Many of us are trying to raise money smart children (or grandchildren) – children who understand the role and value of money and who can handle money in an intelligent way. In this article, psychotherapist Marilyn Wechter shares insights into how parents can better communicate with their children about the topics of money and wealth, including practical tips on establishing effective allowances and budgets. I hope you find it useful.
Q: At what age should children begin to be educated about money?
A: You talk about it as soon as they can start understanding those concepts. When children are in elementary school, you can introduce the concepts of planning and saving, long-term gratification and short-term gratification, and “giving back.” You gear the conversation to where a child is developmentally and what he or she can cognitively understand at that point.
Q: How can we help the next generation learn to manage what they have and adapt when they encounter challenges (financial and otherwise)? …….
Read the complete article here Helping Children Understand the Meaning of Money and Wealth.