Teaching your kids about money can be difficult, but is important. Here are some tips for kids of different ages.
Ages 3-5
Around this age children will need to learn the basics of an economic system. Teach them that money lets you buy items you need, you get it by working and that sometimes you have to wait to save up for something big. Playing shops with fake money is a good way to role play the practice.
Ages 6-10
Give your child a set budget to buy something like a birthday present for a friend. The experience should teach them to shop around to find the best price. You could also open an online savings account for your kid. Use the opportunity to educate them on the dangers of providing your bank details to someone else, and to show them how they can earn interest through their account.
Ages 11-18
Children will need to learn the value of saving, the dangers of credit cards and the impact of paying more for school fees. They’ll also be old enough to hear about superannuation and how the tax system works.
Aged 18+
For a young adult you’ll need to explain the dangers of credit again, the importance of a three-month emergency fund and teach them to assess risk.
Source: http://www.lifehacker.com.au/2013/08/how-should-i-teach-my-kids-about-money/
