FQ (Financial Intelligence Quotient) is called financial intelligence, financial intelligence index. FQ is the ability to clearly realize the importance of finance, control finances, use finance for the right purposes and understand the principles of cash flow.

Children nowadays are mostly focused on training to improve IQ and EQ rather than fostering other indicators, including FQ. Simply because parents often think that things related to money like how to manage money, how to spend it, and so on are natural things and children will become self-sufficient when they grow up. 

Some parents even think that exposing their children to money at an early age is harmful to children. However, they do not know that young money skills can be developed gradually as they grow up, but the right knowledge of money needs to be cultivated from an early age.

Whether training IQ, EQ, or FQ is not an easy thing. If parents do not properly educate their children, it will inevitably be ineffective, and may even be counterproductive. Therefore, before conducting financial education for children, parents should thoroughly understand the issues surrounding this.

Here’s one thing parents must keep in mind if they want their children’s financial education to be effective.

When should parents start training their children’s financial intelligence?

According to experts, parents should start training their children’s financial intelligence when they are 8, 9 years old. However, money management education here is not at all similar to adult financial management, but is based on survival instincts to guide children to learn how to take care of themselves. Helping children learn how to earn money and how to spend it to meet life’s basic needs is central to managing their finances.

Is it only the rich that can provide a talent education for children?

Children of rich families will have a more prosperous life than ordinary children. A life of getting whatever you want from a young age will easily lead to the formation of lavish habits and waste of money in children. On the contrary, children from poor families because of their limited family’s economy, easily form wrong thoughts about money, always thinking that all problems are caused by money problems. Therefore, whether rich or poor, financial education is necessary to help children have the most correct perception of money.

Talking about money problems with children, we have a classic story as follows: The same question “Does my family have money”, but two fathers have two completely different answers.

The first father said, “I have money, but you don’t. My money is earned by my hard work, and in the future you can also earn money through your own labor.” 

The second father said: “We have a lot of money in our family and this money will later belong to you”.

Although it was just a very simple question from a child, the father’s answer made the two children form a completely different way of thinking about money. The first child will realize that although the house has money, it is not his money, and if he wants to have that much money, he will have to work very hard like his father did. On the contrary, the second child will have the thought that the house has a lot of money and he will not have to work hard anymore.

In fact, nowadays, there are quite a few rich parents because they avoid forming the habit of wasteful spending and hiding their riches, pretending to be poor, and pretending to be miserable in front of their children. This approach is somewhat correct, but in moderation. Overdoing it can cause financial insecurity for children. Think about it, can any child be able to concentrate on his studies if he sees his parents complaining all the time about money problems?

Therefore, before the child becomes an adult, parents should clearly tell their children: “We will ensure the cost of education and living for the child and the child will not have to worry about it. But when you grow up, you have to create your own wealth with your own efforts.” This commitment is very important for children, especially children in not-so-well-off families, because only when children have a stable mentality can their intelligence develop well.

Financial education for boys and girls is not exactly the same

Because boys mature later, the concept of money is also understood later. Only when realizing that money is the key means to solve many problems, boys realize the value of “money”, and appreciate money. 

And girls often mature earlier than boys, so the purpose of educating girls in a rich way is to give girls a healthy mentality, cultivate them confidence and a comprehensive quality, from It helps them feel the beauty of life.

Raising poor children and rich girls is for the sake of achieving a balance. Because boys grow up quite late, they need to be trained to interact with the outside world early, and girls are too sensitive, so they need to be cared for, protected and to reduce the damage that the outside world will bring. for you.

Teach your daughter to manage money, teach your son to invest money

Since boys and girls each have their own strengths, the focus of financial education is also different. Teaching your daughter to do bookkeeping is to let her know how to manage money, how to live comfortably. Making a small number of calculations not only promotes the meticulous nature of girls, but also helps girls to have confidence that they can effectively control their lives.

Teaching your son to play Monopoly (billionaire chess) and other intellectual development games can help your son maximize his dynamism and flexibility in the future investment process. Children will gradually learn how to control their greed and impulsivity, in a hurry, learn to pay the price for their wrong decisions. Over time, when creativity and ingenuity are enhanced, children will naturally have a capital-conserving mindset.

Should money be used to reward and punish children?

Children may receive a remuneration for their work, but parents should separate work and housework. When children help the family with housework such as washing dishes, sweeping the house, cleaning the house, etc., parents are not paid for their children but must let the children understand that, as a family member, this is their duty. must do. But if it is a car wash, parents can pay the corresponding fee, because car washing is a service that needs to be paid for outside.

Paying children is to cultivate the concept of financial management for children, but parents absolutely cannot use money to manipulate their children. For example, don’t tell your child, “If you’re not good, you won’t have pocket money next month.” This approach is wrong, as it can lead to the misconception that money is everything in children. In addition, in this financial education, the whole family should be united with one another, not only should parents teach but grandparents will let their children go because this will greatly reduce the quality of education.

In short, in today’s increasingly developed society, financial education for children needs more attention. For children to understand the value of money, how to manage and spend money properly from an early age is an important premise to help them have a better life in the not too distant future.

Source: CafeF