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.

Starting Them Young

Kids today have more money to spend than previous generations. Their attitude towards money will be influenced by their parents, the media and their peers. It is important to start them on the right track since their spending habits as children and teenagers will shape their attitude towards money as adults.

Children who learn good money management skills will have better chance of becoming adults who can make sound financial decisions and not get into money trouble.

However, teaching children about the value of money is more difficult in today's increasingly cashless society since they do not always see money being paid immediately for the purchase of goods and services. And yet it is because we live in society where credit is so easily available that the ability to manage modney is even more important.

But since good financial skills are not taught at school, it is up to parents to develop such skills in their children. But when does one start teaching children about money?