If you’ve got children, one of the most important things to teach them is money management. As I mentioned in the about me section, I started learning about the stock market from looking at the charts in the Globe and Mail when I was seven years old. However, I was introduced to money from a very young age, and feel that’s a lot of the reason why I take such care of my finances. Here are some of the lessons I was taught as a child and that gave me the financial basis which has resulted in my financial independence:

When I was six and in the second grade, quite possibly one of the few things the disaster of a teacher that I had taught us was debits and credits. We had to buy and sell fake items with fake money, and then list them as debits and credits in a little book we had. It taught us to trade and the importance of keeping a positive balance, as if we ran out of money we couldn’t get any more goodies without selling something. This was such a simple exercise, and yet it taught us at six years old to take care of our money.

One thing that my mom did which I found to be really helpful was make me buy stuff at the grocery store myself. If I wanted to get a chocolate bar, she would give me a 2 dollar bill (remember those?) and I would wait until she was finished and run the transaction through as my own. Handing the teller money and having her give me back change when I was little helped teach me about spending money in exchange for an item I wanted.

I opened a savings account when I was 12 years old. Having a debit card was a big thing at that age, and it encouraged me to save my money so that the balance in my account would grow. If there was one thing I could add, it’s that I would allow children to access online banking, as it gives them another outlet to see just by how much their balance has increased and make them feel more like an “adult” who gets to look at their money on the internet.

Let kids make spending mistakes. If they make their mistakes young, the effects won’t be as severe as if they make their first mistakes when they’re older.

I was always taught that debt was bad, and that credit cards are ALWAYS to be used in emergencies only. Stressing that credit is bad and saving/investing is good is one of the most important lessons you can teach kids before they get let loose in the world. Otherwise, there’s a good chance they’ll find themselves unable to pay $3 000 in credit card debt. You can’t baby them forever, and making sure they know what they’re doing financially from a young age is a great way to ensure your children remain financially responsible for the rest of their lives.

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