If the low savings rate of Canadians is any indication, it is safe to say that students would benefit from a course on personal finance starting from an early age. Good finance habits can help avoid running up credit card debt in university and early in one’s career. The effects of these actions are enduring and can be felt at the most inopportune times later in life such as when applying for a mortgage on your first house or wanting to start your own business.
Here are some tips for teaching children the value of money
- Kids follow what you do not what you say
- An allowance must be earned
- Don’t reward kids with money
- Teach kids to separate needs and wants
- Use a system (example: jars) to allocate money to spend, to save or to donate to charity