Expert explains how to talk to children and teenagers about money and personal finances

Tips

Research reveals that 19% of parents admit that they do not talk about the topic with their children

Teaching children the best ways to deal with finances is often a difficult challenge for parents and guardians, as most Brazilians do not have access to financial education at home or at school. To mark the passage of Children’s Day, celebrated this April 5th, Serasa invited Thiago Godoy, known on social media as Financial Dad, to understand the best ways to introduce dialogue about money with children and teenagers.

Interviewed by the Opinion Box Institute, one in five parents confessed that they do not talk about money with their children. Among parents who discuss the topic with their children, 24% begin the dialogue after the age of 5 and 23% between the ages of 6 and 8.

“And, unfortunately, 18% of the adults interviewed only discuss family finances when the child is already a teenager, from the age of 12”,

laments Thiago Godoy.

Master from Fundação Getúlio Vargas and author of the best-seller “Emoções Financeiras”, Thiago explains that the best time to introduce this conversation at home involves children’s perception of the world.

“The ideal age can be around 3 to 5 years old, starting with simple concepts, such as waiting for gratification and the value of things, progressing to more complex ideas as the child grows”, he explains. “It is important to always keep in mind that the best financial education is always the example of a father, mother or even an older sibling.”

The lack of ability to approach finances in childhood may be related to cultural behavior, believes Felipe Schepers, COO of Opinion Box and technical responsible for the research: after all, 56% of parents do not remember, as children, having conversations with their parents. parents about finances and money.

As Thiago Godoy observes, “there is no point saying a lot of things and doing things differently. Children will follow their parents and, therefore, it is important for the whole family to educate themselves financially.”

Tips for children

• From the age of 3, teach the true value of money and the importance of children learning to wait to get something they want, such as a toy or a special outing. This can be done through games, pretend play with fictitious notes or small tasks that can yield rewards.
• Learn to say “no” to some of your little ones’ desires. Money should be associated with an effort, not as an unlimited resource – an opportunity to teach about choices and priorities. Explaining the reason for “no” helps the child develop an understanding of financial limitations.
• The allowance is an excellent tool for teaching about budgeting: the amount can be defined based on the family’s needs and financial capacity.
• It is important to be consistent and clear about what the allowance money is expected to cover.

Tips for Teenagers

• From the age of 10 or 11, children already have a greater understanding of their surroundings: if financial education was not introduced in childhood, start with the basics and adjust the dialogue to the child’s level of maturity.
• Give financial responsibilities and encourage participation in family budget decisions.
• Introduce notions of financial planning and saving for medium and long-term goals: strategies can include financial simulation games, budgeting apps and debates about financial news.
• Teenagers over 12 years old can now open a bank account, under their parents’ supervision.
• Monitor your child’s account and teach them how to use cards consciously. This is also a good time to talk about fraud and online security.

To check out other tips, check out the article on Serasa’s blog: click here.

About Serasa

With the purpose of revolutionizing access to credit in Brazil, Serasa offers a complete ecosystem aimed at improving the population’s financial health through digital products and services.

*With information from consultancy

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