Money and Children

<< back to Money and Children, pt. 1


Shed your own past

It’s natural for every parent to want their child to do better in life than they have. It’s also natural for parents to try to instil values about money and finances based on their own upbringing, their own experiences, their own mistakes, and their own expectations. When talking to your child about money, remember that you are primarily teaching him or her about the concepts of money, the importance of money, and the value of money. You should not be trying to amend or fix the mistakes of your own past, nor should you be trying to have your child exceed your own financial achievements. You are merely trying to help your child develop an awareness of money and acquire a set of skills that they will then use to find their own financial level in life.

Money is not a taboo subject

One of the most important steps you can take in helping your child learn about money, is to make sure that the topic of money is not considered taboo within your family. While many parents do indeed talk openly and somewhat freely about the topic at home, a great number of parents feel uncomfortable dealing with the subject in an open fashion. Indeed, the topic of money can often be a stressful subject, particularly if the parents are under some financial strain of their own. It’s important therefore to be able to differentiate between any burdens the family might be under financially wise, and talking about the general topic of money with your children. Some parents might even feel hypocritical trying to instil good money habits into their children while they themselves are struggling to make ends meet due to bad financial management. Again, it’s important to separate the specifics of your own current situation with that of the overall theme you’re trying to teach your child.

As the child gets older, and becomes more ‘financially aware’ it could even be a good idea to include them in discussions about the family finances. A good introduction would be to ask their suggestions for items that the family might need to purchase given a set budget, such as a new sofa, car, holiday or even a new toaster. Encourage the child to research the possibilities within the budget and to make suggestions. From the child’s perspective this can be immensely gratifying and it teaches them about financial limits and evaluating value for money.