Parents’ attitudes and behaviours towards money influence their children from a very young age, according to the UK’s Money Advice Service.
A recent Cambridge university study found that children as young as seven had developed the financial knowledge and behaviours that would influence their money decisions as an adult.
The study showed that many children are able to count money and understand the concepts of buying and value by the age of seven. They also know about income and earning money, as well as planning ahead and delaying decision-making until later. However, the study suggested that children under eight were not yet able to understand the concepts of essential and nonessential purchases.
David Whitebread, co-author of the study at Cambridge University, said that the behaviours of parents and other adults in a child’s life with regard to money can help to influence the lifelong financial behaviours of the child.
Source: http://www.theage.com.au/money/planning/financial-habits-formed-by-age-seven-20130524-2k51y.html
