Are you teaching your kids bad money habits?

For a chance to WIN one of two $50 gift vouchers from online kids clothing stores All Things Anhorahble and Zeke Unique, simply tell us below the fun ways you’ve taught your kids about money.

Did you know that financial habits are already formed by the age of seven? Scary thought, isn’t it? Good money management is one of life’s most valuable skills but just how early should we start teaching kids about money?

Kirsty Lamont from Mozo recently appeared on Channel 7’s The Morning Show to talk about this exact issue. And the answer of course is: it’s never too early to start.

Here are some of the top tips that were discussed on the show.

Top 5 Money Lessons

  1. Money isn’t free. It’s earned. Kids need to learn that money doesn’t just magically appear from mum and dad’s wallets whenever they want something.

  2. Small savings add up to big rewards.

  3. Wants are not the same as needs. Parents can start teaching children from a young age that we can’t always have what we want.

  4. Budgeting helps money go further. It’s important to teach kids that budgeting isn’t about the can’t haves, it’s about planning for the things you can have.

  5. It’s better to give than receive. Teach kids that giving can be as good (if not more rewarding) than getting.

Tips for teaching kids good money habits

  • Be a good role model with spending and saving. Children pay close attention to everything we do and the best way to avoid teaching kids bad money habits is to be a good money manager yourself.

  • Don’t just talk the talk, you’ve also got to walk the walk. Your children need to see you show restraint with money and see you budgeting, comparison shopping and putting money into savings.

  • Use play and online games to teach basic money concepts.

  • Get your child to help you when shopping, paying and checking change.

  • Reward first savings efforts. For instance, you could match savings to encourage your kids to save for a particular goal.

  • Help your kids break their pocket money into spending and savings. We all know that when you don’t allow yourself some money freedom it can lead to budget blow outs so it’s important to distinguish savings from other money.

  • Help your child set up a savings account and get them to make their own deposits so that they can feel responsible for their savings. There are a number of kids savings accounts that don’t charge fees and offer good interest, you can compare them all on Mozo here.

What are some of the fun ways you’ve taught your kids about money? Tell us below and you could win one of two $50 gift vouchers from All Things Anhorahble and Zeke Unique.  We’ve got two vouchers to give away for the best answers.

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Are you teaching your kids bad money habits? was last modified: June 29, 2015 by Mozo

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  1. I taught my kids with their school banking each week, they received $5 pocket money & had to bank $1. They were always asked if they had 10c or 20c to add so they could see it add up. When we went on holidays they were allowed to spend whatever they liked. If they wanted 4 icecreams per day thats fine because they were paying. Now that made a difference, they were very frugal and counted the costs each day of what they had left & if it would last the whole holiday.

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  2. I was horrified when my partners 5 year old when told we didn’t have any money said “Just go to the machine and get some”. She now is slowly learning it doesn’t work that way and that we both work hard to get the money we do have. Her school banking every week is a great way to teach her the value of money, if she does what we need her to do, teeth, dirty clothes in laundry basket, keep room tidy, for the whole week without being asked more than twice then she gets a bigger amount to put in the bank. We always ask her how much she thinks she deserves this week and surprisingly she can often be her harshst critic. Next step we are going to introduce her to savings & spendings. At the moment we just trying to instil in her that working hard is the only way to get money

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  3. Some great tips there, thank-you!

    We’ve started teaching my eldest daughter who’s just turned 5 about saving. We gave her a Barbie moneybox at Easter that counts the money as she puts it in.

    At the moment she’s saving for a Dreamlites Pillow Pet and a new pair of boots. Originally she figured that if she asked daddy very nicely he would just automatically give her money (which he sometimes fell for!) but we’ve since introduced a star chart for chores so she can earn her pocket money instead.

    Each different coloured star sticker is worth a certain amount and the colour given depends on the difficulty of the chore performed. She loves earning her special star stickers and is learning that hard work gets rewarded, how money works and about the benefits of saving for the things she wants or needs. 🙂

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  4. My daughter was four and wanted a DS six years ago. She was told that if she could do extra chores and saved $150 in two months that she would have enough to buy one. She worked really hard helping out with jobs and asked for extra chores so that she could get to her goal really quickly. She even asked aunties for jobs like sweeping up etc and was really happy when they said yes. every time she did a chore we marked off the amount that she was paid for it until she reached the final target of $150. She was really proud of herself and extra pleased when her DS was handed over. She is frugal with money and will even ask if she can get a discount items and when buying a few things at the shops she keeps a mental tally and decides along the way if she really wants to part with her hard earned cash. Both my kids know what a hard days work means and are happy to put in the effort if there is or isn’t a cash reward offered as they know effort is appreciated and a cash bonus is always a lovely surprise.

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  5. I pay everything on credit card then pay it out at the end of the month – this helps me keep track of my spending. They understand the concept of spending and saving but this doesn’t seem ideal when my 8 and 10 year old are watching me press the ‘credit’ button. So I have taught them two key things. Don’t spend money you don’t have. ALWAYS pay your credit card by the due date or you will pay extra. I also show them the payment details on my statement and how much extra would need to be paid if they make only the minimum repayments. This such a simple message and they easily understand it.

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  6. Wealthy people teach their children about money. The apple doesn’t fall far from the apple tree. If you don’t instill good money habits into them who will… schools? society? This article has good principles where we can easier start from. Thank you

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