Teach your children about saving and investing

According to a recent article in the Globe and Mail, the average child between the ages of eight and 13 is exposed to some 40,000 commercials per year. With so many commercials vying for your child's attention, it's almost never too early to teach your child about responsible money management.

According to an article published online by the B.C. Council for Families (BCCF), "By far, most of what children learn about money concepts comes from what they observe us doing,."

Age-appropriate information and exercises
Start teaching your child about money when they first begin asking about it, often around the age of three or four, says the BCCF. The concept of money is a bit abstract for most preschoolers, but you can make it easier to understand by giving them an allowance.

"Since kids at this age need to see and touch their money, start by giving it to them all in coin, and to start with, the same coin," says the BCCF. A good exercise for kids this age is to decorate three jars or cans, then label them with symbols that stand for: Spend, Save, and Share. Their coins go into the three jars in proportions that depend on the money values you want to teach.

By the early elementary school years, kids are getting into more "hard-core consumerism," says the BCCF, so this is a good time to talk to them about how to make good choices. Help them open a savings account and talk about longer-term savings goals. During the late elementary years, sit down together to create a budget that includes spending, sharing and long-term saving.

When your children are in high school age, consider introducing them to what your family expenses really look like, says the BCCF. "Give them some real insight by having them make all the deposits and write all the cheques for a month. Show them how to reconcile a bank statement and talk about why you choose to pay things at certain times."

For fun and information
You and your children might have fun with the money exercises and games on these websites — and learn something while you're at it:

    * www.younginvestor.com is a website for parents, teachers and children of all ages with educational exercises

    * http://www.kidsmoney.org/ is a website in six languages offering articles, games and exercises for kids and parents

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