A study has shown that by the age of seven they can grasp the lessons they need to learn to avoid financial problems in the future

The early experiences children have with money can shape their financial behaviour as adults, according to a study published by the UK government’s MoneyHelper service. By the age of seven, the University of Cambridge study found, most children are capable of grasping the value of money, delaying gratification and understanding that some choices are irreversible or will cause them problems in the future. The research suggests children who are allowed to make age-appropriate financial decisions and experience spending or saving dilemmas can form positive “habits of the mind” when it comes to money. This could lead to a lifelong improvement in their ability to plan ahead and be reflective in their thinking about money, or they may learn how to regulate their impulses and emotions in a way that promotes positive financial behaviour later in life.