I remember reading Rich Kid Poor Kid by Robert Kiyosaki and he stated that most children learn better by playing games. So when is actually the best time to teach kids about smart money habits? I feel that we start teaching money as a life skill as early as their pre school years. But you know your children better than anyone else.
However, Robert Kiyosaki advises that we should not let our children think that they are entitiled to an allowance. Instead, teach them to view the allowance as earned compensation for the completion of certain tasks or responsibilities.
I teach children about saving by introducing them the ‘Three Jars system’. One is for quick change, from which they can take money out and spend it on whatever they want. The second jar is for medium term savings, in which they save for a larger purchase.
And of course the last jar is for long term savings, that is for their college or tertiary education. This will teach them delay gratification and get them into the habit of saving.
