Regardless of whether you have had or will have sports leave, many families with children feel a strained economy.
It can sometimes be difficult for the children to understand that they can stay at home when their friends can go to the Alps, the mountains or the hockey tournament.
– Honesty lasts the longest and emotions are not dangerous, says Nadia Wallin, who is a budget and debt advisor at Nyhetsmorgon.
It can feel hard to disappoint your children if they have expectations. Nadia Wallin, who is a budget and debt adviser, recommends adults to, despite disappointment, dare to be clear with their children by explaining that “these are the household’s priorities – and that’s why we are like this”.
– You don’t need to make demands on the children to understand when they are in the middle of an irrational reaction, explains Wallin. But when the child’s storm of emotions has passed, you can explain how things are financially.
– Just saying that we can’t afford it doesn’t mean much, Wallin continues and further explains that it’s good to provide a context in which you can land.
Instead of saying “no, no, no”, you can invite the children and show them what we have and include them in what you need to buy with the money you have. Children understand, says Wallin. And instead of it being a shock when you have to cancel something that the children expect, let them join in the planning. “Being human is so much about being able to adapt,” notes Nadia Wallin in Nyhetsmorgon.
– Because either we adapt or we crash with reality. And that doesn’t make you too happy, says Wallin.
“It’s never too late”
If you haven’t started talking about finances with your children, it might be nice to remind yourself that it’s never too late. However, it is better the earlier.
According to Nadia Wallin, 4-5 years is a good age for a child to start talking about economics. A first step is to give the children a weekly or monthly allowance and let the children practice with it.
– It is okay if the children make mistakes and are disappointed. Let them learn their lesson and teach them it’s okay, notes Wallin.
“Don’t swish when the money runs out”
Nadia Wallin’s children have a spending account and a savings account from which they themselves can practice saving and spending, based on a structure that the family has set up together. A concept she advises other parents about.
But she raises a finger of warning and says that the only pointer she has is not to swipe more money when it has run out. If you, as a parent, keep swishing your children money, you are encouraging a behavior where you can borrow more as soon as the money runs out.
– No one grows out of it, she notes.
CHILDREN AND MONEY – Tips and strategies
Talk about where money comes from
Explain why you get money when you work. What is a lot or a little money and why you can have different amounts. Maybe the child wonders why you have less money now than before. Here you can also get into what is actually a lot or a little money and why you can have different amounts. This is not only important for children’s understanding of money, but also for how the world around them works in connection with personal finances. Explain that many families are currently having a tough time, and that it is important to prioritize.
Talk priorities
Reason with the children about what you “need” to spend money on as opposed to what you would “like” to spend money on. For example, you need to spend money on food and accommodation, but you might like to be able to go on that holiday this summer. Then the children understand that personal finance is about priorities and managing resources.
Talk about what things cost
Already from the age of 3-4, children can understand the value of the things they have around them. Start early to explain what things cost. Take examples from everyday life and explain how it is connected. How much does the Saturday candy cost, for example, and how much can you actually buy for ten kroner? You can involve the slightly older child more deeply. Talk about how much leisure activities cost, or what needs to be bought for a birthday party. Discuss priorities and what you want to spend the money on.
Give the children weekly or monthly allowance
If the opportunity exists, feel free to let the children manage and make decisions about their own money by giving a weekly allowance. Start early, preferably from the age of 4-5, with a small amount and increase as the children grow older. This helps the understanding of the value of money and the economy of resources as well as the understanding of what it means to save. Talk to the child about what the money should be enough for and let the sum grow with the child and his responsibilities.
Involve the children in childcare
If you set up long-term savings for the children in, for example, shares or funds, feel free to involve them in various ways in this saving. Explain what you are investing in, what the investments mean and how money grows in the long term. This can arouse an interest in the children to save long-term when they themselves get the opportunity.
(Source: Finansinspektionen)
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