Is it ever too early to learn about how money works?

Talking to the kids about money is one of the best ways to set them up for financial success later in life. The science says so! 

Studies have shown that when you introduce children to money early in life, encourage them to talk about it, and give them pocket money and the responsibility around spending and saving it, they develop better financial habits as adults too. Good financial habits really can be developed young.

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For younger kids

While you might have a hard time teaching a toddler about taxes, the reality is that you can bring money into their world earlier than you might think. Playing shop is a great way to introduce even very young kids to the idea of what money is and how it works. As they get older, you can introduce them to more complex ideas. 

Our best tip? Don’t shy away from letting them in on your everyday interactions with money. Let them pay with your card at the shop. Ask them what they’d prefer to spend their “treat money” on at the supermarket. You’re not going to get them to build a budget, but even these small things can make it easier to talk about money when they’re a bit older - for you and the kids!

Sorted has a bunch of awesome tips that provide more advice on using play, being open, making money fun, how to use pocket money and teaching them to stick to a financial goal. Read up here!

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For older kids

As the kids get older, understanding money becomes even more important. They might start looking at getting a part time job, buying their first car, or saving up for bigger and more expensive things. As they grow more independent, their knowledge of money - the stuff that makes life happen - has to grow too.

Sorted has you covered here too, with Sorted in Schools offering heaps of free resources and lessons that the kids can work through. The results are pretty impressive - check out this story from 2020 where children from Cambridge High School won $5,000 for putting together a full plan and budget for a community event. We reckon there’s some lessons in there that even finance pros could learn!

You and your children can sign up for free to Sorted in Schools here. 

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This was originally posted as an education article on the Money Sweetspot customer portal. If you read this as one of our customers, you would've earned some money off your loan! Do the mahi, get the treats. Find out more.

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