Kids’ finances: Start early

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How many years are available to you to help that newborn baby to form good financial habits? Only 7 years, according to a May 2013 study from Cambridge University. The study found that by age 7, children develop preferences and tendencies around delayed gratification, saving for later, self-control and awareness of emotions—all foundations of good financial behavior.

To foster good habits, researchers suggest that you make sure that your kids have experiences with money early. For instance, you should have children help to make shopping lists, and then you should talk about which items are most necessary. Also, allowing children to take on small jobs around the home demonstrates the concept of trading time and effort for money, researchers say.