-->

How To Talk With Your Kids About Money

By on May 29, 2015
talk with your kids about money

How To Talk With Your Kids About Money

talk with your kids about money

Some families are comfortable talking about money to their kids, others are not. But regardless of whether you think you are ready to talk to your kids about money, they have probably already heard something. This is because most families at some point have arguments about money, and chances are your kids have heard these arguments. So instead of making that their point of reference in your family about money, why not open the door to a financial discussion now? While very young kids don’t need to know every aspect of your family’s financial situation, most kids should probably know the basics of how your family is doing financially. That includes the both the ups and the downs in the family’s financial picture. But at what age should you start having a real talk with your kids about money?

Talk With Your Kids About Money Using The Bill-Paying Game

When your kids are ten or eleven years old, they are generally old enough to understand some basic principles. This may be a good time to introduce them to a game called The Bill-Paying Game. You can find the details on how to set it up and use it to talk with your kids about money in Forbes here. It is a good way to have the entire family sit down together and discuss bills, budgets and all the basics that everyone should know about running family finances.

Our House, Our Rules, Our Values

Many families who have wealth are uncomfortable telling their children about the family finances because they don’t want their kids to be snobs or act spoiled. They might be afraid that with the truth their kids will expect more of the “keeping up with the Joneses” attitudes.  But the truth is you can use this opportunity to teach your children some real values. You can show them that apart from your financial worth, in your home the values you teach hold regardless of what you can afford or not. It is also an opportunity to teach them that money still needs to be budgeted and that there will always be families with more wealth or less then you. This is an important lesson for the kids to learn, and the younger they learn it the better.

Teach Your Children Well

If you are going through tight times, teaching the kids to understand how and why this is happening can be important. This is simply a part of life, and they will accept it if they understand it and feel they can be part of the situation instead of simply a victim of it. In the long run, when you talk to your kids about money honestly they will hear you and feel empowered by that knowledge. That is really all we as parents can hope to give our kids, isn’t it?