According to experts, children as young as three are able to grasp financial concepts such as saving and spending, and their money habits are largely formed by age 7.
As the primary influencer on children’s financial behaviour, it makes sense for parents to take advantage of everyday teachable moments with their children to help instil good money habits from early on. Open and honest conversations with children about money can help remove the mystery and fear and make money management part of everyday life. ADVERTISEMENT CONTINUE READING BELOW In this article, we explore some age-related financial advice to share with your children.
The Christmas advent calendar provides an excellent opportunity to demonstrate delayed gratification and, being both visual and tactile in nature, allows children to employ multiple senses in the learning process. Money is finite but choices are unlimited, and it is our duty as parents to help children make smart money decisions – understanding that all decisions have consequences for the future. Helping our children understand that any purchase they make today is a withdrawal against something they might have had in the future is a great way for them to understand that choices have consequences.
The need for more independence during these teenage years presents boundless opportunities to impart money management skills on a smaller scale. Seemingly simple activities such as grocery shopping or going out for a family dinner provide perfect opportunities to discuss the household budget, making choices and sacrifices, the reasons for keeping till slips and how to track expenditure.