Blog

Jul
21
How To Talk To Your Kids About Money

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Did you know that 71% of adults are reluctant to talk to their kids about money? Or that 41% of parents actually avoid the subject of money completely? By not talking to your children early on about money, it makes it difficult for them to learn the importance of financial responsibility. Luckily, there are a few easy ways to create a dialogue with your child about finances.

One of the easiest ways to introduce your child to finance is to sit them down and talk to them about it. This is a great time for you to make sure your child understands the basics of money and to answer any questions about the topic that they do not understand. You will probably be surprised at how much your child already knows and how much more they would like to learn.

While it may seem uncomfortable at first, another great way to teach your child about money is by telling them about a financial struggle you have experienced before. Not only is this a great way for them to learn how to avoid that situation, but it makes you more relatable. The situation could be anything from student loan debt to credit card debt, but whatever it is make sure to explain why you would avoid making that decision again and how you got yourself out of it.

A final option is to discuss an actual budget with your child. Show them how to use their own money, earned either by working or through allowances, to save up and purchase something they really want or need like a team uniform or birthday present. This hands-on approach will show them in real time how money works.

Whatever you choose to do, make sure to start early. The sooner you create a dialogue with your child and emphasize the importance of being financially savvy, the sooner your child will be on their way to financial confidence.

Parents, if you haven’t talked to your child about money yet, why not? And if you have, what tips would you offer other parents who are just getting started?

Written By: Alex Wood