My nine-year-old son recently wrote a powerful e-book about the significance of giving and volunteering. He expressed that in the act of giving, one becomes rich in the well-being of others, and that money doesn’t have to manage you. This inspired us to incorporate giving and volunteering into his routine.
Research from Cambridge University has revealed that our approach to money is essentially set by the age of seven. Behavioural experts reviewed previous studies to understand how children learn in general, particularly about money.
They concluded that money habits, including the ability to plan ahead, are typically formed in early childhood. The study found that most people’s money habits are established between zero and seven years of age. Once formed, it can be difficult to reverse those habits later in life. This study, along with my own experiences, highlights the importance of parental impact on a child’s financial mindset.
Messages about money in early childhood, along with pro-social behaviors such as giving, helping, and volunteering, will shape adulthood by fostering a broader perspective beyond oneself. When a young child acknowledges that everyone has something to givebe it time or resourcesa shift occurs.
Instead of instilling fear about money or its complexity, we can keep it very simple by encouraging children to focus on passion or a cause they want to support, which breeds opportunities and optimism. Parents must be reminded not to let their own negative experiences with money influence their child’s beliefs about what their financial future can be.
In my personal quest to advocate for the financial empowerment of women, it’s increasingly recognised that this empowerment also extends to children. By creating an environment that encourages dialogue and learning, we set the stage for future generations. Encouragement acts as a catalyst, helping children engage with financial literacy and become active participants in this important movement.
Children, despite their vulnerability, are essential agents of change. They play a pivotal role in shaping the future narrative around finance. Teaching them good money habits and generosity is crucial. This foundation not only benefits them individually but also contributes to a broader societal shift towards financial literacy for all.
As a Christian family, it didn’t surprise me that my children now see giving as part of their financial vocabulary. However, to truly make a mark and live through our values, volunteering is our chosen way.
If you care, take action by finding joy in people and passion before you start making money. My son has helped me shift from being an overly cautious mother to a more confident one, reminding me that navigating money conversion with children requires staying whole. Research shows that children taught financial literacy from a young age have better chances of becoming financially responsible adults.
Sarah Stephen is a Luxury Real Estate Advisor advocating for women’s financial freedom.
