Why is it so hard for our kids to understand it that money doesn’t grow on trees? I don’t know about you, but conversations about money are very sporadic at my house:
“No, we can’t buy that because it’s too expensive.”
“No, we can’t buy a toy today because I don’t have extra money to spend on it.”
“No, I’m not paying extra for that whatever-it-is-you-think-you-need. Because I said so.”
(Keep in mind, my daughters are only 5 and 6…)
Money is complicated topic, but the good news is that parents can start teaching the basic concepts of building a healthy, lifelong relationship with money as early as age 3.
According to a new study from University of Cambridge, researchers have found that kids’ money habits are formed by age 7. Financial experts also say that children as young as age 3 can grasp the concepts of saving and spending.
In my recent segment on CBS 2 in LA, we discussed a few simple steps parents can take to start the conversation:
You can begin by giving giving kids a commission for chores accomplished instead of an allowance that don’t necessarily require a work ethic.
Experts also recommend teaching tweens and teens the benefits of delayed gratification by giving them the option of deferring a small payment now ($5) for a larger payment with interest ($15) in a few weeks.
Ditch The Piggy Bank:
Some also suggest ditching the piggy bank in favor of a clear jar so kids can actually see how much they’re saving or spending.
Read More On CBS LA: Mistakes Parents Can Avoid When Teaching Kids About Money
Read More On Fab Mom: MONEY TALKS. (DO YOU?)
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