Some experts stress the importance of educating children about the concept of money at the age of four, to build and develop their financial awareness from a young age. This helps them to plan effectively and make better financial decisions when they grow up.
Beth Kobliner, the author of the book “Get a Financial Life”, says that at the age of three, a child can learn concepts about money such as saving and spending, while confirming that the benefit to the child is commensurate with the early start by which we introduce these concepts to his young mind.
The age of six to ten is the optimal age for the child to learn how to choose to spend. It is the moment when the child realizes that money will not be enough to bring everything he wants and that he has to choose, set goals and make wise decisions.
One of the ways to help the one develop a culture of savings in children is to start an open dialogue about money on a daily and natural basis and ways to earn and spend it. This has a great impact on developing their awareness of the concept of money and its role in our lives. The more open one is to discussing and talking about money matters with children – in proportion to their age – the more ready they will be to deal with it wisely and intelligently in the future.
It is also necessary to commit to setting regular expenses. Many parents hesitate to specify a periodic expense for the child, as they may not realize the value of the expense in stimulating and supporting the child’s self-esteem. In addition, this is a good opportunity to teach children the basics of a simple budget. The child is supposed to start receiving a simple and periodic expense according to his age and the financial ability of the family. This helps him to estimate the value of the money according to the things that he can get in return.
For her part, Suha Mortatha, a financial expert, said “as a start, it is possible to prepare a simple saving plan. For example, if the child is interested in a particular toy, we as parents must help him to develop a financial plan to save to buy it while reminding him that if he wants to spend all his expenses instead of saving a part. Accordingly, he will learn the meaning of responsibility and how to put off immediate desires to achieve larger goals later. He will then start to think about the value of his savings in the long run”.
It is also important to teach the child how to track expenses so that he can realize what he spends and what he saves monthly. The child can write this down in his notebook. This will prompt him to visualize the impact of spending on his budget and to realize the importance of saving to reach the desired amount.
In general, children seek to imitate their parents and adopt their natural behaviour patterns. Children must be taught that money does not come easily, as it takes time and effort. Parents will have to try setting up a savings money box in front of the kids or taking them to the bank to introduce them to the features of a savings account, the concept of a credit card and its proper use.
“On the other hand, children should be allowed to observe how to make financial decisions and use math in everything by taking them to buy house needs. There they get the chance to read prices, compare numbers and compare goods. When they realize that money is an essential part of our daily lives, they will understand its value” Suha said.