Money doesn't appear by magic, and neither does financial wisdom. Building a solid foundation for financial understanding needs to start early in a child's life. According to experts who spoke with Hola!, teaching children about financial literacy before they enter high school isn't just beneficial—it's absolutely essential for nurturing confident and capable adults, especially in an era dominated by digital wallets and social media-driven spending.
Building Blocks of Financial Confidence
Starting financial education young helps children perceive money as a practical tool rather than an unsolvable puzzle, explained April Lewis-Parks, the Director of Financial Education and Communications at Consolidated Credit. She emphasised that conversations about money should not be a single event but a continuous process that evolves as the child grows.
So, when is the right time to begin? "As soon as kids can count," Lewis-Parks stated. For very young children, this means simple activities like identifying different coins and understanding that the things they want require money to purchase. By the time they reach middle school, parents should introduce more complex ideas like creating a budget, distinguishing between needs and wants, and the basic concept of credit.
Cara Macksoud, a Financial Behaviour Specialist and a mother of five, strongly agrees with this progressive approach. "Even toddlers can handle money with supervision," she noted. She recommends taking children aged six or seven to a bank to deposit their savings. By age eight, she advises giving them controlled access to small debit cards to learn responsible spending.
Her methodology is deeply rooted in hands-on experience. "By high school, they should understand how to track balances, reconcile accounts, and use a debit card responsibly," Macksoud told Hola!.
Navigating the Digital Spending Landscape
The shift to digital money presents unique challenges for modern parents. Lewis-Parks pointed out that when a purchase is just a click away, children don't experience the same tangible feeling of spending as they would when handing over physical cash. To make digital finance feel more real, she suggests showing children bank statements, tracking account balances together, and setting clear spending limits.
On the powerful influence of social media, Lewis-Parks was unequivocal. "Social media has become a shopping mall without walls," she said. She warned that influencers often normalise overspending and can make debt appear glamorous. Because of this, she asserts that teaching media literacy is now an inseparable part of teaching financial literacy.
A Shared Responsibility Between Schools and Parents
Lewis-Parks believes that schools have a critical role to play and need to modernise their curricula. She recommends that children be taught about credit scores, the practicalities of online banking, and how social media algorithms can influence spending habits. She also highlighted that a strong sense of financial responsibility can contribute to better cybersecurity practices.
Echoing the need for practical application, Tom O’Hare, a holistic college advisor, told Hola! that schools should collaborate with finance professionals. He proposed initiatives like having students participate in a "Credit for Life" simulation before graduation, forcing them to confront realistic financial decisions. O’Hare also reassured that even parents who are not entirely confident in their own financial knowledge can still provide valuable lessons to their children.
As April Lewis-Parks perfectly summarised, "The earlier kids see money as a tool, the better prepared they’ll be to use it wisely." Instilling this mindset from a young age is the key to raising a generation that is financially savvy and secure.
