Imagine being a kid under the age of 10. You go to the store, swipe a card, and presto! – you’re allowed to leave the store with new things! The concept of money, and what it allows, would seem magical to any observant child. Especially with the digitization of money when so many transactions happen on the screen, it’s important to sit down with your kids and talk about money as a family.
How do you talk about money in a healthy way?
How do you do that without instilling negative connotations or hang-ups?
Coaches in finance and family conversations have a few common guidelines:
Start early 🧸. Make every day events like buying groceries or getting a new car teachable moments
Be honest 🧸.When your children are old enough, tell them about those times in your life when you made mistakes with money – like going into debt or not saving enough money for university
The value of work🧸. Again, when age appropriate, have a family discussion about work, and how work brings in the money that supports family life. If possible, share your workplace with your child and explain how budgeting works. The whole “money doesn’t grow on trees” lecture will be more understandable when they are taught where money actually comes from
Talk values, not figures🧸. Your kids don’t need to get bogged down with the exact figures you’re talking about when you discuss new athletic equipment, summer camp or their future college education. Concepts, however, are much easier to grasp, and instil helpful lessons. Be sure to discuss and ask them to act out concepts like saving, delaying gratification, wants versus needs, giving to charity and paying down debt.
Again, teachable moments are everywhere in our everyday lives, you just have to be able to slow down enough to take the chance to teach them
Learn about money together🧸. There are many courses, online videos and books that help families learn about money. Consider setting savings or investment goals together and make opening an account and monitoring progress a family activity.
We have many parents following us. Tell us how you talk about money with your children! Any good ideas or strategies out there? ..