Starting with toddlers

Starting with toddlers
Children are not born with good money management skills, they have to be taught. And the parents can start doing so around the age of three. By then the child will usually have a vague concept that money can be exchanged fo food or toys. This they observe when they go out shopping with the family.

Good Example
Action speak louder than words in forming the child's attitude towards money. Children can spot inconsistencies when parent say one thing and do another. Therefore parents should examine their own money attitude and practices.

This would, for example, mean not being overwhelmed by debts or not being a walking advertisement for branded goods.

Allowances
Children also learn from experience, so apart from setting a good example, parents should give the children practice in handling money. This is where an allowance can play an important role.