The biggest challenge for our kids, and for many adults, is that money has become invisible.
Think about what a small child sees happen when he goes with mom or dad to the supermarket. They arrive at the checkout with a full cart, are handed a plastic card, and the cashier asks, “Do you want cash with that?” The whole transaction can send the wrong message to children.
It’s all very abstract for kids when most of our transactions are digital, involving electronic transfers and bits of plastic. At least you can see and hear the money – and it’s quite obvious when it’s all gone.
In our modern world, the key is for parents to make real money. This means including children in conversations about money as part of everyday life.
Set financial goals for your family, such as saving for a vacation. Talk to the children about these goals and how you plan to achieve them. Share conversations about needs versus wants and how to prioritize spending.
I was fortunate to grow up in a home where money was a topic of conversation at the dinner table. I continued the tradition of talking to my children about money, especially during their high school and college years.
It was mostly simple things: Spend less than you earn. If you don’t want to budget, don’t budget. But if you make $200 a week from your weekend job, don’t spend $200 a week.
I’ve always tried to phrase things in terms of what will make my kids feel better. I think it’s important. It’s not brainwashing. It’s about creating a spark of interest and encouraging good money habits.
