From saving to spending: 5 essential money lessons every child should learn

One of the most important financial skills is knowing the difference between needs and wants. Needs are things that we must have, for example, food, clothing, education, and shelter. Wants are things we would like to have but can do without. Wants are the latest toy, gadget, or treat. Learning to distinguish between the two makes children better decision-makers. Get them to ask themselves one simple question before they buy: “Do I need this, or do I just want it?” This habit helps children learn to make smart choices and avoid impulse spending later in life.