4 tips from Warren Buffett on raising a financially literate child

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1. Develop children's thinking flexibility

Because of the ability to think flexibly, a person can get out of many difficult situations. Go to the museum with the kids, discuss the pictures, and invite them to draw. Allow them to use not only ordinary brushes and pencils, but also sponges to wash dishes, cotton buds, or fingers. At home, you can think of anything from old things or trash - for example, a bookcase out of a box or a cupboard out of glass lids. This will help children learn to save money and care for the environment.

2. Be economical

To help children learn how to manage money, they need to be explained the difference between desire and need. Give your child two jars: one for savings, the other for expenses. Every time he receives cash (for a birthday, for example), talk to him about how he wants to save money and divide it between expenses. Let the kids make a list of a few things they want to buy or a photo collage. Then take a look at it together and figure out what you need from the list and what the whimsy is.

3. Teach your child the difference between price and value

We all paid extra for branded clothes or gadgets when we could buy the same quality goods at least once, but at a cheaper price. Parents need to explain to children how advertising works and where you can find an alternative to expensive things. Make a list of the products you and your children will buy in the store. But before the trip, go to retail sites and look in the catalogs. Choose the option with the best prices. Watch commercials and videos with your children. Ask them what catches their attention and then discuss whether the promotional products are really worth buying.

4. Help the children make the right decision.

Children need to be taught the right priorities. For example, simulate a situation - you want to buy a new TV, but the air conditioner in the house is broken. Therefore, you need to save money on repairing it, because summer is coming. After fixing the air conditioner, you can think about the TV. If the kids want to buy something, ask if they really need it. If the child can’t give a reasoned answer, help him - think about the value of the goods together.

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