It is good to start children thinking about money at an early age to instill good habits for when they are older
It is good to start children thinking about money at an early age to instil good habits for when they are older. Once children are old enough to count, around 6 years of age, is a good time to start introducing them to money.
Try to start getting your child to understand the difference between wanting, & needing items.
- Explain how the system works. You need to work to get money. You sometimes don’t need to spend all of your money. If so then it can be kept in the piggy bank/bank. If you find something you want or need in the future you can use your saved money. If you have not saved then you cant get the item until you are paid.
- It can be good to give your child some pocket money. A small amount is enough. If they set a goal for something that they want and then save up for it.
- When your child have enough money saved up, bring them to buy the item and let them pay for it also. It is good for them to see the full cycle.
- Allow them to earn extra (very small) amount of cash, if they do extra chores around the house.
- Talk to your older children about choices that you make financially, such as in the supermarket. Why did you choose the own brand item over the branded for example.
- As your child gets older, involve them in decisions like choosing an electrical provider, looking out for offers such as credit card interest rates advertised in magazines etc.