According to a recent report by Cambridge University in the UK, children start to formulate money habits as young as age seven. Therefore, it is clear that the more parents can teach their offspring early on, the better chance they have of becoming financially savvy adults. Here are six useful tips for making kids cash smart:
Tip 1: Lead by example
Parents are the greatest role models any child will have when it comes to financial awareness, so what they see you do really matters. “Leading by example is just as important as telling your children what to do,” said Hamzah Shalchi, Regional Manager at Guardian Wealth Management in Dubai. “They will look to copy your money practices until they are old enough to make informed choices, so show them how to be responsible. For instance, my parents always paid cash for big ticket items such as cars rather than getting them on credit, which has meant that now that I am an adult I always assess whether I can actually afford something before I purchase it, rather than racking up unnecessary debt.”
