How to Talk to Your Kids About Money Management
If you refrain from talking to your kids about financial matters because you think they are too young, then you’re doing them a disservice.
If anything, your kids should first hear about money management from you, not from anybody else. It’s never too early for you to discuss money management with them. Knowledge about financial matters is very important, and your children will be the better for it as they grow older, with your guidance of course.
To be an effective guide for your kids when it comes to money management, you have to know how to talk to them about it. Here are some tips on doing just that.
Keep the talk age-appropriate.
Five-year-olds cannot grasp the idea of stock markets, so keep the discussion to matters like the concept of money. As they grow older, you can progress to introducing the idea of savings, credit, and so on.
Tell them that money needs to be earned.
Most kids will probably think that money comes out of ATMs, and that’s it. You need to instill in them the idea that money comes from hard work and show them how it helps you buy food and things for them. It’s a great way of teaching them responsibility, that they need to work to earn it, especially when they’re already old enough to get a job.
Show, not just tell.
Discussing money matters with kids is good, but it will even be better if you can also set examples for them to follow. One of the many things you can do is to show them a shopping budget, and as you shop together, show your child that you are sticking to it. Fixing things, instead of throwing them away immediately, is also a great example to set.
Talk about it consistently over time.
You can’t just talk to your kids about money management once, and then you’re done with it. As much as possible, make your financial talks a regular thing, like when you’re out shopping for groceries. It would also be great if your kids have a say on what to buy or what not to put in the shopping cart. With your frequent money management conversations, your kids will grow up comfortable with the idea of finance and all matters pertaining to it.
There are so many money management matters that you can discuss with your children, but putting a focus on the above should be a good enough place to start. You can rest assured that having a basic knowledge of finance when they’re still young will serve them well when they finally enter adulthood.
About The Author
Samantha Green is the Content Marketing Strategist for BusyKid, the first and only chore and allowance platform where kids can earn, save, share, spend, and invest their allowance. A mom of two, she enjoys spending time with her kids and reading books to them.