A Cambridge University study found that children have grasped all the main aspects of how money works and "formed core behaviors which they will take into adulthood" impacting financial decisions they will make through out their entire lives by the age of seven. Watching parents habits was key. Learning to plan ahead with money, and delay a decision to purchase something at a later date was crucial. When your child wants something, perhaps suggesting that you will get it for them on their birthday - this could help them in the long run. Also doing chores, earning money, putting money in a purse or pouch, and spending it together at the store - teaching them budgeting habits early on.