There is truth and wisdom in the saying that the love of money is the root of all evil. That is the most important thing to teach kids about money. In truth the love of lucre for its own sake does lead to greed, avarice and often crime.

People who are born as heirs to a fortune made by someone else, or as the beneficiaries of inheritance can be the most miserable creatures if they have little purpose or true sense of worth.

They may take a great liking to gold and other shiny things, but it helps them not a jot if they do not really believe in themselves. But a person who works hard and loves, and is loved, can be the happiest person alive even if he has barely enough to live on.

It is well known how the world’s richest self-made men pay themselves modest salaries, live simply and carry on working well past retirement age. For them dollars are a measure of achievement, and not ends in themselves.

When a child understands these things he is ready to learn about financial management. As accountants know, the first principle of finance is prudence. This can be understood and practised if a child understands the true value of the currency he works with.

If a child’s wish for a toy is instantly gratified the parent may experience more pleasure than the child who will soon tire of the toy. But if the child saves up for the toy, and finally gets it after a process of saving the pleasure will be much sweeter, and accompanied by a sense of achievement.

To teach kids about money one must first teach them its value. Of course it has little value in itself, but its true value lies in how difficult it is to earn in relation to what it can buy. That is a very useful thing for children to understand.