Children are not born with good money management skills, they have to be taught. And parents can start doing so around the age of three. By then the child will usually have a vague concept that money can be exchanged for food or toys. This they observed when they go out shopping with the family.

Setting Good Examples

Action speak louder than words in forming the child’s attitude toward money. Children can spot inconsistencies when parents say one thing and do another. Therefore parents should examine their own money attitude and practices.

This would, for example, mean not being overwhelmed by debts or not being a walking advertisement for branded goods.