BC Council for Families

by Tina Albrecht
Communications, BC Council for Families

Ask a child where money comes from and they may be stumped. Understanding the value and sources of money can be a challenging concept for young children. However, new research shows that even preschoolers can comprehend some basic financial concepts:

"young children can be taught about the basic benefits and tools of sharing, savings, and purchase that will support good financial habits and practices as children, leading to better managed financial lives as adult independent spenders and savers," was one of the key conclusions of a recent University of Wisconsin study on financial literacy.

A national survey conducted for the Canadian Institute of Chartered Accountants found that while 78% of parents say they have attempted to teach their children financial management skills, more than half (60%) believe that they have not been very successful. And a strong majority also believes that the financial services industry and governments also bear responsibility for ensuring that children and teenagers learn basic financial decision making skills.

So how do you begin teaching children about money? Beth Kobliner, a financial journalist and member of the President’s Advisory Council on Financial Capability, recommends starting the conversation with your family's values, not math. In a recent article for the Huffington Post she suggests these conversation starters:

• We make choices every day. When you go to the store, you have a finite amount of money. You can't buy all the different paint sets -- you have to choose one.
• Sometimes we have to wait. (It's good to delay gratification.) You may have to pass up tempting items now to buy one big thing that you really want later.
• It's good to help others. You can share your time, your talents and even your money. And sometimes it's fun to share money with a friend who has less.
• People work to make money. A teacher earns money. A police officer earns money. The librarian earns money. You can recycle cans, wash a car, or rake leaves and make money.
• You can keep money in three jars. If we get money, like from our grandma for a birthday present, we can put it into three jars: some of it is for spending, some is for saving and some is for sharing.