To improve children's financial intelligence, from the lucky money must let him "squander" start

01

Who should we give the lucky money to?

Being forced to hand in New Year's money, or being cheated out of New Year's money by parents, this should be our growing memories.

It's our turn to be parents, everyone be reasonable, this money must be the child.

Even so, we all understand the reason, but we must have concerns, like my little friend, will be so easy to get "huge money", will not encourage the habit of getting something for nothing?

I told you before, don't be afraid of parenting, and behind every worry there must be a hidden fear, which is worth digging into.

Just imagine, if the elder gave the child a famous painting worth tens of thousands of dollars or a collection of thousands of books, we will have this concern?

Do we still think, don't give it to kids because they get it for nothing?

In fact, such concerns reflect our own view of money, that money is "evil", a lot of money can easily make you bad.

We both love money and fear it, and this view of money is projected into the event of children receiving "large sums" of lucky money.

For me, Lucky money is a great opportunity for financial enlightenment. The first step in our children's financial enlightenment is to sort out our own outlook on money.

Worry about the children received New Year's money to promote the "get something for nothing" is not necessary, but how to guide children to use good New Year's money, is worth thinking about.

02

How to spend New Year's money?

We always follow the principle of "3/3/3", that is, the lucky money we receive is divided into three parts, one is for consumption, one is for deposit, and one is for gift/charity.

We basically start from the last gift/charity chat, because I have learned from Xiao D that lucky money is a ritual for elders to express their blessings.

So we will also discuss with Little D about who we need to express our blessing to. Make a list.

This process, in fact, is a large part of the deduction, are sent to each other to send the New Year's money deduction. Many adults and children used to say, mother also want to give lucky money to XXX, with your send.

This is not a good sentence, but I suggest that people tell their children from the perspective of receiving and expressing blessings.

After the deduction, we can apply the "3/3/3" rule again. That is very rigid to say, we want to implement principles to control the lucky money, some children may not buy it.

When we first introduced this principle, we started with a family meeting on "How Adults Spend Money."

D's father and I are going to share with him how we spend the money we earn from work, and use examples to help D understand the 3/3/3 principle.

You received $20 lucky money this year (there was very little lucky money in New York at that time). Would you like to spend it like an adult?

03

How to plan New Year's money?

1, consumption

The first portion is for consumption, the child can make the decision, within the budget, to buy whatever they want.

This is the part that many parents "dread", always fearing their children to splurge. I see it a little differently.

Spendthrift is the result of a lack of inner desire, which can not be satisfied over the years, leading to the need to fill the black hole in the heart once the disposable money is available.

And if we never deliberately create a sense of want, children are actually very easy to satisfy.

We started this practice when D was more than four years old. D chose what she wanted and never judged it from the price. She only had the standard of "want".

The so-called "splurge", in fact, is nothing more than "we don't want them to buy this thing", is still our adult subjective standard, is still we complicate things.

If you don't want to be the parent who confiscates your child's lucky money, then try to give your child some control over the money. Even if you buy a "luxury", then it is also the opportunity to let us experience with the child.

It's not that children don't splurge when they grow up. People who have never been given the freedom to spend will splurge when given the chance, no matter how old they are.

In addition, I recommend reading this article to help your child distinguish between wants and needs, and to make a better decision. 👉 Every child should take this financial education lesson once he or she gets the money

2, deposit

The second portion can be used to deposit, and sometimes the first portion can also be used together. You can try, many children understand the concept of savings, in fact than our adults are "obsessed with money".

Often will take the initiative to consume that part to say, I only buy XX, the rest of the money saved together (small D is so, my side several friends after the implementation of this principle, is also so).

Saving is as simple as helping your child understand that you don't have to use up all the money you have, but you can manage it.

The purpose of financial management has two, one is to experience money to make money; Another is emergency.

I specifically checked the home to open an account for minors information, together with everyone to share.

A Chinese citizen under the age of 16 living in China shall open a personal bank account on behalf of his/her guardian, who shall present his/her valid identity card and the resident identity card or household register of the account user.

The specific requirements are:

1 must be accompanied by the guardian for handling, the guardian as an agent to fill in the card information.

2. Proof of custody must be provided. (Birth certificate or only child certificate)

3. Household registration book or ID card of the child and the agent. (If children and adults in the same account page is best)

We are very encouraged to take their children to run a bank, and even can ask the clerk at the counter face to face, how much money can be saved after a year, these are very intuitive and vivid financial enlightenment.

3. Gift giving/charity giving

The last one is for gifts or good deeds.

This is one of my views on money, I always think to be the master of money, rather than the slave of money.

The money must be used for spending. After satisfying one's own needs and desires, one can help others with one's own money, which is very happy. This is the real master of money.

We'll talk to Little D about, is there anyone or anything she wants to help? For example, Little D donated to a zoo that was closed due to the pandemic earlier this year to help feed and shelter animals there.

These sources of public welfare are suggested to be permeated from daily life. The premise of doing public welfare with children is that children can already understand why, rather than "doing public welfare for public welfare's sake".

If there is no suitable charity for a while, or the child cannot understand the concept of charity.

It's okay to ask your child to think of other people she'd like to thank for the past year, make a list of them, and discuss gifts.

This is the second criterion of being the master of money, which is that we need to always be grateful. If we only have money without gratitude, we will never be satisfied and happy, which is also very sad.

Some people will say, isn't it just a red envelope? Are you so tired?

I developed this habit a long time ago, when I come across a problem, I ask myself three questions from the beginning: What is it? Why is that? How to do?

Choose to do the hard thing, solve the problem from the root; Even if the problem is not completely solved, the thinking in the process can in turn shape us, and we will gradually find that many problems are easier to solve.

More valuable than spending money to make money, is the view of money.