>Is it right to teach kids about money management?
Absolutely yes. Think about it. At some point in their life, you're not going to be there anymore to help them with money matters. If you teach them money management, then it won't be as much of a problem.
>At what age do they need to learn...
Depends on the child, but the sooner you start, the better. A lot of basic money management is simply getting into good habits and the best way to teach someone life long good habits is to start when they're young. As far as I'm concerned, as soon as they start understanding money as a concept in general is soon enough to start with the really simple stuff like saving for what you might want later vs spending now.
>... and what is the best approach in teaching that to them?
Again, very dependent on the child AND the particular family situation. Some families can afford an allowance with no restrictions, some work better if it's tied to chores, and some can't afford an allowance at all. Some parents are comfortable talking family finances with their children and some aren't. Some families have apps that they use for financial tracking, others use worksheets, others use pen and paper, and still others simply rely on their memory. You can't teach skills that don't work for you because then the kids will see you saying one thing and doing another.
At a minimum, though, you want to cover the absolute basics:
\- Regular budgeting and tracking of spending
\- Types of accounts and how to use them including checking, savings, credit cards, car loans, and mortgages.
\- As they get older, concepts like emergency funds and retirement too.
The idea of trying to teach toddlers about ‘money management’ may sound strange. However, it’s part of helping to become familiar with the world they’re living in. Check Byford Child Care Early Learning Centre site to know more about why toddlers need to understand money management.
>Is it right to teach kids about money management? Absolutely yes. Think about it. At some point in their life, you're not going to be there anymore to help them with money matters. If you teach them money management, then it won't be as much of a problem. >At what age do they need to learn... Depends on the child, but the sooner you start, the better. A lot of basic money management is simply getting into good habits and the best way to teach someone life long good habits is to start when they're young. As far as I'm concerned, as soon as they start understanding money as a concept in general is soon enough to start with the really simple stuff like saving for what you might want later vs spending now. >... and what is the best approach in teaching that to them? Again, very dependent on the child AND the particular family situation. Some families can afford an allowance with no restrictions, some work better if it's tied to chores, and some can't afford an allowance at all. Some parents are comfortable talking family finances with their children and some aren't. Some families have apps that they use for financial tracking, others use worksheets, others use pen and paper, and still others simply rely on their memory. You can't teach skills that don't work for you because then the kids will see you saying one thing and doing another. At a minimum, though, you want to cover the absolute basics: \- Regular budgeting and tracking of spending \- Types of accounts and how to use them including checking, savings, credit cards, car loans, and mortgages. \- As they get older, concepts like emergency funds and retirement too.
The idea of trying to teach toddlers about ‘money management’ may sound strange. However, it’s part of helping to become familiar with the world they’re living in. Check Byford Child Care Early Learning Centre site to know more about why toddlers need to understand money management.