Having the money talk with your kids is a delicate matter that every parent needs to handle, no matter how hard they wish they didn’t have to. Many families are still recovering from the negative impact of the recession, which served as a hard lesson on dealing with finances. The way you tell kids about money may protect them against financial mistakes in the long run.
Telling your kids about money is not an option. If you don’t have the talk, someone else will, and if that is the case you may not be happy with the message conveyed. Therefore, it is vital that you decide what and when you should tell your kids about money.
Children need all sorts of things and you can’t always afford them. One of the most frustrating situations is when you need to explain to your child your financial troubles. What you tell your kids in this particular situation depends very much on the age of the child.
For children that are under the age of 12, experts suggest not to tell them about the financial problems that you are going through. They will not only feel overwhelmed by a feeling of insecurity, but they will also feel frustrated and guilty for wanting or needing things.
Older children need to be aware that the family is going through financial issues. They also need to know that parents are taking the necessary steps to fix the situation. Children that are older will feel excluded if you simply “avoid” sharing some of the issues them. They may even offer to help by cutting down costs. The reaction is different with every child.
Too Much Money
Just like with all other things in life, too much of anything is not good. The same applies for money. If your family thrives, you should not encourage your children to spend more than they actually need to. As parents, you have a duty to cultivate a sense of money values in your children. They must understand that money doesn`t grow on trees, as my mom always use to say, and that it is important to save money, and that the situation may not always be as good as it is now.
For many families, the recession had a dramatic effect. Their financial situation changed radically and they went from being well off to having financial hardships. Many children couldn’t understand why the family didn’t drive the same expensive car or why they couldn’t go to the mall every other day. Things had changed. That is why children with families that are doing well financially need to be informed about the value of money.
Teens and Money
What do you tell your teen children about money? The best way that you can handle the money talk with your teen children is to go over the numbers with them. Explaining the budget is one great way for teen children to understand why they can only spend a certain amount for clothes every month. Explain to them on paper, in black and white, where the income goes. What they do with the amount that is allocated to them is a different story.
What If Children Ask About Salary
Sometimes children do ask parents about their salary. The reason they ask is different from child to child. What do you say when you are faced with such a question? I don`t think you should give your children details about how much you earn, like cents and dollars, simply because they could tell their friends and their friends could tell their parents. So unless you want your neighborhood knowing how much you make, it`s probably best to leave out the details. You should simply explain that your salary can comfortably cover your family`s expenses. If you are experiencing financial issues and you`re on a tight budget, you need to adapt your answers to the child’s age. Younger children need to be offered a sense of security so that they don’t feel the strain of financial difficulties.
What do you tell your kids about money?