How do we welcome our children into the world of money?

Reading young children stories with financial concepts and discussing money matters can help children learn about money and become responsible money managers. Reading books and talking with children about resource management topics during the early, formative years is ideal because this is when life habits and skills are developed.

In Numis Academy, we feel it is very important to teach young children about financial matters. One reason that parents do not teach their children about money, is because they are not sure they know how to handle money either. It is one of the things that is not always taught in school. We earn degrees in order to earn a living but are not always taught how to handle the money we earn.
It is important to start teaching children about money when they are young. You can use the world as your financial classroom. Real life triggers lessons you want to teach your child, and since you are probably handling money regularly in front of your child, stop and take two minutes to explain what you are doing.

In the book “Money Doesn’t Grow on Trees” by Neale S. Godfrey there is a story about a father and his son. He had taken his children on a trip across the country to see their grandparents. Everytime they stopped to eat, one of the sons was always straggling behind. Finally, when they were almost home, the father asked him why he always late. He said he was picking up the money his dad kept forgetting on the tables. The father then realised that his son was picking up the tips he had left behind and misunderstood that he had forgotten his money.

Another big issue, is teaching the difference between wants and needs. We know when you are a child it is hard to know the difference, but if we don’t teach them when they are younger, it is harder when they are older. That is part of the problem how people spend money now. They grow up not knowing the difference between real wants and needs. Then get into trouble with debt because they feel like they deserve anything they want.

Lastly, there is a need to teach them “the three Ss”:
Saving - Putting some of their money aside so it’s there to protect them in the future.
Spending wisely - Living within their means and being educated consumers.
Sharing - Being generous and charitable.
In conclusion, it is important to expose young children to vital financial concepts to start them off on the right track towards their future money management lifeskills.