Whenever it comes to teaching kids about money, most parents feel their kids are too young . This is because people consider money to be a difficult and complex subject.
But, let us tell you, it is not.
When should you start teaching your kids about money?
Is there any ideal age?
Some of you may even be wondering, “What’s there to teach about money? You want to buy something, you pay money. You sell something, you get money. Simple.”
This is where most parents go wrong.
When we say ‘Teach your kids about money’, we don’t mean explain the definition of money.
We mean, teach your kids how to handle money.
Handling money is a skill and unfortunately, it’s not a skill we are born with. It is an acquired skill. It has to be learnt.
So, when should you start teaching your kids about money?
The earlier the better.
Introduce simple concepts such as saving and giving when they are about 3 or 4.
A study by the University of Cambridge states the money habits are formed in kids by the age of 7. Therefore, it is vital to consciously inculcate good money habits in your kids from the very beginning.
Did you know...
No matter what age your kids are, believe it or not, you are already teaching them skills and habits regarding money. Verbally and non-verbally.
Although your kids may not fully understand the concept of money while they are still in the stroller, they closely watch your every emotion and study your behavior.
They notice your actions and the tone of your voice while dealing with money.
They learn from your attitude and sincerity and as they grow, they overhear your conversations about money and mirror the same.
They even experience some of your frustration and enjoyment about money.
Kids experience almost the same emotions you do regarding money, although you may not be fully aware of this.
Let's consider an example to understand this...
Say, you are going on a family vacation. While planning for the same, you tell your kids all the activities you have planned for them and as you do, your eyes sparkle with excitement and your body language is animated.
Just by seeing how excited you are, they also get excited and can’t wait to go on the trip.
On the other hand, let’s look at your emotions and body language as you are paying your monthly bills.
Your voice is probably a monotone and your body language is unanimated.
You may also be experiencing emotions of stress, frustration and even anger.
Although your kids may not fully understand why amma and appa are grumpy at the end of the month, they know it happens every single month.
They also know that, somehow, money is the cause of this monthly ritual.
So, what must you know?
With kids, more is caught than taught.
Whatever they see you do, they’ll do.
They will spend like you, save like you, give like you, budget like you and fight with future spouse about money…like you.
Therefore, while teaching them about money, what you do is more important than what you say.
Handling money is a skill and no one is innately born with it. Our money habits are most certainly influenced by our surroundings.
Therefore, make a conscious effort to imbibe good money habits in your kids. Just by doing this, you place them 10 steps ahead of their counterparts.