One piece of advice that always comes up when it comes to financial education and children is not to make money a taboo subject, and to talk about it even with the youngest.
Published at 5:00 a.m.
Is it really the role of parents to talk about money? It seems so: according to a survey carried out by ÉducÉpargne, 55% of workers aged 25 to 64 identify their parents as being the people who have influenced them the most in the management of their personal finances.
Primary school is a good age to start talking about money – before that, it’s a little early. “It’s especially from the 2e year, around age 8, that they will understand the concrete meaning of money and make connections with their mathematics lessons,” indicates Nathalie Parent.
You can then decide to offer your child – or to tinker with him – his first piggy bank, in which he can accumulate the few dollars coming from his parents and grandparents (or even the tooth fairy).
Obviously, young children better understand concepts like limits and choices when they are illustrated by concrete cases.
The classic example: taking your child to the convenience store with a budget of $5 and letting them choose $5 worth of candy. If he arrives with $6 worth of treats, no, he has to make another selection. “The child will make trials and errors, but he will understand that he cannot have everything he wants,” explains Louis-Alexandre Lacoste, general director of ÉducÉpargne.
It’s also a good age to learn to differentiate between needs and wants, to understand that the former (food, house, clothes) will always come before the latter (gifts, trips).
Moreover, the Bank of Canada Museum offers an educational activity on its website for children aged 5 to 8 to address this subject.
Visit the Bank of Canada Museum website
As the child gets older, new concepts can be added. At the store, it can help us determine which of two products costs less by reading the labels. We can explain why we choose one item over another, the concept of a promotion or even the payment method we use.
Jason Leung, vice-president at De Champlain Financial Group, always wanted to explain the main economic mechanisms to his children, even when they were very young.
PHOTO PROVIDED BY JASON LEUNG
Jason Leung is a financial security advisor, vice-president of De Champlain Financial Group, and group savings representative with Investia Financial Services Inc.
For example, I explain to them that the City pays the garbage collector who comes to collect the garbage, clearing snow or even planting flowers in the neighborhood with money that comes from our taxes. I find it interesting to make children aware of how the economy works.
Jason Leung, vice-president at De Champlain Financial Group
If some believe that primary school is too early to talk about savings with children, this is not the case: he has always encouraged his family to put 10% of their money aside for future projects.
A small job from primary school?
The minimum age to work in Quebec is 14, but there are some exceptions. For example, with their parents’ permission, a young person can deliver newspapers, babysit occasionally or provide tutoring.
Some children show the desire to work at a very young age. “Some have a taste for money, are very physical, want to help… Why not? It can be very rewarding to help clear snow from a neighbor’s or family’s driveway, with an associated amount,” notes Nathalie Parent.
However, you must ensure that the child only does it if he really wants to.
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