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How To Talk To Your Kids About Money Management

How To Talk To Your Kids About Money Management

Disclaimer: This is not a sponsored post. This post is in collaboration with Samantha Green. She is a contributor to The Mommy Cooler Blog. All opinions are hers. See Bio below. Image credit RF123

It’s but natural to hesitate to talk to your kids about money matters. They are, after all, quite young, and you’re worried they wouldn’t be able to handle it. You should, however, give your kids a bit more credit.

Your children may be young, but you should never underestimate their capacity for curiosity and their ability to soak up knowledge like a sponge. Besides, you would be doing them a giant favor if you expose them to financial matters at such a young age. With your consistent guidance, they should be able to pick up and develop money management skills that will serve them well as they grow older.

When it comes to money management, there’s no such thing as being too young. It’s just a matter of finding the right approach when talking to your kids about it.

Talk about age-appropriate money matters.

Of course, you should keep any financial talk to topics that are appropriate for their age, so don’t think about discussing insurance or stock market matters with them, for now. The concept of money and how it buys them the things they need should be just enough for, say, a five-year-old child. You can teach them that money doesn’t grow on trees, that one has to work hard to earn it. You can then move on to more complex subject matters as they grow older.

Teach them about saving up.

The idea of saving up is one of the most essential money management lessons we can teach our kids. Explain to them that by setting aside a part of whatever money they earn from chores or jobs, they’ll have funds that will come in handy in the future. You can set savings goals for them to keep them motivated, like telling them they could buy that new video game if they save this much from their allowance every week.

Make your financial talks a regular thing.

Instead of talking to your kids about money in one sitting, make it a regular thing. Incorporate money management talk to everyday activities, like when you’re out shopping for groceries. Teach them how to compare prices and how to arrive at a buying decision wisely. With your continued guidance, your children will become very well-acquainted with financial matters soon enough.

Tell and show

Don’t make your financial discussions all talk. Show them examples to follow, like not throwing away things that can still be fixed, or drawing up a shopping budget and sticking to it. You can also introduce the idea of delayed gratification by telling them how much you want that new car for the family, but you are putting it in the back burner for now because there are other priorities.

These are just some of the ways you can teach your kids about money management. Apply them consistently, and you can rest assured that you will have money-smart kids who will know how to handle themselves financially as they grow up.

About The Author

Samantha Green is the Content Marketing Strategist for BusyKid, the first and only chore and allowance platform where kids can earn, save, share, spend, and invest their allowance. A mom of two, she enjoys spending time with her kids and reading books to them.

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