How do I talk to my kids about money?

Teaching kids about money sets a foundation for financial success. The earlier, the better, but it is really never too late to start having these conversations. This video provides some tips to help guide the conversations.

Video transcript

As a parent, one of the greatest gifts you can give your children is the ability to develop responsible financial habits. This can be taught by having open and consistent conversations about money.

Over time, your children will build their financial literacy skills and learn how to successfully manage their money. Here are a few tips to make sure your conversations are interesting and impactful.

Make learning a part of everyday life

Children will be more receptive to the conversation if it’s in small pieces and as part of activities. If you’re out shopping for groceries, you can discuss the difference between needs and wants and why you bought or didn’t buy certain items. These small, real-life examples will help build a foundational understanding.

Gear the conversation to their age

Factoring in their maturity level is important. For example, you can help your preschooler understand that money is used to buy things and that people work to earn money. A child in grade school may be mature enough to learn about the concept of borrowing, the value of work or be offered a way to earn an allowance.

Teach the importance of saving

The habit of saving money is very important and should be a key discussion point in families. Providing an allowance and talking about short-term and long-term saving goals is a great way to introduce this concept. You can also discuss the benefits of saving for larger items and incorporate real examples of things they may want to start saving for.

The idea of talking about money with children can be overwhelming and intimidating. It’s important to take it one step at a time and know that it’s never too late to start. Having open and honest conversations now will increase the chance of your children having a healthy and responsible relationship with money in the future.