As I shared with you last week, I had the opportunity to be on Money Matters with Dino last Sunday. I had a great time with Dino and Phil talking about one of my favorite topics: children and money. I am doing my part to help create awareness and show parents the benefits of talking to their kids about money.
The biggest problem is that most parents don’t realize the need to talk to their kids about money. In most situations, money was a taboo topic in their home growing up, so it’s simply not on their radar as something they need to do. The good news is once parents recognize the need, they respond very favorably and soon experience the difference these conversations can make. Some of the benefits include:
This is just a small sampling of the many benefits of teaching your kids about money with the ultimate outcome remaining the same: Your kids develop a healthy relationship with money. They are financially confident kids who grow up to be adults who don’t fear money and know how to manage their money wisely. And this is why I talk to my girls about money and encourage you to do the same with your children.
To help you get started with these conversations and understand the benefits, I invite you to listen in on my conversation with Dino and Phil.
If you prefer to watch and listen, I’ve embedded a video below on how to teach your kids about credit cards.
They have created multiple videos broken into small 1-3 minute snippets based on topic. You can find the rest of them on YouTube.
The two common reasons parents give me as to why they can’t talk to their kids about money are: I’m too busy or I’ll talk to my kids when they are older. Here is the thing: you will always be too busy and the earlier you start these conversations, the easier it is for both you and your kids. Many times the real reason lurking underneath your hesitancy has to do with not wanting to expose your money skeletons to your kids. Again, I understand your hesitation, but I encourage you to not let fear prevent you from helping your kids develop a healthy relationship with money.
The simple, and sometimes hard truth, is that if you had been more financially confident, you may have avoided making some of those mistakes. So give your children a chance to avoid making their own mistakes by talking to them about money now, including your mistakes when appropriate. Money mistakes are always going to happen but when you are financially literate, it is much easier to recognize and bounce back from mistakes before they have a chance to cause long-term damage. The gift of financial literacy is one of the greatest gifts you can give your children. So don’t delay; start now.
Shannon
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SHANNON RYAN, CFP®
Great tips and I love the video. It's a great example of how easy a conversation about money can be with our kids. We don't have to use big words.
And you're right, the kids know all about the plastic. I have had many conversations with kids about money and the lessons I had to learn the hard way. And what I love is that she and her brothers are asking questions now.
Thanks for putting these tips together for us. Hope you had a great week! Have a fabulous weekend hun :).