02.05.2024 By Amanda Woods

Talking About Money With Your Kids

At America Saves, we believe that talking about money can be a family affair! In fact, talking with your family about money and including them in some basic financial decision-making (like setting a shared goal!) can be fun, beneficial, and educational for the young people in your life.

At America Saves, we believe that talking about money can be a family affair! In fact, talking with your family about money and including them in some basic financial decision-making (like setting a shared goal!) can be fun, beneficial, and educational for the young people in your life. The American Psychological Association shares that family discussions about money, as well as modeling healthy financial behaviors, can have lasting positive impacts. If you’re unsure how to start a conversation with your family about money, don’t worry - that’s why we’re here! 

We’ll help you understand the benefits of having family conversations about money, and share some helpful tips and tricks to help get you started.

 

Why Talk About Money With Your Kids? We know what you may be thinking - finances can be a tricky subject to talk about, especially with our kids. And we know it can be tough to get started, but when you include your young ones in conversations about money, you’re helping to shape their relationships with money, building their confidence, and teaching them valuable lessons that will not only benefit them now, it will continue to serve them into the future. 

Children start forming their own habits toward money from a young age by watching how the adults around them interact with, talk about, and spend money. We know that building financial confidence is a journey, one that includes understanding your current situation, your future goals, and identifying and accessing available resources for a better financial life. And while many people begin this journey in adulthood, we believe it can start with conversations at home. 

 

Tips for Getting The Conversation Started:

Start Early. You may be thinking that young children aren’t quite old enough to talk about money, but this is a great time to get started! Young children may not be able to sit down with you to create a spending and saving plan, but they can definitely be engaged in age-appropriate conversations about money. And because young children are beginning to form their understanding of money, this is a great time to introduce basic financial concepts to help fortify their foundation.

Not sure where to start? Check out the Consumer Financial Protection Bureau’s Money As You Grow Bookshelf for a way to incorporate financial conversations while reading.

Meet Them Where They Are. Choosing age-appropriate topics to connect with your young ones about is important because you want to focus on conversations they’ll understand. If you’re starting with little ones, focus on the basics. This might look like talking about the different types of money, as well as where money comes from. If your kids are a little older, you might be talking about how they’re spending and saving their allowance. Regardless of where you’re staring, these little conversations become a foundation that you’ll be able to build on as they grow.

Educate Using The Everyday. You don’t need to come prepared with a detailed curriculum when communicating with your kids about money. In fact, including your kids in some of the everyday financial decisions in your life is a great opportunity for them to learn. If you’re planning a trip to the market, consider using this as an opportunity to share a little bit about planning to shop within your grocery budget. If your child asks you for something while you’re checking out at the grocery store (come on, we all want something impulsive here!), why not use this opportunity to talk about “wants” vs “needs”? 

You don’t need to wait for the “perfect” opportunities to roll around, because there are many opportunities throughout the day to let your little ones into your financial life in ways that will be meaningful to their financial journey.

Setting Shared Goals. When looking to engage your family around money, consider setting a shared financial goal. As a family, you can identify something you’d like to save for, anything from a family night out at the movies to your next summer vacation. Setting shared financial goals as a family is an excellent way to engage children in the financial journey and teach them about saving, planning, and achieving goals together!

 

Making money conversations a family affair can have a meaningful and lasting impact on the financial well-being of your kids. By setting goals and making your little ones a part of the conversation, you are building the foundation for their financial confidence and teaching them valuable lessons that will serve them for a lifetime.

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