Wednesday, June 03, 2009
Pre-Schoolers Can Understand Money Concepts
They may not think money grows on trees, but pre-schoolers can understand the importance of the green stuff.
Research into how young children learn indicates that they are capable of acquiring basic money concepts long before they enter school. Through social interaction and observation, preschoolers can begin to comprehend such abstractions as the purpose of money.
That's one of the key conclusions of phase one of the University of Wisconsin (UW)-Madison study into preschool financial literacy. Credit unions developed the concept and offered advice for the study, and a grant from the National Credit Union Foundation funded the research.
Parents who guide their preschoolers in learning about money and saving obviously won't create toddler Warren Buffets.
"However, it is generally recognized that very young children can be taught about the basic benefits and tools of sharing, savings, and purchase that will support good financial habits and practices as children, leading to better managed financial lives as adult, independent spenders and savers," the report said.
For the executive summary and the full research report, click here. Financial education resources also are available on Dupaco's website here.