Money is neither bad nor good in itself. Humans have been agreeing on payment methods for carrying out transactions for centuries, and since then, countries' currencies have become an instrument of daily use. However, many people develop a bad relationship with this tool, and even suffer when using it and making decisions about it. 

Experts explain that, as with other aspects of life, financial life, a person's relationship with money can be learned and shaped according to needs. Creating habits around this asset is possible, although achieving their correct implementation on a consistent basis takes time and discipline. For this reason, Parents are advised to educate their children about money management from a young age. 

“A good context for teaching children about the proper use of money can be based on work,” he explains. Maricella Álvarez, Assistant Manager of Customer Experience and Relations at SURA. And he adds: “This is to make them see that, in order to have money, to maintain a family and a home, efforts are required on the part of adults, which is rewarded with a salary or wage. This is associated with giving time, intellectual knowledge and, sometimes, physical effort.”

Along these lines, the expert points out that “the second thing to keep in mind is the transmission of knowledge in an illustrative way.” “This way, it will be easier for them to understand that making good use of money allows them to have food, clothing, education, a house and even treat themselves if possible,” Álvarez emphasizes. 

Educational tools to teach children about money

The inclusion of material created by experts to educate children about money management is recommended. However, That doesn't mean it's an obligation. Experts in the field point out that during this process we must never forget that we are dealing with children who have different learning rhythms. For this reason, the most important thing is to develop creative and didactic paths to teach them How to use money. 

“A good way to be illustrative with children is through comics or stories that convey the importance of work and of being a responsible person with the use of money and household resources,” says the Assistant Manager of Customer Experience and Relations. 

From the international organization Healthy children, created by pediatricians from around the world and endorsed by the American Academy of Pediatrics, highlights the importance of making a plan together. “Decide together how to keep track of your child’s money. Think of ways that fit the child’s learning style,” recommend the institution’s professionals. And they give some ideas for those people who don’t know how to start this process:

• Store money in separate containers, such as envelopes or jars. Label each container: Save, Spend, Share. Your child may enjoy personalizing and decorating the containers.
• Keep track of the money each child saves, spends, and shares with the help of a notebook or spreadsheet. Every time a deposit or withdrawal is made, check the balances. Parents would be in charge of keeping the money.
• Create a sticker chart. Instead of giving younger children money, create a chart and mark the money they earn with stickers.

“Once you’ve decided how you’ll track your money, decide what portion you’ll contribute to each category. You can make adjustments if necessary,” they say at Healthy Children. They conclude: “Remember that money management is a learning curve. Some mistakes are to be expected along the way. As with developing any skill, Positive reinforcement is beneficial“Reward your child for hard work, when he or she meets money goals, and when he or she makes smart spending choices.” 

The benefits of learning about money as a child

People who develop a good relationship with money from childhood are more likely to manage it correctly once they reach adulthood. In Latin America, a problem in this area is accentuated. An example of this situation is reflected in the report of the Development Bank of Latin America (CAF), where it is revealed that the “61% of people in the region do not save, and those who do save mainly informally".

“Financial education is essential for people's well-being, which is closely linked to emotional education and values,” says Juana León Álamo, founder and director of Learn Account“For this reason, it is better to acquire this knowledge and skills from a very young age so that good financial habits become a way of life,” continues the person in charge of the educational project designed to teach financial education to children aged 5 to 16, in an educational and fun way.

For her part, Álvarez points out that “some of the benefits achieved with this are related to the fact that children can value the effort that adults make to give them the best for their growth and development. “Another benefit is that they understand the value of things, so they will be more collaborative at home, and they will learn to earn their own things through personal goals,” adds the SURA specialist. 

And he concludes: “The main advantage is that they will learn step by step, in a natural and simple way, with elements that they know and examples that they can understand according to their age. As they grow, they will become more responsible teenagers and then adults with a greater ability to efficiently manage money.” 

The importance of including technology

Experts say that in an increasingly digital world, which children master from a very early age, the use of technology is essential. For this reason, in recent years, platforms have been created that contribute to this training. One of the most notable cases is that of Savings Spree, an app that won the Parent's Choice Award in the mobile applications category.

"Savings Spree “It’s an educational game that aims to teach children the value of money and how money works. Each of the six topics is taught through a round in a game show where the overall goal is to save,” the creators explain. They add: “Children learn about how to earn or save large amounts of money, and also about actions that save small amounts that add up over time.” 

Another example of this approach is FinZi, a fintech created in Colombia that offers a package of instruments that includes a financial service for children and young people between 10 and 17 years old. The service is approached from playful educational components and an electronic wallet.

“In Latin America, the issue of financial education is a big problem. It is something that people learn 'the hard way', making mistakes, paying fees or interest that they didn't expect, facing a number of things that you never knew existed, but they are there,” says Juan Zavala, co-founder and CEO of FinZiThe company highlights: “Acquiring financial education from a young age allows us to develop the tools we need to manage our personal finances well and achieve greater successes in the future.”

En SURA Insurance The aim is to generate information based on real data and testimonies from our experts. In this way, we seek to help parents and children so that they can build a correct financial education plan related to money. Doing it properly from an early age means that children can have a better economic context in their future and, consequently, access better standards of quality of life.