Kids don’t have to wait until they’re adults to learn about money. In fact, the best time to instill good financial habits is early on in life. Just as brushing teeth or doing homework, simple money habits that children practice every day can help cultivate smart, confident adults.
Money makes more sense to kids in simple terms: earn, save, spend, and share. When children get pocket money, gifts, or other rewards, parents and teachers can instruct them to divide it up into four sections. One for saving, another for spending, one for future goals, and another to help others. This inculcates the attitude of balance and responsibility.
Saving is like planting a seed. When your child regularly saves a few coins, they gradually watch their money grow. This is learning patience and that waiting can have a better payoff than immediately purchasing everything. A clear jar or piggy bank makes this fun because children have something to measure their progress against.
Cost-effective expenditure is another important habit. Little kids can be trained to ask basic questions: “Do I really require this?” “Will this last?” “Is there a better choice?” Such questions help them understand the line separating needs and wants.
Children should learn to develop and communicate with themselves that income is acquired as work, hard work, and skill acquisition. Little acts of work, creative projects, or helping others can show them money is about work, learning, problem solving, it is tied to work.
Crucially, children should know that wealth is not just about money. It also means cultivating good habits, goodness, confidence, and helping and doing good.
As children develop small financial habits by saving a little, learning to spend wisely, sharing willingly they are planting the seeds today that can be planted for a strong future tomorrow.
