As a mom of 3 children, who have very different personalities it’s interesting to teach them about finances as all 3 gravitate towards different aspect of their learnings.

The eldest: loves ‘playing the stock market’ , loves anything to do with finances. A good saver.

The middle child: spends every nickle they get, hence we have implemented wait 24 hrs and if you still want it get it with your own money you can.

The youngest: a mix of both, likes to spend but also is a saver.

In my childhood and as I speak with friends same with their childhood, money was not talked about. You never asked what someone made, you never asked how much they purchased that large ticket item for.  I remember my grandmother ‘shhh’ me when I asked about the cost of something really big.  I learned thru this, there are things to share, and of course there are things not to share given the age. I try to remain very transparent with my kids about money and enforce a few key building blocks with them.

I get asked often about how and when to integrate financial literacy in children, below are a few of those moments and examples,  I will preference with below, do not forget to celebrate the small moments when you have realized they understand the concept.  Celebrate their learnings and milestones.  

1. The value of money-

Example:

Grocery shopping (any age):  Pick up two of their favourite cereals- one store brand and one well-known brand- explain why there is a price difference.

Goals(age 8+):  encourage your kids to have savings goals. I told my 17-year-old when he was 14 and started his first job, I will match your savings if you want to purchase a used car when you are 16.  He is 17 now, and doesn’t want to spend his money still.

2. Living within a budget-

Example(age 8+): Allowance- give your kids an allowance, it does not matter how much, start with a loonie/toonie whatever works within you’re budget and based on age.  We do not pay our 12 yr old the same allowance as our 15 year old- different chores.  The 15yr olds chores are harder and take more time than the 12 yr olds. HOWEVER- if you give them an allowance, empower them with the decision to spend it. They will make mistakes and purchase 5 chocolate bars at the store to give to their friends but they will learn.  Because—when they want to go to the movies with their friends, but they spent their money on chocolate bars the week before, hold strong and they will learn. (ie opportunity cost)

One last thing on allowances- give them physical cash- let them see it grow and deplete, until they get to the age that online banking is something they look at timely. ( when they get a job is a good age frame for this)

3. Implement a 24 hour on Big ticket items (any age):

Impulse buying gets the best of us.  Kids walking through a toy store, want EVERYTHING.  Encourage your child to wait at least 24 hours and if they still want it, go back and get it with their own money.

4. Giving (any age)-

Show kids the value of giving, this could mean handme downs, food drives, toy drives etc.

Compassion and empathy will take kids far in life, in my opinion.

5. Talk about investments (ages 10+):

If you have investments/retirement savings, show them the companies you are invested in.  If your not comfortable showing them how much you have invested just black that part out, explain to them why you chose the companies you did, consider taking their favorite brand and adding it to your ‘stock watchlist’ on your phone ( comes with an apple phone) and have them watch the fluctuations of that company. There are some great books out there for kids who are really interested, and it speaks to diversification, reach out if you want a list.