Money habits are ‘formed by age seven’

The government-backed Money Advice Service has warned parents “not to underestimate the effect of their own bad money habits”.

Most children’s financial habits are formed by the age of seven, it was claimed today by the government-backed Money Advice Service (MAS), as it urged parents not to “underestimate the effect their own good (and bad) money habits will have on their children”.

The organisation pointed to a Cambridge University study that suggested that most young children had grasped all the main aspects of how money works and formed “core behaviours which they will take into adulthood and which will affect financial decisions they make during the rest of their lives”.

Caroline Rookes, chief executive of the Money Advice Service, said: “This study really demonstrates the power of parental influences, and illustrates how much of what you learn and absorb when you are young, both consciously and subconsciously, affects the choices you make throughout the rest of your life.”

The MAS said it would establish a forum to create “world-class parenting and teaching resources” and has called for money education to be included in the primary school curriculum in England.

Michael Gove, Education Secretary, announced plans earlier this year to put personal finance education on the curriculum for secondary school pupils.

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