teaching children about money

Smart Ways to Teach and Talk to Your Children About Money

Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

So many of the values that we hold dear as adults were born from a time when we were still young, impressionable children. This is one of the many reasons why it’s so important to teach and talk to your children about money – it helps put them on a sound financial path as early as possible. As you begin to do so for the first time, however, there are a few important things to keep in mind.

What is Money

It can often be helpful to start your conversation by talking about where money came from. In the old days, you made money by growing some corn or making some moccasins that you would then trade for other goods and services. Essentially, this was a barter system. You can equate this to kids trading things at lunch at school – just because you aren’t trading actual cash doesn’t mean you aren’t using currency, and that currency always has value.

The Value of a Dollar

Segue into a conversation of needs and wants which, in reality, isn’t all that different from the barter system of old. If they want to buy a video game, tell them how much that game costs. Tell them how many hours of work go into saving the money for that video game. Use an example of the number of lawns they would have to mow or driveways they might have to shovel. Is the amount of effort required to get the money worth the cost of the game?
It’s very good for your kids to understand early on what it takes to operate a house. Let them see first hand what goes into keeping a roof over their heads. Explaining the various costs such as electricity, water, heating oil will help to value those resources.

Money is Finite

One of the most important things to teach your children about money is that it is NOT unlimited. Teach your kids where debit card money comes from and how every time you swipe that card at a cash register, you’re making a choice about where your money is going and what you’re choosing to spend it on. It is harder for kids today to understand the limited amount of money a family may have because of the use of electronic currency like credit cards and debit cards. Remember that it isn’t JUST about teaching them about money – it’s also about teaching them to make the best choices possible in life.

Life Lessons

Think about all of the things that your kids will face every day after their high school education is eventually over. They can essentially be boiled down to four things: finances, relationships, their beliefs and their health. It’s really important to teach children about each of these, as I believe there is a very big hole in the educational system regarding these real life items. Having a conversation with your children about money is about a lot of things that extend beyond the idea of currency. Children to young adults need to be aware that spending is an emotional experience. If you’re able to tie in good emotions to the concept of saving money, not spending it, kids will have a much better set of financial values from which to operate on as they grow.

Share:
facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.
Share Post: facebook Created with Sketch. twitter Created with Sketch. linkedin Created with Sketch. mail Created with Sketch. print Created with Sketch.

RECENT POSTS

Carson Investment Research’s Outlook ’23: The Edge of Normal

At long last, The Carson Investment Research team is proud to officially release our 2023 Market and Economic Outlook, aptly titled Outlook ’23: The Edge of Normal. You can download the whitepaper here. As you are all painfully aware, 2022 wasn’t pretty for investors – it was the first year …

What Documents You Should Provide to Your Tax Preparer

Mike Valenti, CPA, CFP®, Director of Tax Planning Tom Fridrich, JD, CLU, ChFC®, Senior Wealth Planner It’s January, so it’s officially tax season! One of the most common client questions heard by tax preparers is, “So, what do you need from me?” The short answer to that question is often, “ …

We Offer Reliable Trust Services in Milldale, CT

Wealth, security, and good financial health are essential for all of us. Trust services can help you protect your assets and build a legacy that will benefit individuals and families far into the future. With trust services secured through Nesso Wealth, you can be confident in knowing that …

Begin Your Legacy Planning in Milldale, CT

Estate and legacy planning is an important financial decision for business owners, entrepreneurs, individuals, and families. With the right plan in place, you can protect your finances while ensuring they will be passed on to future generations. Estate and legacy planning can also provide a …
1 2 3 109 110 111
teaching children about money

Get in Touch

In just 15 minutes we can get to know your situation, then connect you with an advisor committed to helping you pursue true wealth.

Schedule a Consultation