If he's determined to blow a month's allowance on a flimsy plastic toy that's likely to break the first time it's used, explain your concerns about the quality of the toy, but then let him make his own decision. The Essential Guide for Parents. Generation X is a carrier, while Generations Y and Z stand at risk of anemic financial futures. If you wait until they've tasted consumption, it's going to be a difficult habit to break. Introducing money to children just out of diapers is difficult.
Preschoolers have little concrete concept of money.
Worse, money can throw concepts they do understand out of kilter, says Harvard Medical School clinical psychologist Lawrence Kutner. They find the physical structure of money confusing. That means parents must be aware of their child's developmental limits. But parents can help preschoolers acquaint themselves with money. Let them handle and count money during simple cash transactions.