In many families, money matters are something not to be discussed. Children often learn how to manage money by watching those around them. Parents can help children develop money sense by providing them with opportunities to manage their own money while still young.
Here are some ways to increase your children’s sense in handling money:
1) Give them the opportunity to manage an allowance. Children as young as 5 years old can learn how to manage money. Allowances are a means for teaching money management. Children should learn not to spend all of their allowance each week. Discuss saving for a future purchase or for future needs. A younger child may be interested in a toy which is not yet on the market or may require additional savings to purchase. An older child may be considering long-term needs such as when they go to college, work, or travel.