Is it ever too soon to teach your children about finance?

Each and every one of us will have been through difficult financial situations in our lives, we will have been short of money at some time, we will have overspent but ultimately we should be passing on these experiences to our children. It is never too soon learn to start to teach your child about finance, about the value of money and the cost of living although you do need to be careful about how much detail you go into and try not to over elaborate.

If we can pass on even a small fraction of our own financial experiences to our children, over a prolonged period of time, then hopefully they can avoid some of the pitfalls we have experienced. Teaching your child the value of money at an early age can be one of the most important things you can do for them. Children of today tend to grow up quicker than those of the last decade, demand more and more money and become the target of highly focused and highly aggressive marketing campaigns.

While it is normal for a child to ask for something they like from example a TV advert or a magazine ad, we need to appreciate that as much as we may want to spoil our children they need to learn the value of money and the word "no". If your child has even the remotest understanding of finance when they move into their teenage years you have given them a very valuable lesson for later life.