Family discussions can help children learn about money, saving, and wise spending. Of course, this does not mean worrying children about the bills or making them feel guilty for costing you so much.

Nor does it mean arguing about money-one of the central conflict points in relationships in every home. What it does mean is explaining the basics: that there is a certain amount of money that comes into the household and a certain amount of money that goes out, or expenses-food, utilities, and clothing-that must be paid from that money.

These guidelines can help you talk with your child about money and finance:

Talk money. Routinely talk with your children the specifics of how money is earned and spent. Explain your purchasing decisions: "We are buying bananas because they are on sale” or "We need electricity so I have to pay the bill.”

Model behaviour. Children develop their attitudes and behaviours by what they see you do, not what they hear you say. A lesson on the value of money might also involve family activities: "We are renting a movie, instead of all going to the Cinema, because it costs less money. We are saving for our family car.”

Set limits. Even if you are able to buy your child everything he or she asks for, consider the wisdom of setting some boundaries. Learn to say no to your child and be firm. Teach the appreciation of things that cannot be bought.

This includes working hard; facing challenges, obstacles, and frustrations; and achieving goals. This will help your child not to talk money for granted and also learn that money is not always readily available every time you need it.

Provide freedom. As she grows up and learns more, let her make her own decisions around money and personal finances. Check in with her to help her understand what is going well and what she can change. Help her learn from her financial mistakes.

Teach giving. Encourage your child to give some of his or her income to a charity. Your good feelings of sharing with others will help your child develop his or her own sense of charity. Teach contributing in nonfinancial ways by giving time, energy, and skills to help someone else.

Saving Money

A personal junior account in the bank for children is a good way to introduce concepts of money and savings to your children. The sooner a child learns to save, the more likely she will develop a lifelong respect for the value of money. She can save money for a favourite toy, as well as some goal in the distant future like pursuing studies out of the country.

A "junior bank account” is a good way to teach children about money and about having unified goals as a family. Maybe you will save as a family for that special dinner out on the town or a fun vacation. As your child grows having the right attitude towards money is very important for financial prosperity.  

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