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Financial practice in a motor show or in home appliances shopIf you are going to to buy the car or the difficult technical device, take with yourself the child. Discuss with it your decision to pay at once or to use the credit. If you make out the credit, do not forget to tell to the child that from this point on in your monthly budget there will be new article of expenses.
Being present at financial registration of the transaction, the child can learn something new about granting of loans and about necessity of a high credit rating. Ask the worker of credit department to tell to your child that such a high credit rating and as it is important to have it. Usually workers with pleasure tell stories about potential buyers who did not manage to obtain the right to the credit, and about at whom credit ratings were fantastically high.
As a result of such excursions your child will receive evident representation about how your personal financial report and a high credit rating replace a report card in a real life. Similar practice can be very short, but even possibility to be present on procedure expands an outlook of the child and allows to learn a lot of new about money and credits.
Financial practice at the exchange broker
After bank visiting take the child with itself in your broker firm. Ask somebody to explain from brokers an essence of its job to your child. (It is better to agree about such visit in advance that the broker could allocate time for conversation.) if your child has reached teenage age, it will be useful to open to it a personal bill. Get it to take part in registration of papers. Together with the broker help the child to choose the best variant of an investment of money to fill its bill.
Ask the broker to explain to the child a difference between various kinds of investments and factors of their recoupment. The majority of adults do not understand types of corporate actions and have no concept about principles of job of mutual funds. The understanding of essence of these investment tools will provide to the child tremendous financial start in a real life.
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