Talking about money with your children does not have to be complicated. The best way to accomplish this is to use day-to-day activities and turn them into learning opportunities.
Younger children often do not understand money and its’ value. This is most apparent when you are giving your child coins. For example, if you give your child the choice between a penny, a dime and a nickel they will almost certainly choose the nickel simply because of the larger size. It is highly important to teach your child value at a young age. Likewise, teaching ‘worth’ is another concept that takes time to learn because in a child’s mind they are still dictated by desires and don’t understand the hierarchy of needs. To begin the path to responsible money habits a few easy steps I recommend are:
It is crucial for teens and young adults to understand how to handle money responsibly. Unfortunately, our education system no longer has room for some of the more basic life skills. Young people are graduating high school and have not been taught how to balance their checking account or budget their expenses. The taboo surrounding money matters has created generations that became mired in heavy loads of debt, bad money habits and even many money disorders. While there is a fine line between over sharing or even burdening our children you should try to have earnest and frank conversations with your young adult children about lessons you have learned in life and how best to avoid some major mistakes.
Some other great ideas to foster positive money habits and feelings about money:
Actively taking steps to prepare your children for their financial future starts at home. Money and finances do not have to be taboo topics or sources of shame. Opening dialog, sharing knowledge and experience is the key to passing on healthy financial habits and patterns to future generations.