When Should I Start Talking to my Children about Money?
Discussing money can be uncomfortable. It feels awkward and sometimes leaves us comparing our financial situations to others'. Money is unavoidable, and arguably makes the world go-round. It is a universal language we all share and sometimes, we prefer not to hear what she has to say. However, the key is ending the taboo stigma behind it, and we can accomplish this by making money a regular topic of conversation in our homes.
The best place to start is by talking to your child about money, specifically, where it comes from, and how it impacts humanity on a daily basis. Financial Literacy will not only give your child the confidence to ask questions and look for assistance when they need it most, but also encourage them to make positive financial decisions. This knowledge may prevent them from making significant financial mistakes in their futures. Looking back, I often wish that my parents had taught me more about saving, spending, and financial hygiene.
Suggestions for teaching your child the value of a dollar:
You can start this process as early as age 3 with simply counting coins and using the appropriate names for each coin. As your child grows to preschool age, gradually begin assigning values to the coins. Then, as your child begins to learn basic addition and subtraction, practice math problems using dollars and cents.
Assign them weekly chores and an allowance for each activity. Expose them to the responsibility and freedom of having their own source of income.
When shopping, ask your child to help you decide which items are essential (food, water, shelter) and which items are a luxury (toys, dining out, online games).
Help your child create their own budget, allow them to choose a “goal”, perhaps a toy or daytrip to a local amusement park, and start saving! Remind them of their goal and motivate them to save.
Initiating the conversation about money will have lasting benefits for your family and will provide your child an advantage as they grow and learn. The pre-COVID economy was a beautiful thing, but I think that the pandemic reminded a lot of us that we need to be more attentive and cautious with our money. Beginning to educate your children on the satisfaction that accompanies financial security could protect them from developing any bad spending habits.
To help you and your child along the road to financial literacy, we have compiled a list of additional online resources that are excellent for beginners or those in need of a refresher.
Resources for Children Ages 5-8:
Resources for Children 7-12:
Savings Spree: Savings Spree is an app for kids to learn about spending, earning, and saving money. They will also gain knowledge about long- and short-term savings, and the benefits of charitable giving and investing.
BizKid$: Encouraging Habits of Good Money Management - BizKid$ is a public television series that has a website available for students, parents, and teachers to participate online in activities that teach money management and business.
Resources for Children 12-15:
For more resources, visit us at www.curowm.com where you will find comprehensive worksheets to work on developing financial literacy skills with your child.