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Kids and Money

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Imagine if there were a way to increase your chances of living your life in a way that makes you feel more fulfilled, more aligned with who you are and what your values are, and more at ease about your future. Imagine you had the ability to teach this way of life to your children so they grow up with these same principles they can pass on to their children and their children's children.  Sounds great, right?

For me, talking about money at home goes beyond the desire to teach financial concepts to my children. There is disconnect in our society between money and values and this stems from the way we are taught about money. I want my children to connect with money. I want to leave them an inheritance that is worth more than just money in the bank.

Research shows that adults are failing with money because of the money habits we learned as children. We historically have not been taught basic money management skills at a young age and therefore become parents who feel ill-equipped to teach these concepts to our children and thus the cycle continues.

Why are we not learning about money; a topic that spans so many other areas of our lives?

Schools are not required to teach young people about personal finance in most states. The federal government does not dictate education standards in the U.S because education is controlled at the state level. Therefore, a few states have incorporated money topics into their main curriculum but unfortunately most have not.

Why is this a problem for our society?

Many young people are ill-equipped to make major financial decisions as they get older while at the same time financial services are becoming more complex. Young adults are forced to learn by trial and error in the real world which has led us to be a country crippled by debt.

I believe personal finance is 80% behavior and only 20% knowledge. Kids need to be experiencing money lessons first hand long before they are launched into the work force and have to learn by making financial mistakes.

What can we do about it?

There are ways in which we parents can go about teaching good money behaviors. It's just like teaching good manners but with money.

#1 - Include kids in an ongoing conversation about your family's financial decisions. Things like whether you should continue putting money into your older car or if it's time to purchase a new one. You all want to go to Disneyworld, but how are you going to save for that?  Like talking about drugs, you're hopefully not going to have one long conversation about money when your child is 12 and expect a decent outcome from that. You want to be discussing these topics over and over again. We all learn better by experience so showing your children how to save money is better than just talking about it. Take them to the bank. Help them to understand your deposits funding your debit card and how this differs from a credit card.

#2 - Give them tasks at home they can do to earn money. You can use simple envelopes to help them to divide up money into 3 different categories: Spend, Save, and Give depending on the values of your family. There are also board games and online games that reinforce money skills.

#3 - Request for your children to open bills. Have them circle the due date and amount that is due. This will allow you to open a dialogue about your household expenses and what you are required to pay each month for services. It couldn't be a bad thing for a child to know exactly what you pay for data service on your cell phones each month, right?

#4 - Comparison shop when purchasing larger items. Ask your kids which one is the most expensive and which is the least expensive. Talk about why you think one is more expensive than the other.

This is an amazing time to be a parent who wants to be more intentional about showing children how to better connect with money and use it to better themselves and the world. The purpose is not to change our children or turn everyone into savers. The ongoing dialog and activities allows children to learn money concepts and what their natural tendencies are. We are meeting them where they are and hoping they make mistakes now rather than when the stakes are high.

By teaching our children the value of money, why it is so important to buy items you can afford and not go into debt, how to work and earn money, and how to help others by giving, we are setting them up for a life that is about more than just having money in the bank. It's not about teaching them how to end up with a millions dollars, maybe that will happen maybe it won't, but there is a much better chance of that happening if they are not strapped with credit card debt. This is an opportunity to leave your children and grandchildren an inheritance of character and a deeper sense of fulfillment.

If you have questions, please call Julie at 603-458-2776 or email her This email address is being protected from spambots. You need JavaScript enabled to view it..

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