Do not underestimate the importance financial literacy kids. Children should be taught how to handle money from the early on. To many young people are in crises situations with debt simply because they never learned basic lessons in money management.
Children should understand how the world of money works from the moment they begin to get an allowance. In the real world no one gives us money for free. We have to earn it and the children should learn this important principle as soon as possible.
Unfortunately, we have got into a habit of spoiling our children. They are rarely required to do chores in the home on any consistent basis. If this is the case in your home you should change it straight away. There are some jobs that need doing regularly that can be done by a child such as taking out the garbage or unloading the dishwasher.
Think about how much you would have to pay someone to come to your house and unload the dishwasher on a daily basis. You can then apply the same or similar amount to your child as their allowance. It must be directly related to the chore. If they do not do it they do not get paid except for holidays and some unintentional sick leave.
Once children are earning their allowance they must also learn other important lessons such as how to save their money and how to save it. A child of any age can have a bank account so you can help yours to get one set up. Through providing financial literacy lessons for students, your kids will learn to manage their account and appreciate the value of seeing savings accrue.
However, as in the real world, some things have to be paid for. It is not to say that you have to offload your parental responsibilities to the child but at the same time the child must understand that he will have to spend some of his earnings on the things he wants. Good financial literacy kids will ensure responsible adults in future. So be sure to teach your kids financial education lessons that will support them as they mature.