Before primary school age, small children can handle money and learn what the different coins and bills look like. They can be taught that two fifty cent pieces will make a dollar, and that five one-dollar coins will be the same as a five dollar bill. Give them small amounts of money and let them hand it over to the clerk for that chocolate bar or apple. They will get a rudimentary understanding of the purpose of money.

As they move through their primary school years, and their maths skills begin to develop, they can be taught to add up their choices and to stay within an allowance. If they are having trouble with their money disappearing, help them by writing it all down on paper.  When they see where their money is going they will learn to say no to some choices.

In late primary or high school they might take on a responsibility with their allowance. Have them become responsible for budgeting out of the amount you give them each week. Let them buy their paper and pencils - or do without if the money is spent indiscriminately elsewhere.

Also at this age they can be allowed to accept small jobs at home or in the neighborhood to increase their income. Babysitting is very popular, as is doing yard work or pet sitting. Regardless of how they are earning their money, show them on paper how much this adds up to in a month or year. Let them start a savings account and teach them how to put money back to save for special things.   

If their skills and grades are good by the time they reach high school, let them work after school and on weekends to pad their wallets.

Turn their clothing budget over to them if they are able to shop responsibly. Let them handle as much of their daily expenses as possible. Now is the time for them to begin banking with a debit card. How well they handle this will determine if they are mature enough for the responsibilities of a credit card.

Slowly learning all the skills necessary in handling money responsibility will ensure that your child can make the proper decisions when needed and that they will not be guided by the temptation to make impulse purchases or fritter away their money.

By Rachel Goodchild

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