Why You Should Be Talking to Your Kids About Money

You probably already know that you need to talk to your kids about the important things in life. You may just not know that money is one of the topics that should be discussed with kids often and early. Helping kids learn about money early helps them throughout their lives.

Habits Develop Early

According to MX, only 23% of kids discuss money matters with their parents. That’s a very low number since all children will have to manage money one day as adults. Without conversations and guidance from you, your child will not know how much things cost or the importance of saving. Money habits develop early in a child’s life. You need to teach them the importance of saving as soon as they are old enough to receive an allowance. Help them learn about giving money to charities they find important, and teach them the difference between spending money on something they need versus something they simply want.

Help Kids Achieve Financial Independence

Financial independence is a goal you should have for your kids, but they can’t achieve it if they don’t know how to handle money. Manulife says it’s easy to make crippling financial mistakes if you don’t understand the risks of credit cards and the danger of living paycheck to paycheck with no savings account. That’s why teaching your children about finances is essential. Make sure your child understands that bills have to be paid before money can be spent on entertainment. Help them value the money they make and watch it grow so your child develops the self-control and patience that forms financially independent adults. If you don’t talk to your child about money, they can’t learn from your wisdom and will have to suffer the devastating consequences of irresponsible spending.

Help Kids Build a Better Future

Talking to kids about money also opens the door for you to discuss with them how to plan their lives financially. JackieBeck.com suggests introducing your child to the concept of being debt free by living in a smaller home instead of a typical house and limiting their needs, so they have money left over with which to travel and simply live off of without stress.

Don’t let your children fall into the trap that consumerism sets. They will follow the crowd into debt and limit the opportunities they have in life because of it. Money lessons are life lessons. Talking to your kids about money is important, and you need to start early. Money lessons can save your kids from making financial mistakes that will negatively impact their lives.

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