How and when to teach children about money

Parents start teaching their children about various aspects of life from the moment they are born. Children learn to eat, to groom themselves, to share toys, etc… in the first years of their lives. Parents can also teach children about money and the many ways to use it throughout the various stages of their lives.

As with most things in the realm of parenting, much more is captured than taught. Parents can start their financial lessons by properly modeling good money management for themselves. This can be done practically by taking preschoolers to the store and letting them watch money being exchanged and counted. Early concepts of sorting and counting can be demonstrated by shopping for groceries to show how money is calculated and distributed.

As children get older, they gain a greater sense of how money is used by observing how it is used in the home and community. Some parents choose to pay their children to do chores to teach them the concept of getting paid to work. This can be helpful in enforcing this concept and giving kids the responsibility to learn how to spend and save money wisely.

Children have other opportunities to earn money, such as when they receive money for special occasions. Parents can encourage their children to make the most of their resources by not spending them all at once. They can save a little, give some, and spend a small amount on themselves. These principles are early lessons for developing the discipline of self-control and delayed gratification.

When kids reach the age where they start earning their own money, like babysitting or fast food jobs, they need to open a bank account. Parents can open a joint account with their children and teach them how to use a checkbook and how to use their MAC card to make deposits and withdrawals. These skills are essential for children to learn as they approach adulthood and independent living.

Parents have a responsibility to teach children about money to prepare them for life. Appropriate parental spending and saving, modeled by parents, along with age-appropriate instruction at various stages of life, will give children a good financial foundation on which to build. Good money management skills taught at home are lessons that will stand firm for years to come.