Teaching kids about money is an important part of helping them build strong financial habits for the future. Learning basic financial skills at a young age can help children better understand saving, spending, and making responsible money decisions as they grow older. Introducing age-appropriate money lessons to children can help them develop financial confidence and a healthier relationship with money.

Here are a few tips for starting early money conversations with your children: 

Start Conversations Early: 

Children learn about money at different ages and will naturally ask questions about money and finances over time. Answering questions in an age-appropriate manner is a great way to begin early money conversations. Everyday activities, like grocery shopping, can create simple opportunities for discussion.  Talk about how you decide what to buy, whether there are items you choose not to purchase, and how you pay for things.  

Begin with the Basics: 

Many financial transactions today are done digitally which can make it challenging for children to visualize what spending and saving money actually looks like. Because children see adults making transactions by tapping their phone, debit card, or credit card, they may not understand the fundamentals of how these actions are a form of payment. Show your child physical change and paper money so they can understand the concept of money. Play shopping games to teach them how money pays for items or read them age-appropriate books about saving and spending. Give them a piggy bank or open a Youth Bank Account where they can keep their cash. The Youth Flex Chequing Account has no account fees, unlimited transactions and E-transfers, and debit cards can link to mobile wallets for purchases. 

Teach Them How to Spend and Save: 

When teaching children about money, many people intuitively focus on lessons around saving money. It is important to teach children the value of money and how to save for goals, but another lesson to teach children is how to spend money. Don’t be afraid to tell them when something is too expensive or not worth the cost. Allowing children to make little spending mistakes can also be a valuable experience.  For example, they may want to spend money on a toy that quickly breaks but allowing them to learn and make small mistakes can be great financial lessons for your child. Teaching your child how to save toward something they really want can also help them understand the value of patience and planning.