Eastern Mediterranean University (EMU), Business and Economics Faculty, Banking and Finance Department Chair Assoc. Prof. Dr. Nigar Taşpınar issued a statement titled “Have You Ever Talked about Money with Your Child?”, concerning financial literacy in children. The statement reads as follows:
“A study carried out by University of Cambridge indicates that children’s core attitudes and behaviors toward money are mostly formed by the age of seven. This finding highlights that financial education is not an issue that should be delayed until secondary school or university education. Long before children begin primary school, they start developing an understanding of what money is and how it should be used. Unless parents consciously guide this process, advertisements and social media step in to shape these perceptions with their own messages. In the economy of Northern Cyprus, where fluctuations in foreign exchange rates are quickly reflected in prices and consumption is largely import-driven, the importance of financial literacy becomes even more significant. Many adults learned how to manage money not through formal education, but through personal experiences such as receiving a first paycheck and struggling to balance expenses at the end of the month. Instead of allowing children to go through the same trial-and-error experience, we have the opportunity to provide them with guidance from a much earlier age.
So, what practical steps can parents take? Above all, it is essential to speak openly about money. In many households, financial matters are still treated as taboo, and children’s questions on the subject are often ignored or brushed aside. Yet even simple conversations such as, ‘Our electricity bill was higher this month; let’s think together about ways we can save,’ can help children develop an understanding of the economic realities within the household. Equally important is giving children a regular allowance and allowing them the freedom to decide how to use it without constant intervention. A child may spend money on something that parents consider unnecessary, but the disappointment experienced after quickly running out of money can provide one of the most valuable and lasting lessons about financial responsibility. Child development specialists also recommend the ‘three-jar method’ as a practical and effective tool. In this approach, one jar is allocated for daily spending, another for long-term savings, and a third for sharing or helping others. As children watch their savings gradually grow over time, the abstract idea of saving becomes a visible and tangible experience.
Financial literacy is, in fact, more of a thinking skill than merely a matter of money. A child who learns to save experiences delayed gratification; a child who sets spending priorities develops analytical thinking; and a child who manages an allowance learns to take responsibility. Parents do not need to be financial experts to help children acquire these skills. Choices made at the supermarket, savings collected in a piggy bank, and family conversations around the dinner table such as ‘What should we be careful about this month?’ can each become valuable learning opportunities. Children internalize not what they are told, but what they experience. Every conscious step taken in this regard will lay the foundation for the financial decisions your child will make in the years ahead.”
