<h2>The Seven-Year Window</h2><p>A landmark study by researchers at the University of Cambridge found that children's money habits are largely formed by the age of seven. That's a striking finding -- and a powerful call to action for every parent and educator working with young children.</p><p>The habits formed in those early years -- saving before spending, understanding that money is finite, connecting effort to reward -- tend to stick. The good news is that these habits are entirely teachable, and the earlier you start, the more natural they become.</p><h2>What the Research Tells Us</h2><p>Developmental psychologists have found that children as young as three can grasp basic economic concepts like exchange (you give something to get something) and scarcity (there isn't always enough). By age five or six, most children understand that money is earned and that choices have consequences. By seven, they're ready to begin practising real budgeting decisions.</p><p>This doesn't mean sitting a six-year-old down with a spreadsheet. It means creating low-stakes, real-world opportunities for children to make money decisions and experience the outcomes.</p><h2>Practical Steps for Parents</h2><ul><li><strong>Give a small regular allowance</strong> -- even 50p or $1 a week -- and let children decide how to use it. Resist the urge to advise every purchase.</li><li><strong>Use transparent money containers</strong> rather than piggy banks so children can see their savings grow visually.</li><li><strong>Talk openly about family financial decisions</strong> at an age-appropriate level. Saying you are choosing the own-brand cereal because it tastes the same and costs less is a powerful lesson.</li><li><strong>Play money games together.</strong> Board games and card games that involve earning, spending, and saving reinforce concepts in a fun, pressure-free environment.</li></ul><h2>The Role of Schools</h2><p>While parents are the primary influence, schools play a vital supporting role. Teachers who weave financial concepts into maths, social studies, and even English lessons help children see money as a real-world skill rather than an abstract subject.</p><p>Financial literacy games in the classroom are particularly effective because they create shared vocabulary and experiences that children can then discuss at home.</p><h2>Starting Today</h2><p>You don't need a financial background to teach your child about money. You just need to start the conversation -- and keep having it. Every trip to the supermarket, every birthday gift of money, every 'can I have that?' moment is an opportunity to build a habit that will serve your child for life.</p>