Imagine for a moment how different your life would be if you knew everything there is to know about money when you were younger. You did not need to go out and buy numerous books to learn a life skill that you most probably learned wrong or didn’t learn at all when growing up.
The truth is everything you know how you learned from watching and observing others make decisions and solve money problems. According to a Cambridge study, children’s money habits are formed by the time they are seven years old. As such, if what you learned isn’t working for you then perhaps you learned bad money habits or simply don’t know at all.
Now imagine your child, probably in the same situation as you – observing and learning, watching you make financial decisions. Do not underestimate the effects you have on your child, who at that age is slowly forming habits of the mind.
Raising a money-smart child in these times requires a more engaged parent. It is unfair to send a child off into the real world without educating them on how to manage money as its setting them up for failure. Our education system does not set-up our children for eventual success in their careers and business as the cycle of financial illiteracy has perpetuated for years without recourse. With this in mind, I ask that you continue reading this series of Raising Money-Smart Kids – even if you have no children. Why? Because teaching children is a collective responsibility.
I have had the privilege to impart knowledge on young minds and despite the fact that I don’t have children of my own (yet); there are a couple of things that I have learned through my interactions. One thing for sure is that the biggest mistake any parent can make is waiting until a child becomes teenager or adult, to teach them about money.
Being concerned isn’t enough. Children as young as 3 years old can grasp the basic concepts of money that are: saving, spending, and sharing. Hence, the right time to teach the kids is now, NOT LATER.
Meanwhile, here are other related articles you may be interested in, on money and kids:
- 5 Signs It’s Time to Start Teaching Your Kids About Money
- How to Prepare Financially for a Baby
- Parents: 10 Money Tricks for New Parents
- 9 Simple Lessons to Help Your Children Appreciate Money
