Search
Money Talk
Surveys show that less than 40% of parents talk to their kids about money. However, most kids aren’t learning financial skills in school, either. So how will your kids find out about money? Trial and error is a poor teacher. Children need guidance on how to spend, save and invest money. That’s why talking with your kids about money—starting from an early age—is just as important as teaching them how to cross the street or tie their shoes.
You Can Make A Difference
Many parents are uncomfortable talking to their youngsters about money, which only forces kids to learn the hard way. You don’t have to say exactly how much you make, how much you owe or how much you have in the bank or credit union to teach them the basics about checking accounts, loans, interest, savings and investments, as well as how to keep a budget and shop wisely. This knowledge will set them on the path to becoming smart money managers.
A wise man should have money in his head, but not in his heart.
—Jonathan Swift (1667-1745)
Healthy Money Attitudes
The ultimate goal in teaching kids about money is to help them become independent adults who can wisely manage their finances with a heathy attitude. Many adults have money issues stemming from childhood, such as anxiety about going broke, or misconceptions that money can but success, esteem or affection.
You’re in the Spotlight
Decide what feeling and ideas you want your children to have about money, and to sure to display those traits. Your kids learn most from watching you—including how you handle and feel about money. If generosity and helping those in need matter to you, for example, make sure your kids know you set aside money for charitable giving, or enjoy spending money on loved ones. Keep in mind what money value system you are passing along to your children. Are you encouraging honesty and responsibility? Do you want your kids to value family and health more than money?
Speak openly about money, and discuss what it can and cannot buy. Make it clear that money is not evil, nor does it buy true friendship, love or happiness—it’s simply a means to an end. Most of all, remember that your actions are more instructive than your words.
Money can’t buy happiness, but it can make you awfully comfortable while you’re being miserable. —Clare Boothe Luce (1903-87)
