As parents, we tend to be quick to build our children’s social, academic and extra-curricular skills, but at best we see money management skills as a lesson to be saved for a later day or at worst hope it will be picked up at the “University of Life”.
The reality, however, is that children are far more capable than we, as parents, often give them credit for, and by delaying the introduction of money management, we are delaying their sense of financial savvy.
From as early as a child’s toddler years, parents can begin introducing the concept of exchanging money for goods or services. Use play scenarios to get the messages across, and look out for educational shows online.
Children as young as 4 or 5 years should begin receiving an allowance, which they can use to save up for a toy or treat, to encourage an understanding of the cost of immediate and future gratification. To teach them the value of work and accountability, you can link this allowance to accountability for household tasks or activities.