Teaching Your Kids About Money: When and How to Start

Full article here by the Canadian Press available here.

Parents frequently ask me how to navigate the shift toward digital currency with their children. Money has become increasingly invisible. When we tap our phones or cards at a restaurant, our children do not see a physical exchange of cash. This lack of visualization makes it difficult for them to understand that items are not simply free.

Recently, I had the opportunity to share my insights on this exact topic with The Canadian Press. Opening a bank account is a highly effective way to make modern financial concepts real for young minds. Here is my direct guidance on how early financial education sets the stage for a secure future.

When should you open a bank account for your child?

Parents should consider opening a zero-fee, joint bank account for their children between the ages of five and nine. 

At this developmental stage, children naturally begin to understand basic math and the concept of trade-offs.

The exact timing depends heavily on your child's unique temperament. Some children are naturally inclined to save, while others want to spend everything immediately. If your child is prone to impulse spending, you will want to monitor the account more closely. Ultimately, giving them a safe environment to learn is crucial. It is beneficial to let them make minor financial mistakes when they are young and the stakes are low.

Smart Banking Strategies for Young Savers

How does a child's temperament dictate their banking autonomy?

A joint bank account is the best starting point, because it provides parents with oversight while granting the child ownership. When determining how much autonomy to give your children, I recommend parents avoid hovering too closely over every transaction. Allowing them to manage their own small funds—even if they make a poor purchase decision—teaches natural, real-world consequences.

Why is zero-fee banking essential for children?

Parents must strictly look for bank accounts with zero fees to protect their children's small savings from being entirely wiped out by automated charges. Young kids live in a digital world and will likely rely on transactions like Interac e-transfers. Because monthly account fees or transaction costs will quickly deplete their balance, zero-fee structures are mandatory to keep the educational experience positive and encouraging.

What are the best practices for making digital money feel tangible?

Parents should regularly sit down with physical cash to explain exactly what money represents. Even in a cashless society, using physical bills and coins a few times a year bridges the gap between a plastic card and the actual value of a dollar. If a digital bank account feels too advanced for a five-year-old, a traditional, physical piggy bank remains an excellent alternative tool for visual learners.

You can read the full article here by the Canadian Press available here.

The information provided is for educational purposes only and does not constitute specific investment, legal, accounting, or tax advice.