Research from the University of Cambridge found that many core money habits are formed by the age of seven. Long before children understand investing or budgeting, they are already absorbing attitudes about spending, saving, patience, and value from the adults around them. And it makes you question – what can you do to teach kids the value of money and inculcate good financial habits in them? The good news? Financial literacy doesn't begin with complicated lessons. It begins with simple, everyday habits. In an interview with HT Lifestyle, Nehal Mota, co-founder of Finnovate, shared simple habits to teach kids the value of money.

Nehal highlighted that instead of handing over pocket money without context, encourage children to divide it into three jars: one for spending, one for saving, and one for giving. This creates an early understanding that money has multiple purposes and not every rupee is meant to be spent immediately.

“The supermarket is one of the best classrooms for money education,” said Nehal. Ask children to identify which items are necessities and which are wants. Over time, they learn that every purchase involves a choice, a skill that remains valuable well into adulthood.

When kids ask for a toy, game, or treat, introduce a waiting period before buying it. This small habit strengthens delayed gratification and reduces impulsive decision-making. Research consistently links delayed gratification with better financial outcomes later in life.

“Encourage children to compare prices when shopping, whether online or in a store. Show them how similar products can have different costs and discuss why,” recommends Nehal. This simple habit helps children become thoughtful consumers and understand the importance of making informed spending decisions.

Abstract concepts are difficult for children to grasp. Use a transparent savings jar or a visual progress chart for a goal they care about. Watching savings grow over time makes patience feel rewarding and helps children experience the satisfaction of working toward something meaningful.