Teaching Dollars and Sense To Your Children

Children may learn reading, writing, and arithmetic in school, but one big gap in their education is often how to handle finances as they make the transition into adulthood. Maybe your five-year-old doesn’t need to invest in the stock market, but children of all ages can benefit from the fundamentals of money management.

Four Quarter$ is a local company that teaches financial literacy to children one step at a time. They offer a variety of products, workshops, tele-classes and tutoring programs for parents and children of all ages and stages of development. Vancouver moms Ruth Kewin, Dorthe Davison, Jane Gibson run the company based on the four pillars of good money management:

Pay yourself first

Spend wisely
Save regularly
Give intentionally

They believe that creating intentional lessons around money is important – starting young and providing experiences that allow them to acquire healthy, positive habits.

At what age do you start teaching children about money?

As soon as they come along with you on a shopping trip. As soon as they start asking for things that cost money.

Should you give children an allowance?

Money already comes to children in a multitude of ways (including gifts, grandparents, scooped off the bedside table, rewards). Giving an allowance is a personal choice for parents and there is no right or wrong decision. However, in our opinion, by giving an allowance we are providing a structure and consistency in our children’s exposure to money. This structure allows for more effective teaching. It provides a more effective platform to build positive habits.

How much allowance should I give?

How much allowance to give is also very personal. A common suggestion is a loonie for every year. For example, if your child is 6 years old then $6.

How do you include “values” in the conversation about money?

When you use the four pillars to divide up your money, values become part of the conversation. How much will you pay yourself? What are going to spend your money on? What are you saving your money for? To whom are you going to give your money? There are many opportunities to take advantage of these “teachable moments.”