Financial education for children

It's never too early and never too late to talk about money. This is elementary knowledge that parents must pass on. According to our expert Mathilde F.-Flahaut CPA, no one is better placed than you, as parents, to teach them the right decisions to make in this regard. Besides, if you don't, the school won't do it. Healthy financial habits in children and adolescents are acquired at an early age. Depending on the age of your children, different strategies are available to you.

We are talking about it!

It may seem simplistic, but just talking about money is the beginning of learning its value and sometimes helps prevent the subject from becoming taboo.

We play!

It is proven that children learn more easily through play. We then take advantage of it and play with them. The game, Destin, allows you to manage a budget with the money you have won. Monopoly allows us to manipulate money, to buy and sell land, buildings, stations and this while trying to keep a monopoly on our acquisitions. There are also applications designed to teach children how to manage a few dollars: Charly and Max, L'argent du petit poche Peter and BoursaMioche are just a few examples.

The models' parents

When we shop with our children we are presenting a typical pattern of consumption. Questioning how we spend is the first step. Are you more the type to impulsively buy the handbag that catches your eye or do you take a step back and time to think about it based on your budget? Be aware that thoughtful purchases provide longer-term pleasure unlike impulse purchases.

An allowance, a paycheck?

Specialists all agree on one point, children should be offered an allowance so that they have the opportunity to learn how to manage their money. In this case, the amount that will be granted will be a very personal decision but it will normally increase with age and the autonomy of the latter. Some specialists believe that it is possible to start at the age of 5 with little money, if only with a dollar a week.

A chore in exchange for a few dollars?

Where opinions diverge lies in how to grant this money. Many parents tie the money to specific tasks and some hand over a weekly allowance without asking for anything in return.

The choice of whether or not to allocate money to a chore is a question of value. If mutual aid is a value that takes precedence, what message are we sending? On the other hand, our expert Mathilde F.-Flahaut CPA tells us that starting an allowance from the age of 12 is very interesting since it allows us to teach our children the value of money as well than a better understanding that money doesn't grow on trees, but something has to be done to get it.

What is very clear is that in no case should you monetize the work done having a link with the school, both for homework and for good school results. Nevertheless, you can always give a little surprise without it becoming a habit!

What is a budget?

With the allowance you give your children, teach them how to budget and save some of it. Teenagers, on the other hand, like to have goals and a certain purchasing power. According to the financial guide produced by the Office of the Superintendent of Bankruptcy Canada, it would therefore be interesting for them to find a student job to have more money and set savings goals. When they have reached their goal, they will be able to judge for themselves whether the effort put into the job is worth spending on a good or service they wish to obtain. Your teenager is short of money, he spent his budget? Think twice before troubleshooting it.

Supporting your teenager towards financial independence

Why not help your teenager open a savings account. It may even be interesting to introduce him to the different products available for longer-term savings. Even better, suggest a meeting with a financial advisor.

To conclude, our expert, Mathilde F.-Flahaut, CPA, recommends that teenagers read the books by author Pierre Yves McSween, which addresses issues of consumption, expenses that have a direct effect on the bank account as well as than financial freedom and this with a humorous tint.

References

http://w3.uqo.ca/transition/tva/wp-content/uploads/4D3c_Le_guide_financier_adolescents_de_13_à15_ans.pdf