Financial education begins in childhood. The first lesson is given by the parents when they give the child money and explain that if he saves it, he will be able to buy something with what he has saved.

It is important to explain to the little ones the importance of taking care of money, to teach them to appreciate it and above all not to waste it. That children learn to manage it is the parents’ responsibility, regardless of the amount they give to the children.

Financial education in childhood

As years go by, economic needs change: those of an adolescent or young person are not the same as those of an adult or the elderly. But at any point in life, when there is an interest in basic knowledge of financial education, there is a greater chance for a good quality of life.

Many banks offer savings products specifically for children, which allow them to accumulate the money they need to buy something important (video game, bicycle, computer).

Although parents can buy it directly, it is better to give the money to the child, who in this way learns to save, appreciate what he has and will celebrate the purchase of the desired item as a personal success, strengthening his self-esteem.

Youth and financial management

It’s normal for teenagers to want the same things their friends or classmates have, whether they can afford it or not. Lack of maturity and responsibility at this stage of life can lead a young person to mismanage their financial resources. In addition, it is common for young people to turn to their parents so that they can go on trips and go out with friends. Thus, without realizing it, they begin to acquire their first debts (although they do not necessarily have to be repaid).

That’s why it’s important that they start keeping records of their expenses and income, which is a simple way to write them down with paper and pencil. There are also mobile applications for more detailed records of purchases or payments for services.

Properly recording the expenses they make will allow them to better control their money, as well as to understand what they spend what they have and which of these expenses are unnecessary.

Although they will not always be able to see their whims satisfied, if adolescents receive a good financial education, they are more likely to manage their resources better and understand the benefits of saving habits.

Cost control and savings

Controlling personal finances does not require much effort: to begin with, it is enough to want to improve personal finances and monitor income and daily expenses. A good saving exercise is to try to avoid unnecessary expenses and repeatedly review and analyze what you want to buy or what you plan to spend on.

It is important to set short-term and long-term savings goals in order to achieve goals that are often not feasible only with everyday means: travel, high-tech products or simply unforeseen expenses that, if you do not have capital saved, can imbalance personal finances.

For their part, young students usually have no income of their own and are directly dependent on their parents or have scholarships for their education. There are also those who work, but it is normal that their work situation (scholarships, internship, part-time) does not allow them to fully cover their expenses. And finally, there are other young people who may have poor levels of control over their spending.

In any case, it is important to strengthen the financial culture in this period, when there are no major financial obligations and, as far as possible, they are thinking about building their own property.

financial year

It’s common to make mistakes when you don’t know how to manage your own finances. The damage can be minor or serious, but it is better to document it and avoid debts and bad decisions.

It will be useful for them to learn to plan a budget, regardless of the income they receive, and allocate part of that income to savings and be responsible when deciding on expenses.

Once the habit of saving is acquired, it is convenient to consider the next level in a person’s financial training: investment, in the form of financial products or revalued assets, since this, in the long run, will generate income.