Habits. Or better yet, summed up in three important words: successful lifelong habits.
Kids form habits – good and bad – at an early age. Their habits, including money habits, are
pretty well set by age seven. That’s why financial literacy for young children is so important.
Kids need to learn the financial knowledge about good money skills before the successful
lifelong habits can be formed.
And that job can’t be taken on by schools or financial literacy programs alone. Parents
are the number one influence on how children deal with money, so kids need to gain hands-
on financial experience at home with the support and encouragement of their parents. Let’s
take the example of healthy eating habits. Children learn about healthy eating based on the
Canadian Food Guide in schools. Kids are taught to eat more fruits and vegetables and
balanced meals but if the parents are not reinforcing the same message at home and the
fridge and pantry at home are not stocked with nutritious foods, then that knowledge is
wasted. The kids’ healthy-eating knowledge doesn’t become a lifelong habit of healthy
eating.
At Knowledge Makes Cents, kids as early as junior kindergarten gain financial knowledge
and skills through fun games, activities and role playing. Children as young as 3 years old
already understand the purchasing power of money. We teach them the flip side of the
money equation (i.e. earning vs. spending) so they can build a balanced knowledge about
money. Just as importantly, our parent workshops help adults become the best “Chief
Financial Parent” at home.
Habit is defined as “a settled or regular tendency or practice, especially one that is hard to
give up.” The partnership of financial literacy and hands-on experience is key to kids
forming successful lifelong money habits. And with great financial habits under their
belts, kids (and parents alike) can get on track to their own financial freedom.