Talking to Your Kids About Money
Talking to your kids about money can be a little tricky. Many of us carry our own baggage with regard to money. We often inherit money habits from our parents, whether good, bad or indifferent. I have found that having age appropriate, open conversations with your children is usually the best course of action. Many parents fear letting their children know the extent of their financial means or lack thereof. As a parent, you do not have to put a dollar sign on your financial means. A good habit is to use ongoing teachable moments to educate your children about money. If you are in the category in which you are able to take summer vacations, that could be defined as a teachable moment in which you educate your children on the fortunate nature of being able to take a vacation and what sacrifices mom and dad have to make to make that vacation a reality. It is also an opportunity to educate your child on how other children many not have the same opportunities. Conversely, if you are in the category in which you are not able to take summer vacations, that could also be defined as a teachable moment in which you educate your child that you may not have the financial means to take a summer vacation, but you are able to have fun on a budget in order to stay within your means. In my years of financial planning I have worked with many families-some of those very wealth and some with very limited means. I have found a very good article that is focused on wealthy parents talking to their children about money. The article can be applied to parents of any financial means.
Regardless of your experience and views of money, this could be your opportunity to guide your child on the path to financial success.