According to MSN Money, "Money habits are set by age 7." This notion goes against what other experts say—that children younger than 8 are not really aware enough to truly comprehend lessons in finance. As writer Liz Weston points out, it can be hard to think you can teach a child in preschool about money when he or she still thinks a nickel is more money than a dime simply because a nickel is bigger.
Parents who think they haven't taught their children anything about money should know that not talking about money speaks volumes to kids. Plus, you likely refer to money and financial decisions without thinking about it in conversation without considering what financial lessons your child may pick up simply by listening to you.
Here are some great tips to allow you to be strategic and to help your children be money-savvy even starting as toddlers:
Teach your children to save. Although you provide for them, getting used to saving at a young age will ingrain the habit for later on in life. Research indicates that one reason children can be induced to save is that they think it is a grownup behavior and they want to imitate adults. Demonstrate that you save and have your child set aside even just part of a dollar.
Let your children buy (small) things. If you give your children a little money to spend in the store when they are toddlers, they will grow to understand monetary transactions. You already know that once you spend money, it is gone, but your child has to learn this.
You can set the example of good money management early when you enroll your child in our Toddler Care program. They may not know how much you’ve saved but your household budget will be better for it.
photo credit:401(K) 2013
