When do you start teaching your kids on financial planning?

piggy bank - Piggy bank - for children to keep their money
@kaka135 (14130)
Malaysia
January 16, 2010 12:55am CST
I just read an article about teaching kids how to do financial planning, we can start teaching them when they are preschoolers. I suppose it's 4 years old and above. We can give them 3 piggy banks, for them to separate the money they have, such as giving (for charity), saving and spending. It's good to teach them to give to the needs also. I think it's a good idea to teach the kids how to do financial planning, but where do they get the money from? Do we start giving them some amount of money weekly when they are so young?
5 people like this
11 responses
• India
1 Feb 10
Hello my friend kaka135 Ji, Now the time has come to tell you some secrets of outr way dealing with children. As far as I am concerned, every child has sufficient funds after his/her birth. Like in my social living, when my children were born, each one has lot of money given as token of love depending on relationship and they made good start of their own. We never touched taht amount. As tehy grew up, we gave them some task of maintaining household accounts and my hubby will reward them with suitable incentives in form of money. Right from Nursary/Kg, each childwas blackmailedby my hubby, if they get 10 marks out of ten, tehy will get 10 paise and so on. They build up big funds. This is all possible in planned manner. Only that initial funds got by children shouldnot be claimed by parents. I would wait for your frank opinion. May God bless You and have a great time.
@drawan (66)
• Indonesia
25 Jan 10
At the time I was litte, I was given weekly, although a little money but I can not spend all that money for savings. If I had kids, I would do to my child as my parents system.
@cmhjjh (99)
• United States
18 Jan 10
I think this is a question many parents struggle with and what the parents does probably is very much affected by how well they finance their own money. My oldest is 4 and we have put any money that we has gotten up to this point in his savings but we have recently thought about starting something for him to learn how to save. As of now we just give him spare change from our pockets or wallets to use but as he gets older I am sure we will start an allowance or something I just think 4 is a little young for an allowance yet maybe 6 or 7 I want him to understand that we don't have to give him that money he needs to help out around the house to get that money.
@jkcokley (267)
• United States
17 Jan 10
I think that the sooner you can teach your children about financial planning the better. Teach them about how money works and that money should work for them. I would start by teaching your self about money first. Good book on this is Rich Dad, Poor Dad. I should have taught my children about money and know I am paying for it. I should have taught myself about money so that I could have taught them. They don't teach kids this in school, it has to learned at home. So as soon as a child understand that a quarter can buy a gum ball. I say teach them!
@bounce58 (17524)
• Canada
17 Jan 10
When I was young, and in elementary school, my parents gave me money allowance for school. I learned to save money at an early age. Unfortunately, what I saved from Monday to Friday, I spent on Friday afternoons. I would buy one matchbox car every week. I still am not sure if it were a good lesson to learn. Currently, my 9-year old still doesn't get money allowance. He's been asking though, and I should start giving him so that he could learn. I think I am even a bit late at 9
@callarse1 (4793)
• United States
17 Jan 10
Of course, I would assume parents could give them money to save, spend, and donate. How about giving them small amount of change (maybe 1 USD in change) and you can have it break it up between the three piggy banks. I don't know if I'd say a weekly allowance. Perhaps give them money for special occasions. Or perhaps you have them do little chores then.
@PeacefulWmn9 (10424)
• United States
16 Jan 10
I agree that the younger we start to teach children about finances, the better they will handle them as adults. And yes, this can begin at the pre-school age. I used to give mine a small amount of money for doing extra chores...those things not already expected of them. And then when they receive birthday and tooth fairy money, this can also be divided in the ways you've mentioned. Karen
@celticeagle (120398)
• Boise, Idaho
16 Jan 10
My answer to that would be thatt you need to be sure you are being responsible for alot of what children learn is through example. Then you start them with chores and teaching them wise money matters as early as you can. The earlier the better.
@dragon54u (31638)
• United States
16 Jan 10
I started by explaining to my children about buying goods for money. At the grocery I would tell them they can't taste food until it belongs to them. Until we pay, it belongs to the store. I would let them see me pay then tell them okay, now it's yours and you can eat it. They learned about buying and selling, theft and honesty that way. Later I would give them a little money and help them spend it, they were in first grade then. We would figure out what they wanted and how much money they had. If they bought this item they would have no money for the rest of the week and didn't they say they wanted to buy something else that week? Where would the money come from? Which one did they want more? That's where saving came in and I would explain if they saved a certain amount each week they would have enough for an item in the future. When they were old enough to understand the concept of credit, I explained to them what a ripoff it was, how credit card companies used their money and charged them interest rates so that they pay twice what the item costs if they borrow from the credit card rather than pay off the balance each month or use cash. They are both responsible people now, although one of them did accumulate some debt and he's very, very sorry! His brother learned from seeing his mistakes and has avoided debt.
@ifa225 (11098)
• Indonesia
16 Jan 10
Hello kaka, Maybe i will start teaching when my kids are able to count. Right now, at 8 years old, my boy has not able to count appropriately. so I guess i will wait until he is able to count well. Giving him money without counting knowledge would be useless i guess. happy parenting..
@Sreekala (23732)
• India
16 Jan 10
Hi kaka, I have also read an article about teaching the importance of investment. So that kids may learn to handle the finance. It means we should teach the kids how to save money for future. According to the article we can provide a box and giving them small amounts of money for saving. Since they are too small and doesn't have income parents should provide money for them. In this way they will get an idea to 'save' money for future needs.