What is an appropriate age to start learning the basics about money? Should it begin in high school, college, or should it be left until a regular income is established? Or should a basic level of financial education be taught sooner? The general train of thought is that financial education should be made available to children, but disagreements begin over the correct age to introduce the subject.
A 2013 Cambridge University study found that by the age of seven most children have grasped how to recognise the value of money and to count it out. They also understand that money can be exchanged for goods, as well as what it means to earn money and what income is. Most children in the UK are capable of complex functions such as planning ahead, delaying a decision until later and understanding that some choices are irreversible.
“The window is zero to 7,” said Guy Shone, research director for the British government’s Money Advice Service, which published the study. “It’s very hard to reverse those habits later in life.”
What if missed that window is missed? Are children doomed to a life of debt, manipulation by advertisers and various scams they won’t see coming? Not at all. Change may be hard, but it’s possible. However, parents who are trying to teach older children should expect that their job may be a lot harder. Those with younger kids should take advantage of their opportunity to teach children earlier.
The conclusion to be drawn from the study is that financial education should begin before the age of seven. The study reminds us that we need to start teaching good money habits as soon as children understand that money is used to buy things. Financial literacy, if introduced before the crucial age of seven would positively impact young minds at a pivotal period in their development, leading to a lifelong understanding of fiscal responsibility.