Tips to Develop Your Child’s Financial Senses (Part 1)

FOSTER AWARENESS

• Children learn so much through observation. This may not be the age for detailed lessons, but this is a great age to introduce broad concepts.
• Children may begin to understand the difference between needs and desires.
• Patience and restraint developed in other areas should translate to responsible financial behaviour.

SOW THE SEEDS FOR LIFE-LONG HABITS

• As adults we work and earn money. As adults, we also should be saving and giving in addition to spending our money. These are the habits that we should be conveying to our children during teachable moments.
• A piggy bank is an effective and time-tested teaching tool for saving money.
• Involve children in your family's charitable giving.

ASSOCIATE RESULTS AND REWARDS

• This is a great age to set goals and establish rewards.
• Although an allowance may not yet be appropriate, it isn't too early to associate compensation with work.
• You may consider tracking progress toward acquiring an item that your child desires.