Introduction
Financial literacy is crucial for managing money effectively and maximizing available resources. However, in Mexico, financial education is not commonly practiced. Only 20% of primary schools in Mexico cover topics like saving or the value of money, according to the National Institute for Education Evaluation (INEE).
The Role of Parents
Given this situation, it falls on parents to teach their children the basics of personal finance. Experts suggest doing this progressively as the child grows, using fun and engaging activities.
Ages 3 to 5
Ricardo Arenas, spokesperson for Zenfi, a personal finance platform, explains that children aged 3 to 5 should be introduced to the fundamental concepts of money.
“At this age, children can understand that money is used to buy things. Teach them visually and playfully,” Arenas says, adding that children can also learn to save money for future purchases.
- Use different-sized and colored bills and coins to play pretend shopping.
- Decorate a piggy bank and teach its purpose.
Ages 6 to 9
In this age range, it’s important for children to differentiate between needs and wants. Zenfi recommends introducing the concept of banking.
“If a child wants a toy or an activity, teach them to save money for it instead of impulsively buying everything at once,” Arenas describes.
The National Commission for the Protection and Defense of Financial Users (Condusef) suggests a financial memory game where children learn about financial goals and spending and saving habits.
Visit a bank branch to explain different types of accounts, financial institution security, and money movement.
Ages 10 to 13
At this stage, children can grasp more complex financial concepts. They can start learning about the need for work to earn money and make independent financial decisions.
“Give them an allowance and have them keep a spending record. Teach them to compare prices for better financial decisions,” Zenfi’s spokesperson recommends.
A supermarket visit activity is suggested, where children compare prices, choose brands, and stay within a budget.
Adolescence
If a child has received proper financial education earlier, they can develop a more independent and responsible financial life during adolescence.
“They can start learning about investments, taxes, and long-term planning,” Arenas concludes. Encourage financial independence at home.
Opening a Cetes kids account, suggested by various financial institutions and organizations, helps children understand investment returns and concepts like inflation.
Key Questions and Answers
- Q: Why is financial literacy important for children? A: Financial literacy helps children manage money effectively, understand the value of resources, and develop good financial habits.
- Q: What age should parents start teaching financial concepts? A: Parents can begin introducing basic financial ideas to their children as early as ages 3 to 5.
- Q: How can parents teach children about saving and budgeting? A: Use fun activities like pretend shopping, decorating piggy banks, and supermarket visits to teach children about saving and budgeting.
- Q: What should adolescents learn about personal finance? A: Adolescents can learn about investments, taxes, and long-term financial planning.
