Children and Money

The Benefits of Talking to Kids about Money

The Benefits of Talking to Kids about Money | www.TheHeavyPurse.comAs 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.

How Money Talks with Kids Make a Difference

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.

Money Matters with Dino

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.

Don’t Delay. Start Now

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.

What benefits have you seen from talking to your kids about money? Or how did childhood money talks help you as an adult?

Shannon

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Comments

  1. Friday, July 25th, 2014
    "you will always be too busy and the earlier you start these conversations, the easier it is for both you and your kids." I could not agree more Shannon. What so many don't realize is that by using that line of reasoning, that is of being busy, you're just looking for excuses not to engage your children in money matters. Instead of making an excuse, use those as opportunities to begin to bring money into your child's life at their level and go from there. My parents did nothing in terms of that, though it was different for my wife of course we're on that end of the spectrum. :) Looks like the show went well, hope you have a great weekend Shannon!
  2. Friday, July 25th, 2014
    "Kids learn that money is not given on-demand, but is earned." This is a lesson that some adults I know still need to learn.
  3. Friday, July 25th, 2014
    I have been talking to Will about money since he was about 3 or 4, it usually started out as a fight because he wanted something and I was telling him "no." I kept with my message and continued to keep creating teaching moments wherever I could. Four years later, I am happy to report that we no longer have fights and as I have shared on my blog, I actually find him teaching me money lessons on his own now. You have to start talking to kids early about money and not stop. The lessons will evolve just as your children will.
  4. Friday, July 25th, 2014
    "Here is the thing: you will always be too busy..." YES! This is it exactly! We are always going to be busy. I used to get into the trap of, "I'll have more time after I get past XYZ event next week," but then it's "Well now holiday ABC is coming up next month and I so much to do!". There's always an event or holiday or something to look forward to, but they will also make us always busy. You just have to decide what your priorities are and get those things done first before you take time to do the other stuff, like watch TV. Your kids and their education, especially when it comes to a lifelong skill like financial literacy, SHOULD ALWAYS be a bigger priority than TV time.
  5. Friday, July 25th, 2014
    Excellent tips, and I loved watching the interviews. It was interesting to hear the guys questions and how they relate your tips to their own families.
  6. Friday, July 25th, 2014
    I still have a few more years before I can really talk to my son about money matters, but I'm glad you're here to help guide me! All the benefits you listed are very important to me and something I want to impart on my child. I see too many kids...as well as adults who could use these lessons on money.
  7. Friday, July 25th, 2014
    Hi Shannon,

    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 :).
  8. Saturday, July 26th, 2014
    Honestly, I give my mom ALL the credit for instilling in me from an early age (13!) how important it is to pay off your credit card every single month in full and to have a few months savings stashed away JUST IN CASE. Parenting win!!!
  9. Saturday, July 26th, 2014
    I think the biggest reason to talk to your kids about money is because if you aren't the one teaching them about it they'll go learn it somewhere else - for better or for worse. I learned everything I know about money from books, articles, etc. as opposed to my parents. I wish I had learned more from them, but they never offered up any advice or even lessons on it.
  10. Saturday, July 26th, 2014
    I think talking to kids about money early on is very important. In my opinion, these days children don't realize the value of money. Even kids that are in high school and college that live off their parents don't truly realize the value of a dollar. I'm a sophomore in college and have met plenty of students that are comfortable with spending hundreds of dollars of their parents money going out to a bar. I think if there was more education early on, children and students wouldn't be so greedy.
Shannon Ryan SHANNON RYAN, CFP®
  • Meet Shannon

    "As a Certified Financial Planner, it is my passion to help individuals and families build a healthy relationship with money. I look forward to helping you raise financially confident kids.” - Shannon Ryan