Kids Develop Money Habits By Age Seven

Kids develop money habits by the time they’re seven, according to recent research from Cambridge University. And that means that parents’ financial styles have an influence on their kids own fiscal skills well into adulthood.

Backed by London’s Money Advice Service, a free financial-literacy organization, the “Habit Formation and Learning in Young Children” report found that by age seven, most kids recognize the value of money and know how to count it out. They also understand that currency can be exchanged for goods and what it means to earn money.

Furthermore, most kids are capable of complex functions such as planning ahead, delaying a decision until later, and understanding that some choices are irreversible.  Read More…

This article has 11 Comments

  1. Demarion B.

    This isn't too much of a surprise. Our children learn about finance by watching and mimicking us as we do our investing, taxes, etc. I also believe it is a socioeconomic thing too. The more comfy the family is the more likely the kids will look to think about money sooner.

  2. Theodore

    Or better yet, why have kids? How about adopting and teach them the ways of the Oracle of Omaha?

  3. Landyn D

    I really like this because it gives me new hope that our future leaders will be in better shape to continue our great country because looking at the mess the US has caused we are bound for a collapse. Especially since the Canadian house bubble is about to burst.

  4. Case

    Now if we can just get these kids to put it into practice when they become adults.

  5. Gerardo

    Why don't schools teach such critical advice? We are stuck reading Shakespeare when we should be learning more important things like finances. *shrug*

  6. Damion

    The only time i see my kids think about finances is if gta deals with it. 🙁

  7. Lindsey

    All my dad taught me was the moment you got paid from work you head over to the liquor store to drink it away. And this is why i a pennyless today.

  8. Terence

    But yet why are so many Canadians in severe debt?

    What's the point of money habits when it doesn't help most of them in the end?

  9. Reegan

    The real problem is that kids and young adults feel since they are young they have all the time in the world to worry about such things so they wait, and wait until its too late. I should know – i was the same way. 8)

  10. Nicholas H.

    I think it is important that every parent teach their kids at least a little about saving, and the bare minimum terms because as they age they become les and less responsible and think it isnt as important since their parents never cared. If you have kids PLEASE do your job as a responsible parent and teach them!

  11. Cortez F

    Savvy investors became such because they started learning about proper money management at an early age.

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