Parents should instill financial literacy, or awareness of the need to manage finances, in their children from an early age. According to psychologist Kassandra Putranto, family members play an important role in forming children’s financial awareness.
As the owner of the psychological counseling company Kasandra & Associates in Jakarta, she highlights three aspects that can be taught in the family: income management, expense management and financial management. Revenue management involves understanding where revenue comes from. Children need to be empowered to generate as much income as possible from a young age.
“If they spend their childhood or adolescence simply playing, having fun and partying, they will not develop the ability to manage their income,” explains Kasandra. Expense management means teaching children to acquire things at the lowest possible cost, such as not hesitating to buy items at a reduced price.
Furthermore, financial education from a young age can begin by talking openly about finances within the family as a form of transparency and learning in the immediate environment.
Through this psychological approach, positive interactions can be encouraged within the family environment and parents can actively teach their children to appreciate the value of every dollar they possess.
