Some of our first interactions with money probably involved trying to swallow a rogue metal coin whole or racing to the nearest shop with some cash in hand to buy last-minute groceries. As a child, you don’t think about money. You don’t understand what it means to have money and what it means to lack money. In your innocent mind, money grew on trees and there were always plenty of trees. The most money ever meant to you is a reward for a job well done which you quickly used to exchange for a bar of chocolate. Money often struggles to live long in a child’s hand anyway. Money flows from a child’s pocket like water running down a hill because they do not know how to spend wisely, let alone save for the future. They are never taught.
Something as important as money makes its appearance in hushed conversations among adults far removed from their immature children. Often, the most a child hears about money is their mother yelling at them from the kitchen to take some money from her purse and run to the store to buy some milk or their father decidedly saying “No more pocket money.” Sometimes, even these are rare; pocket money is a privilege. Talk of money is absent even in formal education. One is expected to learn on their own. After twenty years of zero experience with money, every person is suddenly expected to know how to open a bank account, keep track of their expenditure and savings, ensure their expenses don’t override their savings, file taxes, and somehow invest in mutual funds and the stock market. Sure, some of us learn quickly. What about the remaining 7,999,999,000? (This is, of course, a gross exaggeration.)
Considering all this, should children still remain unaware of money and the power it holds in society?
Conversations about money must start in the household. No taxes need to be filed by a child, but one can start out by showing their child how money can be used for spending. Going to the store is the best teaching situation one can use. Usually, money matters in childhood end here. Taking the next step forward, one can teach the concept of saving money to help children understand the value of discipline. It also helps discourage impulsive behaviors and encourage delayed gratification. Involve children in conversations about spending and saving for household-related expenses such as groceries. Model good financial habits and teach them from a young age that spending less than one earns is always a smart move. One can rest assured that learning about money in childhood consistently makes for better financial decisions in adulthood.