TAMPA, FL (WFLA) – There are a lot of lessons you need to remember to teach your kids but teaching them about money can be one of the most important. Research shows that children’s money habits are largely determined by age 7.
“Kids think money comes from the ATM machines, so we have to teach them that’s not how it works,” says Credit expert Gerri Detweiler of Nav.com.
And starting money lessons early is key.
“With young kids you want money to be very tactile. They want to feel it. They want to count the coins. They want to see it in the piggy bank,” Detweiler said.
Detweiler says parents commonly make two mistakes. The first one is not talking about money.
“The other mistake is not showing kids the importance of things like savings, which is largely invisible to them. They see us spending money. They don’t see us saving money.”
Teaching financial discipline is another important lesson. Offering an allowance can work well with kids who like incentives says Detweiler.
“You want them to make their own mistakes with money before they are out on their own earning a paycheck and the mistakes are much more expensive.”