This archive report was first published on 26 October 2021.
Money habits are often formed in early childhood, and these habits can have a lasting impact on our financial decisions as adults. According to Edith Siddondo, a certified money coach and author, our money story is shaped by the patterns of emotions, language, thoughts, and memories surrounding money in our home environment.
Research suggests that children as young as three to four years old begin to form their money story, which is influenced by the adults in their lives. This story can be either positive or negative, but it is consistent with the lessons learned at a young age and into adulthood.
Why Teach Children About Money? ¶
Teaching children about money is essential for their financial well-being. It equips them with the knowledge and skills needed to manage their money effectively now and in the future. Children who learn about money from a young age tend to have better financial habits and are more likely to make smart financial decisions.
So, how can you teach your child about money? Here are some valuable skills to impart:
- Money planning (budgeting): Introduce the concept of saving, spending, and the value of money from a young age.
- Keeping money safe/saving: Provide a safe place for your child to keep their money, such as a money box or piggy bank.
- Counting: Teach your child to count money and understand the difference between coins and notes.
- Spending habits: Encourage your child to help you shop and make smart purchasing decisions.
By teaching your child these essential skills, you can help them develop good financial habits that will benefit them throughout their lives.
Published on October 26, 2021
