Money habits start early

so make the money lessons you teach your children, count!

- GAVYN LETLEY

MONEY HABITS start early. The lessons that children learn from their parents about saving, spending, and making choices with money often stay with them for life. That's why it's important to begin teaching financial basics as soon as possible.

But which lessons matter most, and when should we teach them?

Behavioural researchers from the University of Cambridge recommend starting money lessons as early as age three. At this age, children begin forming money habits through saving and simple decision-making play.

By age seven, most children can grasp the value of money, understand delayed gratification, and realise that some choices are irreversible and may affect them in the future.

South African studies bear out parents' influence in shaping their children's attitudes towards money. A 2023 UNISA survey in rural and low-income communities found that parental financial communication is significantly positive for financial decision-making in young adults.

A Nelson Mandela University study in 2019 also found that talking about money, modelling behaviour and involving children in small financial tasks were linked to more responsible financial behaviour.

The earlier children start learning about money, the better. All the international and local evidence points to early parental involvement, experiential learning, and real-world scenarios consistently resulting in better outcomes when dealing with money during adolescence and adulthood.

Of course, making the money lessons age-appropriate is important, and this article suggests the following guidelines.

Age 3-5

Learning delayed gratification