Wednesday, March 31, 2010

Take Advantage of Opportunities to Teach Your Kids about Money

One of the biggest benefits of beginning money talk with your kids when they are young is that there seem to be endless teaching opportunities or "teaching moments" afforded to us by them. Kids love to ask questions and providing them answers to such things as...
  • "Why can't we go out to dinner again tonight?" (discuss the family budget or the cost of doing so)
  • "I really want that American Girl doll. Can you buy it for me?" (talk setting goals and saving)
  • "Why do I have to put money in my Share jar?" (it's time donate those dollars - make it tangible for them)
...will help them feel more comfortable with money and money choices. Money is a tool with which kids should be comfortable. Talking to them about it will keep it from becoming a "taboo topic."

By not talking to your kids about money, you'll miss the chance to engage with them in these ultra-important teaching moments. It will increase the chance that money will move into the realm of "taboo topic" and that can lead to misunderstandings and, worse, financial illiteracy when they get older. Talking to them about money doesn't guarantee money smarts, but not doing so carries tremendous risk.

Are you worried they might not understand? You'd be amazed what they can understand at a young age. Check this out:


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