Exploring Financial Socialization In Early Childhood

Abstract

The uncertain world economic situation will inevitably have an impact on the national economy. In situations like this, the ability to manage personal finances is absolutely necessary. Financial management skills are theoretically developed from an early age. Therefore, the topic of financial socialization by parents to early childhood is of great interest to educational researchers. This study intends to explore what is meant by financial socialization in early childhood, and how the methods used by parents.  The method used in this research is qualitative, namely literature review and in-depth interviews. Some of the key results obtained from this study include that parents' understanding of finances is still relatively low. The main obstacles faced include beliefs about whether or not children are appropriate to manage money, as well as parents' fears if their children's understanding of finances has a negative impact. In addition, several methods of financial socialization were found, namely through financial teaching, modeling and strengthening good financial behavior, involving children in financial discussions, providing direct experience in economic activities, monitoring financial behavior, role play and several other ways. The results of this study are very useful for encouraging systemic intervention in increasing financial socialization in early childhood.