{"id":370036,"date":"2024-04-20T08:00:00","date_gmt":"2024-04-20T12:00:00","guid":{"rendered":"https:\/\/milesopedia.com\/?p=370036"},"modified":"2025-12-17T13:32:27","modified_gmt":"2025-12-17T18:32:27","slug":"children-personal-finance","status":"publish","type":"post","link":"https:\/\/milesopedia.com\/en\/personal-finance\/children-personal-finance\/","title":{"rendered":"Introducing your children to personal finance"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text css=””]<\/p>\n

Parents of young children and teenagers play a key role in their financial education<\/strong>. Children won’t adopt sound financial habits unless they’re taught. And, in my opinion, teaching personal finance is just as important as reading, writing, and mathematics. Whether we like it or not, money plays an important role in life<\/strong>. Ideally, we should start talking about money and integrating financial education into our daily lives as early as possible. And since children often seek to imitate adult behavior, parents must start by setting an example<\/strong>.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

These are just a few of the tips that will be covered in this article. In addition, we will explain how to introduce your children to personal finance<\/a> according to their age, with the help of educational games, children’s books, documentaries and various initiatives.<\/p>\n

[\/vc_column_text]

\t\t\n\t\t
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>\t\t<\/div>\n\n\t\t<\/div>[\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Adapting learning to your child's age” css=”” el_id=”adapting_learning_to_your_child_039_s_age”][vc_column_text css=””]<\/p>\n

Learning financial management takes several years. The earlier you start, the more likely your children will adopt sound financial habits and become savvy consumers in adulthood. Of course, financial management lessons<\/strong> should be adapted to your child’s age<\/strong>. On the one hand, young people learn quickly with games, but on the other hand, teenagers learn through practice and the application of learning.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

In the following paragraphs, you’ll find out how to adapt personal finance<\/a> teaching to your child’s age.<\/p>\n

[\/vc_column_text]

\t\t\n\t\t
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>\t\t<\/div>\n\n\t\t<\/div>[\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Financial education for children” font_container=”tag:h3|text_align:left” css=”” el_id=”financial_education_for_children”][vc_column_text css=””]<\/p>\n

First, remember that the goal is for your children to develop healthy financial habits as early as possible in their lives<\/strong>. It’s much easier to instill a good habit than to change it in adolescence or adulthood.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

So, from the age of 3, you can play role-playing games <\/strong>(e.g. cash register) and educational games (e.g. Monopoly Junior). You’ll find examples of games in the next section, “Fun and educational games”.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

You can incorporate money lessons<\/strong> into everyday family activities like grocery shopping, going to the bank or shopping for back-to-school clothes. As a general rule, children retain learning from personal experience more easily.<\/p>\n

[\/vc_column_text][vc_single_image image=”369799″ img_size=”large” alignment=”center” style=”vc_box_rounded” css=””][vc_column_text css=””]<\/p>\n

From the age of 8, you can teach your child to take advantage of discounts and promotions<\/strong>. You can also involve him\/her in family decisions that involve financial choices<\/strong>, such as buying a new car or taking a trip.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

In addition, you can give your child a littlepocket money<\/strong> and let him or her make mistakes. It’s better to make a mistake on a few-dollar toy than on a several-thousand-dollar purchase when you’re an adult.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

Finally, you can explain the difference between a need<\/strong> (eating) and a desire<\/strong> (buying a new video game).<\/p>\n

[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Financial education for teenagers” font_container=”tag:h3|text_align:left” css=”” el_id=”financial_education_for_teenagers”][vc_column_text css=””]<\/p>\n

For teenagers, the goal is to help them become adults who will be able to manage their personal finances well and avoid debt.<\/strong> <\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

So when your young children are teenagers, you can start talking to them about budgeting<\/a>. Then you can take the opportunity to open a bank account<\/a>.<\/p>\n

[\/vc_column_text]

\t\t\n\t\t
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>\t\t<\/div>\n\n\t\t<\/div>[vc_column_text css=””]<\/p>\n

In addition, you can help your teen set savings goals<\/strong> (e.g., buying a new mountain bike). Don’t hesitate to explain the difference between needs and wants, and the resulting budgetary choices. But also, the concept of indebtedness<\/strong> when talking about payment by debit or credit card<\/a>. This is an important subject, as children are less and less exposed to cash.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

If your teenager has started working part-time, take a few moments to sit down with them and help them understand their first pay stubs<\/strong>. You can use this opportunity to explain taxes<\/strong> and social contributions<\/strong> (redistribution of wealth).<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

Finally, if you’re saving in an Education Savings Plan<\/strong>(RESP<\/a>), you can discuss the subject of post-secondary tuition fees<\/strong> with your teen.<\/p>\n

[\/vc_column_text]

\t\t\n\t\t
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>\t\t<\/div>\n\n\t\t<\/div>[\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Financial education for young adults” font_container=”tag:h3|text_align:left” css=”” el_id=”financial_education_for_young_adults”][vc_column_text css=””]<\/p>\n

Your child is now a responsible young adult<\/strong>. But financial education is far from over. The goal is therefore to explain more advanced financial concepts that will have a significant impact during their adult lives.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

If your child is a post-secondary student, you might suggest opening a student chequing account<\/strong>. For example, BMO’s Student Performance Chequing Account<\/a> or Scotiabank’s Student Banking Plan<\/a> have no monthly fees while you’re in school.<\/p>\n

[\/vc_column_text]

\t\t\n\t\t\n\t
\n\t\t
<\/div>\n\t<\/div>\n\n\n
\n\n\t
\n\n\t\t
\n\t\t\t
<\/div>\n\t\t<\/div>\n\n\t\t
\n\n\t\t\t
\n\t\t\t\t
<\/div>\n\t\t\t\t
<\/div>\n\t\t\t<\/div>\n\n\t\t<\/div>\n\n\t\t
\n\t\t\t
\n\t\t\t\t
<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n<\/div>\n\n
\n\n\t
\n\n\t\t
\n\t\t\t
<\/div>\n\t\t<\/div>\n\n\t\t
\n\n\t\t\t
\n\t\t\t\t
<\/div>\n\t\t\t\t
<\/div>\n\t\t\t<\/div>\n\n\t\t<\/div>\n\n\t\t
\n\t\t\t
\n\t\t\t\t
<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n<\/div>\n\t\t<\/div>\n\n\t\t<\/div>[vc_column_text css=””]<\/p>\n

Normally, with the financial education you’ve given your child, he or she shouldn’t have any consumer debt<\/strong>. But if they do, explain why it’s better to pay off debts<\/a> as quickly as possible.<\/p>\n

[\/vc_column_text]

\t\t\n\t\t
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>\t\t<\/div>\n\n\t\t<\/div>[vc_column_text css=””]<\/p>\n

If your child is passionate about personal finance, they can read websites, blogs, and join groups and communities on social media. I am thinking in particular of the private groups Milesopedia<\/a> and EducFinance, L’argent ne dort jamais<\/a>.<\/p>\n

[\/vc_column_text][vc_column_text css=””]<\/p>\n

Finally, you can explain to them the concept of compound interest<\/strong><\/a> as well as tax-advantaged accounts,<\/strong> such as the FHSA<\/a>, the TFSA<\/a> and the RRSP<\/a>.<\/p>\n

[\/vc_column_text]

\t\t\n\t\t
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>
\n\t
\n\t\t
<\/div>\n\t<\/div>\n\t
\n\t\t
\n\t\t\t
<\/div>\n\t\t\t
<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/article>\t\t<\/div>\n\n\t\t\t\t\t