Money Matters: How financial literacy can have a big impact on your child's future

With Russia at war with Ukraine, Elon Musk buying Twitter and Rishi Sunak becoming UK's Prime Minister- the world is going through a colossal shift financially. And in a world where almost anything and everything has a financial impact, financial literacy just cannot be ignored.?

But when you think of financial literacy, do you imagine your child learning about it in college, or during their first job? If you did, think again.?

What is the right time to teach your child about money? Ask any kindergartener and they will tell you money comes from mommy’s purse, daddy’s wallet, a plastic card or the bank machine.?

As social learners, children have already been observing your financial habits and gathering an understanding of beliefs and values around money. They are very likely to mimic this behaviour in their own play as they learn to share and barter their toys with friends.

Our children learn best when they understand the meaning of concepts and own their learning.

According to research conducted at the University of Cambridge, children’s financial habits are typically set by the age of seven!?

What begins as counting objects when they are 2-3 years old leads to distinguishing between counting words and other labels. By 4 years old, children make one-to-one correspondence and transfer knowledge to the concept of money.?

As global citizens, financial literacy goes beyond currency and banking with an understanding of limited resources that affect the production, distribution and consumption of man-made and natural resources.?

In a world as dynamic as ours, our children need to adapt to excel just as quickly.?

Why wait until high school economics class to learn the basics about the importance of personal finance and financial planning?

At Stellar, we start financial literacy with our learners as young as Nursery to ensure that good money habits are inculcated in the right way.?

What do you feel about financial literacy? How important do you think it is in the formative years of your child's education??

Let us know in the comments!?

About the Author

Dr. Anne E. Crylen, PhD

Head of School at Stellar W School, Andheri

PhD Educational Leadership

M.Ed Special Education

Dr Crylen is an education advocate with 20 years of leadership experience globally. She has taught and led public and private schools in Chicago and Shanghai, China. She was an educational adviser in Niger,? West Africa and a Fulbright Scholar in Cambodia. She brings her passion and focus on equity for all students including those with special needs through research and practice. She is currently the Founding Head of School at Stellarworld School in Mumbai, India.?