Why is it important to teach young children about money?

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Children learn many of their personal habits and builds their relationship with money at a young age. The sooner a parent or guardian teaches their child about money the easier it can be to have specific conversations about finance with your teen or college age child.

A child is very open to learning new things and the rate they absorb information is quite remarkable. If you’re not teaching your child about money, they will learn it from observing your relationship with it, from other people and will likely be strongly influenced by marketing tactics.

Teaching your child about money at a young age and into adulthood can provide you comfort. It may give you peace of mind that your child has not adopted your bad money habits and they will be financially secure and independent.

Asked in Elizabeth, NJ on March 4th, 2015 in Children.
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The highest impact and most consequential years for learning are from around month seven of pregnancy to around age seven, perhaps younger. That is when mindsets, attitudes, and habits are being formed. Here’s what research tells us:
i. Children begin learning in the womb. Reference Penn State article – Can babies learn in utero?
ii. Young children are exposed to a truckload of television and other forms of advertising. Reference University of Michigan statistics on “Television and Children” and New York Times article “How advertising targets children.”
iii. Adult money habits are formed by age 7. Reference University of Cambridge Study
iv. Americans’ savings rates are regularly low. Reference NY Times article “The Dangerous State of Americans’ Savings”
v. Teens lag in financial literacy know how. Reference Yahoo article citing the Organization for Economic Cooperation and Development Program for International Student Assessment findings.
So, if you want to shape lives and have lots of consequential impact, start early.
Sam Renick Newbie Answered on March 4, 2015.
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