The development of financial knowledge requires acquired learning. But unlike math or physical education, it's not yet part of the school's curriculum, so the responsibility for financial education falls to parents. Unfortunately, many parents ignore this. This article lists five misunderstandings that may affect the development of children's financial ability.

1. Keep Silent

Why do children have various problems during their growth, such as early pregnancy, addiction to online games, and underage drinking? A large amount of money has been invested in research for this purpose, and the result shows that many of the problems of young people are related to the lack of communication. The results of this study also sparked a debate in society "if parents don't teach their children, who will?" In fact, it’s the same with financial knowledge. Although it seems that the consequences of lacking financial education are not as terrible as those of Internet addiction, the theoretical flaw will accompany children throughout their lives. Adults never discuss money before children, which only conveys this message: either money is not important, or money is the root of all evil, and no one dares to mention it. Either way, it's not good for children to properly manage their finances when they grow up.

2. Report Good News but Not Bad News

While keeping quiet about money has the most serious impact, it is closely followed by not worrying about money. The world of finance is brutal, filled with all kinds of trouble. It is not a Disney movie where cats and birds can happily sing and dance together. If you have any financial problems at home, like bills coming due, stocks stuck, or adults making bad financial decisions, it’s best to be honest with your children and mobilize the whole family to solve the problem. Normally, adults are generally responsible for maintaining the family's balance of payments. Since it is a family problem, why not mobilize the whole family to solve it together? This can not only reduce the psychological pressure of adults, but also teach children how to face and solve financial problems with a good attitude. Problems can be challenging, but as long as you face them positively, you can always find solutions.

3. Dad (Mum) is A Cash Cow

Everyone knows that "money doesn't grow on trees". When our children ask us for money, we often put these words on our lips, but they only stay on our lips. Many parents give their children pocket money in the form of labor remuneration or gifts without any regularity.

It's normal to want to give your kids more money, you want them to enjoy their childhood, and you don't want them to leave any regrets. But just as loose monetary policy can hurt the world economy, casual pocket money for children can also hurt our families. We can teach our kids that money is hard earned by having them earn pocket money by doing chores. Of course, it doesn't hurt to occasionally give a child some money as a gift. The key is to express it in the right way.

Give your child some ground rules, such as "you only get paid for doing extra chores, not everyday obligations like keeping the room tidy," or "I won't buy anything I want to buy at the store on a whim. Everything you want to buy has to be thought through before you go into the store." Then sit down and have a good discussion with your child about these rules, and modify them as they wish.

4. Investing is Too Difficult for Children

What is the right age for children to start learning about investing? Of course, the sooner the better. Even adults can be intimidated by full-page stock quotes, or the complex calculations of operating cash flow and profit margins, but some basic concepts in investing are not difficult to understand. Children are exposed to brands like Disney early on, and we can tell them that this company makes movies, magazines, books, video games, toys, and clothing. Remember to try to cover all types of investments, including real estate, corporate ownership, collectibles, and more. Because even if you prefer to invest in bonds, your children may not necessarily fancy that. Maybe they will prefer to invest in stocks in the future. You don't have to be an authority on every investment product. Over time, children will learn to collect relevant information on their own. Your job is to pique their interest and then encourage them to move forward.

5. Learn by Example

It is good to try to help your children establish a correct financial outlook, but if your own financial management habits are not good, even if you talk about it, the effect may not be good. In terms of financial management, the biggest help you can give your children is to cultivate good financial habits yourself and be a good example. Make up for your own deficiencies in financial management, teach children to learn financial management in a better state, and increase the authority of your words, because what you say is exactly what you are doing.

（Writer：Juccy）