- 10 Oct, 2024
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- 1 Min Read
When to start teaching financial literacy
Starting early is key when it comes to teaching financial literacy to children. But how early is “too early”? Research suggests that financial habits can begin forming as young as 3 years old, and by the age of 7, children’s basic money attitudes are largely shaped. This means that parents have a unique opportunity to guide their children’s financial understanding from a very young age.
Why Start Early?
- Early Habits Become Lifelong Habits Just as with social behaviours and moral values, children absorb financial habits early. By introducing concepts such as saving, spending, and sharing during the preschool years, you can lay the foundation for a healthy relationship with money.
- Learning Through Imitation Young children often imitate the actions of their parents, making this the perfect age to model good financial behaviour. Simple activities like saving coins in a jar or making thoughtful spending choices when out shopping can have a big impact on how children perceive money. Showing them the importance of saving for something they want can make a lasting impression.
- Building Confidence Introducing financial concepts early builds confidence. By the time children are older, they can understand more complex concepts like budgeting, investing, or even credit. These lessons will help them manage their finances independently and wisely as they grow.
Financial Literacy chart by age
This simple guide can help you decide when and how to start to teach financial literacy to your children
| AGE | Financial literacy activity |
| Age 3 | Practice waiting |
| Age 4 | Go over counting |
| Age 5 | Associate “No/Wait” with spending |
| Age 6 | Start giving allowance |
| Age 7 | What do you want to be when you grow up? |
| Age 8 | Discuss the cost of living |
| Age 9 | Open a savings account |
| Age 10 | Teach credit and debit cards |
| Age 11 | Immunise against advertising |
| Age 12 | Demonstrate wise purchases |
| Age 13 | Interact with the stock market |
| Age 14 | Make your child work for something |
| Age 15 | Discuss university funding |
| Age 16 | Create a budget and live by it |
| Age 17 | Explain credit and credit report |
| Age 18 | Discuss loans and how to manage debt |
By starting financial education early, you are empowering your children with the skills they need to confidently make informed financial decisions throughout their lives. It is never too early to begin setting the stage for financial independence and security.
Stay healthy and Wealthy,
Written by: Anjie Enabor, FCCA
Reviewed by: WordsMaestro