who completely block economic information are more likely to fall into the trap of online loans when they independently manage their finances for the first time in college.

3. Emotional expression

Avoid saying "Do you know how hard it is for me to earn money" during arguments, as this can associate money with negative emotions.

4. How to elegantly answer sensitive questions?

1. Use metaphors that children can understand

"Our home is like a small supermarket, where we need to balance monthly purchases (income) and sales (expenses)"

2. Distinguish between needs and desires [SEP]. Remember one principle: the financial truth given to children should be like a puzzle, gradually pieced together as they grow older to form a complete picture. Smart parents understand that instead of letting their children obtain incorrect information from elsewhere, it is better to personally provide appropriate financial education.