Talking With Your Kids About Financial Issues

Last updated on: July 9, 2012 at 8:00 am by Tim

Talking With Your Kids About Financial Issues 2012-07-09T08:00:10-05:00 Tim

LOGO Patheos Explore the world's faith through different perspectives on religion and spirituality! Patheos has the views of the prevalent religions and spiritualities of the world.

I can remember asking my parents just to write a check to pay for something that was ‘too expensive.’ When you’re 6 years old, money is something that just appears in your dad’s wallet and checks are used to buy things that you don’t have money for!

It wasn’t until I started saving my own money that I realized that you couldn’t just write a check or swipe a card to buy everything you wanted.

The scary thing is that a simple concept like this hasn’t caught on for the millions of people in America who carry an average of $15,956 according to a CreditCards.com report.

So how do you even begin to teach your kids about money? The truth is, if you have kids, you’re already teaching them about money whether you know it or not. They’re watching you at the store as you look for deals and while you’re paying at the cash register. Your kids are listening to you and your spouse talk about bills and your monthly budget. Even if you try to keep money issues out of the range of your kiddo’s ears, they’re still absorbing a lot of your habits when it comes to money.

There’s no secret formula for teaching your kids about money, but there are ways to shape their minds when it comes to good financial management. Whether your kids are 5 or 15, it’s never too late to emphasize these money lessons as a parent.

1. Teach Good Stewardship By Your Example

How many times have you encouraged your kids to save a little bit of everything they make? It’s just a good practice to set aside 5-10% for a rainy day, right?

So how’s your rainy day fund coming along?

I know you have bills and credit card debt and medical expenses and car insurance payments, and Christmas presents to buy, and this and that. But if you fail to save, you’re showing your children that it’s OK to spend everything you make. Living paycheck to paycheck isn’t something you want for your kids, so show them that you’re making it a priority to pay yourself first even when the budget is tight.

2. Involve Kids With Money Decisions

Thinking about making a big purchase like a TV, car, or new house? It’s the perfect time to bring the kids into the discussion by asking their opinion. Your kids are smarter than you think when it comes to math – most fourth graders can work long division problems better than adults! Don’t be afraid to give them real numbers to crunch and ask them how they would decide if they were spending their own money.

3. Let Them Manage Their Money

Whether you give your child an allowance or not, it’s likely that they’ll have their own money to manage from time to time. Help them succeed by setting up a bank account for them and by teaching them to keep close records of their spending. If you can’t find a bank with free children savings accounts, use the bank of Mom and Dad for younger kids who need to learn what it’s like to make deposits and withdrawals.

You’re shaping your child’s financial future with every lesson you teach them about money. Learn to talk to your kids about the simple things when they’re younger, and you’ll have the confidence to talk about issues like life insurance and long term care options when they’re older.

In your opinion, at what age is the best time to start talking with your kids about money?

Family and Money

Previous Post

July 6, 2012

10 Summer Jobs for College Students

Next Post

July 11, 2012 Financial Independence May Be Closer than You Think

Browse Our Archives

Select a Category ALL Bible and Money Biblical Perspective Book Reviews Budgeting Business Corner Churches and Pastors Debt Encouraging Scriptures Entrepreneurship Faith and Economics Family and Money General Personal Finance Giving Inspirational Quotes Investing Making Money Other Personal Finance Retirement Reviews Round Up Saving Self-Improvement Taxes Uncategorized

Select a Month January 2019 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 November 2016 October 2016 May 2016 March 2016 February 2016 January 2016 January 2015 November 2014 October 2014 August 2014 April 2014 March 2014 January 2014 December 2013 November 2013 October 2013 August 2013 July 2013 June 2013 May 2013 April 2013 March 2013 February 2013 January 2013 December 2012 November 2012 October 2012 September 2012 August 2012 July 2012 June 2012 May 2012 April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010

TAKE THE

Religious Wisdom Quiz

Who was Jonathan's son, crippled as a child, whom David showed kindness?

Select your answer to see how you score.

Siba Jedidiah Mephibosheth Abinadab