How can I talk to my child about money?
Children learn many of their habits by mimicking what they see and hear from their parents. Think about how your child learned to walk and talk. Children observe these actions and replicate what they see. Your child is learning about money whether you’ve had the money talk with them or not. They are watching, listening and learning about your relationship with money.
Consider these following questions:
- Is your child around when you discuss your finances with your partner?
- How do you explain to your child you can’t afford their favorite brand sneakers?
- Are you avoiding phone calls from creditors?
- Do you shower your children with presents every single chance you get?
There are many scenarios you face each day that impact your child’s understanding of money. Even if you try hiding money problems from your child the tension in the home can be felt. How you explain that you can’t buy a new toy or clothes until payday can ingrain the paycheck-to-paycheck cycle. Your child hearing the phone ring and your reluctance of speaking to whomever is calling can teach them avoidance. A child getting every toy they want makes them believe money grows on trees.
Every parent and child dynamic is different and you know your child better than anyone else. However, talking about money is harder than talking about the birds and the bees. The money talk is important and should start as soon as they begin to comprehend that you leave home for work in order to make a paycheck.
3 Tips to Help You Talk to Your Child About Money
Speak to your child as early as possible. Money is only taboo if you choose to make it a no-no topic in the home. The more comfortable you are talking to your child about the basics of money the easier it will be talk to them about financial specifics. Many parents begin the financial talk when their child is about to head to college. At this stage, their knowledge of money or lack thereof will impact their decision making and the rest of their lives.
When speaking with your child make sure it’s age appropriate. You don’t want to talk about complicated mortgage amortization at the age of 10. It may also be too late to speak to your child about credit cards at 20 years old. Children understand the concept of work to make money relatively early. They also can understand that money is used to buy stuff. The concept of putting money away for rainy days or for the future is a bit harder to understand. So it’s important to start sooner.
Create structure. If you give your child an allowance make sure it’s tied to chores so they gain an understanding of the value of the dollar. Make your child understand how their time and successful completion of the chore results in a payment. Have a list of the chores available in order to receive the allowance. Talk to your child about how much they’ll need for the month and have a checklist. If a chore wasn’t completed, explain how that impacts their allowance. Set up a structure for them to follow such as 50% for savings (future purchases) and 50% for immediate purchases.
The most important thing a parent can do is to positively talk about money with their child. Money is personal and if you avoid the conversation they’ll pick up information from some other place. Additionally, make the discussion around money fun and show how it can help or hinder a them from living their dreams.
Many ways you can talk to child about the money.Nowadays different types techniques are available,books,good cartoons etc.?You can explain the matter through these types techniques.Some students cannot easily grab the information.But slowly they know about the demerits of overuse of money and also the merits of saving money.I am a writer at custom essay writing service panel and you can free to browse writing tips and good articles (any topic) from here.