Teaching Your Kids About Money.

Your parents probably didn't talk to you about money. Studies show that many parents don’t talk to their kids about finances because of stress & shame around the topic. While it’s totally understandable that you don’t want your kids to carry that same shame, you’re doing them a disservice if you don’t teach them to manage their finances. Here are some tips to help teach your kids money management:

Use actual cash. We don’t use “real” money nearly as much as we used to. It’s so easy to swipe your card and be on your way. Help younger kids learn the concept of money by paying with cash or play “store” at home.

Comparison shopping. As kids get a little older, involve them in shopping for the family. Teach them to compare brand name vs. generic, price per ounce and to use coupons. Show them that just because something is on sale, doesn’t always mean it’s a better value.

Give them the responsibility of money. Let them use their allowance / birthday money to buy things they want. Help them compare and make decisions. The really hard part is–let them make mistakes. Let them learn that they should have passed on that toy and not to spend it all at once. These are lessons that are much less painful now than later.

Be transparent. Let them see the real cost of things like utilities, insurance & taxes. These “hidden” costs of adulthood kinda sneak up on ya, so prepare them for expenses they don’t think about.

Watch your language. Hearing ”we can’t afford that” can send an anxious kid off the deep end. Be real, but not to the point where kids are worried about the stability of the household. Try a positive spin, like “that isn’t our priority” or “we are focusing our resources elsewhere”.

Track it. Set them up to track their spending. Start with a little notebook / register & move to a more complex spreadsheet or app as they get older. It’s so empowering to see exactly where your money goes so you can figure out where to cut back if circumstances change or you’d like to save more.

What lessons do you wish you had learned about money growing up? What strategies do you use with your own kids? Drop them in the comments!