Teaching kids how to manage cash

Mozo

Tuesday 23 June 2009

A child can be taught to understand money as soon as they learn to talk, one financial adviser has claimed.

Speaking to Adelaide Now, Jacquie McCarthy insists that as soon as a child can say "I want", they can start to understand the importance of managing money.

"The moment they start asking for things, that’s when they should be made aware. If they are old enough not to swallow it, they are old enough to learn how to start saving it," she claimed.

Ms McCarthy went on to state that child savings accounts should be introduced from the age of seven or eight, while allowances should not be introduced until a kid is at least five.

Meanwhile, Bernie Lewis Home Loans executive chairman Mark Lewis urged parents to bring back the piggy bank to get kids saving from a young age.

Mr Lewis echoed comments made by Herald Sun contributor Bernald Salt, who warned that the days of free and easy credit from the bank of mum and dad are well and truly over.

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