Is there a good time to talk to your kids about money? Should you even be talking to children about it? The answer is yes!
The knowledge of money is the best way to prepare our future generation for their financial future. Teach them the importance of responsibility, goals, saving and investing. It starts with you!
Don’t be scared to have “the talk”, being open and honest with your children is only going to prepare them for the real world. The most common first interaction with money is the tooth fairies first visit. Use this to explain to your child the value of money, what they can do with the money and why they are receiving it. You can start an allowance for them, teaching them about budgeting and saving.
Budgeting, something we all have to learn. You need to decide for your children’s allowance if they will be paying for what they want, need or both.
The next step is to let your children do what they want with the money, with set boundaries of course. If they want to blow all of the money on a toy, let them. If your child comes back to you asking for more money, explain to them where their money went and have them do something around the house in order to receive more money.
It’s recommend to be open with them about your own finances. Ron Lieber the author of, The opposite of spoiled: raising kids who are grounded, generous, and smart about money says, “They need to have some experience thinking about the things that make up a family budget, so over the course of many years you share with them what you spend on charity and you explain to them that even though when they Google your address and the first thing that comes up is some crazy Zillow number in the hundreds of thousands, the fact of the matter is that most families with younger kids are still also paying off a mortgage that also has numbers in the hundreds of thousands of dollars.”
Everyone has their own way or parenting, and you know your children the best. If you take anything from this, it is to not be afraid of talking about finances with your children. You will find the best way to teach your children, trust yourselves and you will be raising money-savvy kids!
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