How to Raise a Money-Wise Child

HOW TO RAISE A MONEY-WISE CHILD

Age 3-5

In this age group, children have begun pre-school or

nursery and are on their way to kindergarten. They are able

to recognise numbers and the alphabet, and it’s time to start

learning about the root of financial responsibility:

cash

Cash is king

This is where it all starts. Cash is the basis of all budget-

ing and financial responsibility. Not only that, to accoun-

tants and business people, the cash flow statement is all

important. In fact, of the three financial statements (cash

flow, income and balance sheet) examined by accountants,

cash flow is the first one accountants study in training and

emphasise and use in practice.

Think about it: How could any business operate without

cash for rent, employee salaries, advertising, legal advice,

product development, photocopies, long distance calls and

all other business expenses? It’s the same for families: fami-

lies need money for rent and other expenses of daily life.

To teach your children how to responsibly manage money

from an early age is to teach them an indispensable life skill.