While my oldest child is only 3 ½ I am already thinking about how to introduce money concepts to her. She isn’t that young as she already understands cents versus dollars. Before I know it, she will be getting a weekly allowance. I think this is one of the most important first steps in understanding money management. I think the ideal age is 6 – 8. Here is my tip to make sure your 6 – 8 year old understands how to manage their money. Make sure that when you start giving them an allowance, you also use a piggy bank that forces them to save a portion at the same time. Plus, you can also create another piggy back where all the contributions go to the charity of their choice (including the animal shelter down the street!). It isn’t too early to teach them about saving, giving to charity and spending what they can afford.
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