As a parent, you might be worried about talking about money with your children. You can develop good financial habits at an early age to set your kids up for the future and the financial challenges they will face.
We’ve outlined some tips for talking about money with your children.
Start at an early age
It’s never too early to start discussing money with your children, just be sure to keep it age appropriate. There’s a high chance that your children already know more than you think about money but will likely lack context to understand what money truly means.
Discuss money in real life situations
The best way to help your children understand money is to discuss it in real life, practical situations. This will weave money lessons into everyday life and help them to understand where money comes from. For example, when you are at the supermarket, you can explain to your children how items are priced and that there are a variety of different options available for different prices. This can teach them how to shop around for the best price possible.
Keep it positive
It is so important to keep conversations around money positive. While you might be stressed about your finances, you should never talk negatively to your children. Your kids might misinterpret any anxieties you have and develop fears themselves.
Conversations are far more effective than lectures. If your child asks you about money, you can help their understanding by asking them questions in return. For example, your child will probably ask if you are rich. You can respond by asking them what they think rich is to help them arrive at their own conclusions about money.
Keep the conversation going
Instead of just sitting down with your child and having one discussion about money, it’s best to keep the conversation going. Your discussions will continue to evolve as your child, and their responsibilities and relationship with money grow.