More than a handful, if not all, value money, they discuss how important it is. But money is one of the reasons why there is something called stress. However, when talking about money, and modeling them in good management habits, you will be able to set up a financial success for your children in the future. That is, parents should talk about money with their kids on how they should be handling it…in a good way, of course.
And now, aiding children to become literate in financial matters is very important, more than it was before. Although the previous generations have pensions and social security to back them up, the generation now must start their plans, as well as save for, their retirements as the years go by. And worse, money has become an abstract idea. With credit cards and debit cards being all the rave, dollars and coins are being replaced which makes things more difficult for children to take on the concept of paying for goods and services.
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Money can still be talked about in healthy and helpful ways when it comes to family planning.
The whole family should be front and center in financial discussions. Focus more on what is important for your family, develop that kind of plan with them. In that way, you can avoid “budget”.
Set your goals like a family portrait. Perhaps you can create some sort of collage or bulletin board that will show the family’s financial goals. It will remind you of all the things you would like to save up for, like a vacation, or for any other reason you would like to remind you and your family.
Work hard together. Spend together, save together.
Choose your words carefully. Saying negative phrases can send the wrong message to the children. Rephrase it. Talk down but keep it light. Instead of, “We can’t afford it.”, you can say, “We should spend our money on what is necessary only. But, you can save up for it or put it on your wish list.” This will allow the children to learn about late gratification and money planning.
Allowance, allowance, allowance. This gives children to become financially literate. But do not try too hard, it could backfire on you. Make them balance their money on different seciotions:
- Spending
- Saving
- Donating
- Investing
As a teen, you can consider giving them a prepaid credit card. This helps them track their spendings and what is left. Useful for when they have their own credit and debit cards.
But, when it comes to financial advice for families, it is always good to seek expert help. They are there to help you manage your financial stress and family’s financial behaviors. Certified planners give out financial education and work with financial therapists.
