Family Finance: It's Time To Talk To Your Kids About Money
Several financial surveys have recently been conducted, with results showing that approximately 50% of parents avoid talking about money or finances with their children.
These studies have shown parents aren't talking about financial health because they consider it to be unimportant or too complicated.
However, talking to your kids about money isn't difficult.
If the saying is true that "money talks", then as parents let's start talking.
Keep reading, we list some helpful tips on how to start the discussion with your children:
1) Start Talking Money Early
Start educating your children in finances from a young age.
Use everyday examples and situations, that way your kids will have a better grasp of economics on a level that they can easily understand.
In time, you'll be able to explain more complex things such as saving money for college, their first car, or buying their dream home.
An early start is one of the most important things when it comes to helping your children understand finances, as it sets the foundation for how they will handle money in the future.
2) Teach Them To Set Goals
We all know that kids want new things, be it a new pair of shoes, the latest video game, or whatever the trendy, new gadget they saw on YouTube.
So, why not teach your children how to save their own money to purchase some of the items they want? Explaining the cost of an item and showing your children how much he or she will need to save each week is not only practical but also gives your children an appreciation of cost and money management.
3) Explain How Loans Work
Your kids may not understand that your family has financial obligations, such as a loan or mortgage (and let's face it, we all do).
Let your children know what responsibilities you have and how they work.
If you want your kids to learn what a loan is, let them borrow some money from you and show them how repayments work.
For older children, you can also include interest rates and have them pay you back a little extra.
4) Play Some Financial Themed Games
Using a game or activity to explain the ins and outs of finances is a helpful tool for parents.
Every kid wants to have fun, so take advantage of that and engage them with games like Monopoly or applications with monetary themes, which will help you educate your children in economics. Plus, who doesn't want to walk away with the biggest stack of Monopoly money at the end of the night!
Your children's future is the most important investment you'll ever make, so start today.
Need a little financial education yourself? Be sure to read our last article simply titled "How To Get Out Of Debt". I bet you'll find at least one new idea to help you eliminate your financial problems.