Financial conversations are one of the most difficult things to teach children to have. I have heard many people say that personal finance should be taught in school. While we agree, you can also start educating your little ones on the importance of financial independence as soon as possible.
Conversations about money and issues surrounding finances are the number one reason for difficulties in marriage. It is never too soon to start having these conversations with your kids. Make money conversations a family discussion.
Finance for Children
- Start normalizing discussions about money when they are little. Children model what we do. Make it a normal part of life for them.
- Involve them somehow. Whether it is giving them a special allowance for the grocery store so they can understand the cost of things or having them deposit half of their allowance in a savings account, this creates great habits for them to grow on.
- Explain the concept of credit and budgeting to them as soon as they are old enough to grasp the meaning of money.
- Keep them updated on the status of their accounts, so they can see how they grow and how important it is to save money. Just blindly depositing money does not teach the concept of saving.
Money does not have to be a scary subject. Respect and clarity on financial issues is critical to understand. Begin when they are little.